Nord Stream relief to prove short-lived

The takeaway from the news today is that the Nord Stream 1 pipeline has seen gas flows restart and capacity has returned to before the maintenance period shutdown i.e. 40% or 67 million cubic metres per day. But as mentioned earlier here, a second turbine will be due for repairs next week and that is likely to see capacity halved to 30 million cubic metres per day.

For now, the resumption of the gas flows will buy Germany some time and slight relief but the overall gas situation remains tense. The gas shortage in Europe is already being exacerbated by a multitude of factors and Russia cutting supplies is a major one in that regard. As much as markets are holding some calm on the news today, it is going to be a brutal winter for Europe with gas rationing potentially on the cards.

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