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Nord Stream 1 set to drop to 20% capacity

Close price: The gas squeeze on Europe is about to get a lot tighter from tomorrow. That’s due to Nord Stream 1 reducing to 20% flows, with GazProm stating it can’t operate any higher, without the turbine returned and fitted. This news rippled across the energy markets, with all commodities moving higher.

A typical 12 month Elec contract has now broken the £400MWh mark. But that seems cheap compared to what the National Grid paid Belgium last week Wednesday. A staggering £9,724MWh or £9.724/kwh for energy, to prevent a South East blackout in the UK.

While the UK is much more well diversified for gas and electric generation than Europe, and the purchase was triggered due to a record heatwave, that’s a clear sign of panic to be paying 5000% above market price. It highlights vulnerabilities in our energy security. Someone, somewhere in Belgium is happy.     

Opening price: Prices are up once more. It’s really volatile out there on certain delivery periods. The documentation issue preventing delivery of the Siemens turbine remain. Meanwhile, Gazprom has announced that another turbine will conveniently stop from today, further reducing flows. The squeeze on Europe gets tighter.