Gazprom Cuts Gas Deliveries to the Netherlands’ GasTerra
- May 31, 2022
- Posted by: Quatro Strategies
- Category: Energy
After refusing to comply with Moscow’s demands to pay in roubles, GasTerra will no longer receive gas from Russia’s Gazprom from May 31.
GasTerra, partly owned by the Dutch government, said it had already replaced the 2 billion cubic meters (bcm) of gas it would have received from Gazprom through October with another contract.
The company is 50% owned by Dutch government and 25% each by Shell and Exxon.
The Energy Minister of the Netherlands, Jetten said GasTerra’s decision not to agree with Gazprom’s payment requirements was understandable and it would not affect physical gas deliveries to Dutch households.
GasTerra said in its statement that it would not accept the payment system Russia demanded, which involved setting up accounts that would be paid in euros and then swapped for roubles.
The company said such an agreement would violate EU sanctions, adding that the required payment method involved too many financial and operational risks.
A Gazprom statement said the suspension would be in place until GasTerra makes payments in line with the requirement of the Russian government.
GasTerra said that it had repeatedly asked Gazprom to adhere to its contractual payment methods and delivery obligations.
The Dutch company further stated that the impacts are still unclear over the supply and demand situation in Europe after the cutting off of 2 bcm of Russian gas.
The Netherlands Ministry of Economy Affairs said it would not initiate emergency gas plan to ask industrial users to reduce consumption as it does not see this as a threat to supplies.
The country’s national grid operator Gasunie also stated that it does not expect disruption to the grid as a result of this supply cut.
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