Gazprom Suspends Gas to Important Energy Supply Link

Gazprom

In a statement posted on its Twitter page on Tuesday, Gazprom announced that it has completely suspended gas supplies to Netherlands’ GasTerra B.V. “due to failure to pay in rubles”.

The Twitter statement comes with a link to a press release on the Gazprom website, although Rigzone is currently not able to access Gazprom’s site and has not been able to for some time.

In a statement posted on its website on Monday, GasTerra said it had decided not to comply with Gazprom’s “one-sided payment requirements”.

“In a decree issued on 31 March, Russian President Putin stated that, from now on, Russian gas would have to be paid for in rubles,” GasTerra said in the statement.

“This means that anyone wanting to buy gas would have to open both a euro and a ruble account with Gazprombank in Moscow. GasTerra will not go along with Gazprom’s payment demands. This is because to do so would risk breaching sanctions imposed by the EU and also because there are too many financial and operational risks associated with the required payment route,” GasTerra added in the statement.

“In particular, opening accounts in Moscow under Russian law and their control by the Russian regime pose too great a risk for the Groningen company,” GasTerra went on to note.

GasTerra highlighted that the cessation of supply by Gazprom means that, between now and October 1, 2022, approximately two billion cubic meters of contracted gas will not be delivered. GasTerra said it has anticipated this by buying gas from other providers.

“The European gas market is highly integrated and extensive. However, it is impossible to predict how the lost supply of two billion cubic meters of Russian gas will affect the supply/demand situation and whether the European market can absorb this loss of supply without serious consequences,” GasTerra said in the statement.

“GasTerra has repeatedly urged Gazprom to respect the contractually agreed payment structure and supply obligations, but to no avail,” GasTerra added.

GasTerra is a wholesaler that buys gas from domestic and foreign producers and on the open gas market. The company describes itself as an important link in the energy supply inside the Netherlands and Western Europe.

In a statement posted on its website on March 7, GasTerra said it was appalled, worried and angry about the war. It highlighted at the time that it had supported decisions to end Russian involvement or Russian representation in a number of partnerships.

Source: Rigzone.com