London Daily

Focus on the big picture.
Thursday, Nov 27, 2025

Europe on edge as Nord Stream Russian gas link set for planned shut-down

Europe on edge as Nord Stream Russian gas link set for planned shut-down

The biggest single pipeline carrying Russian gas to Germany starts annual maintenance on Monday, with flows expected to stop for ten days, but governments, markets and companies are worried the shut-down might be extended due to war in Ukraine.

The Nord Stream 1 pipeline transports 55 billion cubic metres (bcm) a year of gas from Russia to Germany under the Baltic Sea. It will undergo maintenance from July 11 to 21.

Last month, Russia cut flows to 40% of the pipeline's total capacity, citing the delayed return of equipment being serviced by Germany's Siemens Energy (ENR1n.DE), in Canada. Canada said at the weekend it would return a repaired turbine, but it also said it would expand sanctions against Russia's energy sector.

Europe fears Russia may extend the scheduled maintenance to restrict European gas supply further, throwing plans to fill storage for winter into disarray and heightening a gas crisis that has prompted emergency measures from governments and painfully high bills for consumers.

German economy minister Robert Habeck has said the country should confront the possibility that Russia will suspend gas flows through Nord Stream 1 beyond the scheduled maintenance period.

"Based on the pattern we've seen, it would not be very surprising now if some small, technical detail is found and then they could say 'now we can't turn it on any more'," he said at an event at the end of June.

Kremlin spokesperson Dmitry Peskov dismissed claims that Russia was using oil and gas to exert political pressure, saying the maintenance shutdown was a regular, scheduled event, and that no one was "inventing" any repairs.

There are other big pipelines from Russia to Europe but flows have been gradually declining, especially after Ukraine halted one gas transit route in May, blaming interference by occupying Russian forces.

Russia has cut off gas supplies completely to several European countries that did not comply with its demand for payment in roubles.

"The last few months have shown one thing: Putin knows no taboos. A complete halt to gas supplies through the Nord Stream pipeline cannot therefore be ruled out," Timm Kehler, managing director of German industry association Zukunft Gas, said.

TURBINE TROUBLE


Germany at the weekend welcomed Canada's decision to issue a "time-limited and revocable permit" to allow equipment to be returned for the Nord Stream 1 pipeline.

But Ukraine's energy and foreign ministries said in a statement they were "deeply disappointed" and urged Canada to reverse a decision they said amounted to adjusting the sanctions imposed on Moscow "to the whims of Russia".

Siemens Energy said it was working on further formal approvals and logistics to get the equipment in place as soon as possible.

Zongqiang Luo, gas analyst at consultancy Rystad Energy, said it was "not impossible" Gazprom could use any delay as a justification to extend the maintenance period.

In previous years, the annual maintenance period on Nord Stream 1 has lasted around 10-12 days and has finished on time.

It is not uncommon for additional faults to be detected during routine maintenance at pipelines or gas infrastructure and operators can prolong outages if necessary.

While a complete halt of gas is considered unlikely, Gazprom has not been re-routing flows via other pipelines, meaning a prolonged reduced flow rate is probable, analysts at Goldman Sachs said.

MULTI-BILLION ECONOMIC BLOW


Germany has moved to stage two of a three-tier emergency gas plan, which is one step before the government rations fuel consumption.

It has also warned of recession if Russian gas flows are halted. The blow to the economy could be 193 billion euros ($195 billion) in the second half of this year, data from the vbw industry association of the state of Bavaria showed last month.

"The abrupt end of Russian gas imports would also have a significant impact on the workforce in Germany...around 5.6 million jobs would be affected by the consequences," vwb's managing director Bertram Brossardt said.

The effects would be wider still. A complete halt would keep European gas prices, which have already stung industry and households, higher for longer.

Wholesale Dutch gas prices, the European benchmark, have risen more than 400% since last July.

"If Nord Stream gets cut off, or if Germany loses all its Russian imports, then the effect will be felt on the whole of north-western Europe," Dutch energy minister Rob Jetten said.

In an interview with Reuters on Thursday, he said the Dutch Groningen gas field could still be called upon the help neighbouring countries in the event of a complete cut off in Russian supplies, but ramping up production would risk causing earthquakes. read more

Meanwhile, a halt of supply through Nord Stream 1 would hurt Russia as well as western Europe because it would lose revenues.

Russia's finance ministry said it in June expected to receive 393 billion roubles ($6.4 billion) in extra oil and gas revenues compared with the amount expected in its budget planning.

For July, it expects 259 billion roubles above its budget plan.

Extended maintenance could also result in more Russian gas production shut-ins, relative to the 9% year-to-date year-on-year decline in Gazprom production reported so far, Goldman Sachs said.

($1 = 0.9898 euros)

($1 = 61.5000 roubles)

Newsletter

Related Articles

0:00
0:00
Close
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
×