Russian gas supply to the west resumes via the Yamal-Europe gas pipeline

A worker checks the pipes of a gas compressor station at the Yamal-Europe gas pipeline near Nesvizh, about 130 km (81 miles) southwest of Minsk December 29, 2006. REUTERS/Vasily Fedosenko

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MOSCOW, Feb 26 (Reuters) – Gas supplies have resumed from Poland to Germany via Russia’s Yamal-Europe gas pipeline, data from German grid operator Gascade showed on Saturday, as flows returned in a normal westerly direction for the first time since December.

There were no bids for new gas purchases after 0600 (0500 GMT) westbound Saturday, Gascade showed, so the recovery could only be temporary.

Markets have been on edge since Russia invaded Ukraine. Russian commodity exports have not been seriously affected by the conflict.

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Gas in the section of the pipeline had been flowing east since Dec. 21 as buyers in Poland tapped into supplies stored in Germany rather than buying more Russian gas at high spot prices. Read more

Russian gas giant Gazprom has resumed gas supplies via the Western route amid strong demand in Europe, particularly from Italy, an industry source told Reuters earlier. Read more

Westbound flows at the Mallnow metering point were 6.5 million kilowatt hours per hour (kWh/h) on Saturday morning after 6.4 million kWh/h capacity had been allocated to Gazprom until then .

The source, who requested anonymity because he was not authorized to speak to the media, said the prospect of a long-term supply was unclear amid market volatility.

The pipeline typically accounts for around 15% of Russia’s gas supply to Europe and Turkey.

Gazprom, which can reserve pipeline capacity in daily auctions, has not ordered any transit capacity for February and March via road.

It has not reserved capacity for the second and third quarters of the year and does not intend to hold gas spot sales on its electronic platform this week.

Russia has also increased supplies to Europe via Ukraine, the data shows, as a price spike has made it cheaper to buy Russian pipeline gas than buying it on the spot market, officials said. Refinitiv analysts.

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Reporting by Ashitha Shivaprasad and Vladimir Soldatkin; Editing by Leslie Adler and Clarence Fernandez

Our standards: The Thomson Reuters Trust Principles.

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