European natural gas prices nosedived on Monday after Canada said it would circumvent sanctions against Russia and ship a key piece of equipment that could help get more supplies flowing to the continent. 

The Title Transfer Facility (TTF) prompt contract began retreating from four-month highs Friday on reports that Canada would send a repaired turbine for Nord Stream 1’s (NS1) Portovaya compressor station. Canada confirmed its decision over the weekend, sending the TTF August contract nearly $4 lower to finish below $50/MMBtu. 

“Supply concerns remain imminent, however, as the NS1 pipeline in the Baltic Sea has now gone offline and the market fears it will not come back online at all,” said trading firm Energi Danmark. 

Russia’s Gazprom PJSC cut NS1 flows to Europe...