Russia’s Gazprom PJSC said Monday that it would again reduce flows on the Nord Stream 1 (NS1) pipeline to take another turbine out of service for repairs, further cutting deliveries to Europe where prices soared on the decision. 

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The company said deliveries on the 745-mile, 6 Bcf/d link between Russia and Germany would be cut to 20% of capacity by Wednesday. Gazprom has been awaiting delivery of a repaired turbine it needed to install before work could begin on other equipment at the Portovaya compressor station. The company said Monday that too much time had elapsed between overhauls and another turbine needed to be taken offline, leaving just one of eight engines operating at the facility. 

The delayed turbine has been stuck in both Canada and Germany due to sanctions and missing paperwork. Russian newspaper Kommersant reported over the weekend that the equipment missed a Saturday ferry and was still stranded in Germany. 

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Gazprom said in a separate statement earlier Monday that it has received documents from Canada, but hinted the turbine wouldn’t be returned in time and said sanctions against Russia for its war in Ukraine must be resolved to get the equipment back to the country. 

“The turbine will be installed after all the technological formalities have been completed, and the flows will be at the levels that are technologically possible,” Kremlin spokesman Dmitry Peskov told reporters Monday. The situation may change “if Europe continues its course of absolutely recklessly imposing sanctions and restrictions.”

Russian President Vladimir Putin warned last week that deliveries on NS1, one of the largest conduits delivering gas to Europe, would likely be cut this week if the turbine wasn’t returned in time to overhaul other equipment.

European gas prices eased last week after NS1 came back online after 10 days of annual maintenance that was unrelated to the turbines. The system has been operating at 40% of capacity since last month due to technical issues at Portovaya. 

European prices have remained elevated on the Russian supply risk. The continent is working to fill storage at an accelerated pace ahead of winter to protect against the possibility of Russia completely cutting off supplies. The September Title Transfer Facility contract jumped nearly $6 to finish Monday at close to $54/MMBtu. 

Germany’s Federal Network Agency, which regulates the nation’s gas market, said Monday that a prolonged cut in gas flows on the system would make it difficult for the country to meet its goal of filling storage levels to 95% by November without additional measures. 

The European Union rolled out a plan last week to cut gas consumption by 15% among all consumers until next spring. Some of the bloc’s members, including Greece, Portugal and Spain, have indicated they won’t comply and are pushing for exemptions. 

The deteriorating supply outlook has Asian buyers on edge as well. Engie EnergyScan noted that Japan-Korea Marker (JKM) spot prices jumped by nearly 13% last week. JKM has risen as buyers in Asia are stepping up efforts to secure additional LNG cargoes ahead of what could be even more competition with Europe.

Workers at Shell plc’s Prelude floating liquefied natural gas facility offshore Australia have extended a strike until Aug. 4. The labor dispute has disrupted cargo loadings at the terminal and limited supplies in Asia. 

The Australian Energy Market Operator last week also requested LNG exporters make more volumes available for the country’s southern states as reserves in Victoria dip to unprecedented levels. The bulk of Australia’s cargoes go to Asia.

Meanwhile, in the United States, Henry Hub continued its move higher as traders factor in strong summer cooling demand and the upcoming front-month expiration. A heat wave across much of the country has bolstered prices over the last month despite an outage at Freeport LNG that has limited natural gas export volumes.

A weak storage injection last week, when the print fell far short of expectations, helped to keep prices elevated. U.S. storage inventories remain below the five-average.

Editor’s Note: This segment is regularly available to subscribers of NGI’s LNG Insight. It covers weekly developments in the global natural gas markets and is being made available free due to escalating tensions between Russia and Europe. To request a trial to NGI’s LNG Insight click here.