Extremely negative market response may follow if Belarus shuts down Yamal-Europe pipeline - Fitch
<p> MINSK, Nov 11 - PrimePress The market would take extremely negatively a shutdown of the Yamal-Europe gas pipeline, it would lead to another spike in gas prices, Director of Natural Resources and Commodities Group at Fitch Dmitry Marinchenko told RIA Novosti. </p> <p> </p> <p> On 11 November, President of Belarus Alexander Lukashenko recommended the EU to think about the transit of gas and cargo through the country before imposing sanctions against Minsk. He noted that the Yamal-Europe gas export pipeline runs through the country, with the volume of gas transit from Russia to the West having recently increased significantly. </p> <p> </p> <p> “In theory, Gazprom could pump the volumes it is currently pumping through Yamal-Europe through Ukraine. At the moment, Yamal-Europe is at around 40% of its design capacity, with 35m cubic metres pumped through it on 9 November. But in reality, a shutdown of the pipeline would be seen by market participants as an extremely negative signal,” said Marinchenko. </p> <p> </p> <p> In his words, any additional transit capacity will be worth its weight in gold in winter, when the demand for gas increases due to cold weather, especially considering that so far the filling capacity of gas storage facilities in Europe, including Gazprom's, remains low. </p> <p> </p> <p> In addition, Marinchenko added, it is not certain that Gazprom will agree to greatly increase pumping through the Ukrainian branch. “Therefore, blocking the pipe would lead to another price hike as a factor increasing the likelihood of a physical shortage of gas in winter,” he said. </p> <p> </p> <p> The Yamal-Europe pipeline, along with The Nord Stream and the Ukrainian gas transportation system, constitutes one of the main routes for Russian pipeline gas supplies to Europe. The Yamal-Europe pipeline, over 2,000 km long, passes through four countries - Russia, Belarus, Poland and Germany - and can pump up to 33 billion cubic metres of gas per year. End </p>
2021-11-12
Primepress
Extremely negative market response may follow if Belarus shuts down Yamal-Europe pipeline - Fitch
MINSK, Nov 11 - PrimePress The market would take extremely negatively a shutdown of the Yamal-Europe gas pipeline, it would lead to another spike in gas prices, Director of Natural Resources and Commodities Group at Fitch Dmitry Marinchenko told RIA Novosti.
On 11 November, President of Belarus Alexander Lukashenko recommended the EU to think about the transit of gas and cargo through the country before imposing sanctions against Minsk. He noted that the Yamal-Europe gas export pipeline runs through the country, with the volume of gas transit from Russia to the West having recently increased significantly.
“In theory, Gazprom could pump the volumes it is currently pumping through Yamal-Europe through Ukraine. At the moment, Yamal-Europe is at around 40% of its design capacity, with 35m cubic metres pumped through it on 9 November. But in reality, a shutdown of the pipeline would be seen by market participants as an extremely negative signal,” said Marinchenko.
In his words, any additional transit capacity will be worth its weight in gold in winter, when the demand for gas increases due to cold weather, especially considering that so far the filling capacity of gas storage facilities in Europe, including Gazprom's, remains low.
In addition, Marinchenko added, it is not certain that Gazprom will agree to greatly increase pumping through the Ukrainian branch. “Therefore, blocking the pipe would lead to another price hike as a factor increasing the likelihood of a physical shortage of gas in winter,” he said.
The Yamal-Europe pipeline, along with The Nord Stream and the Ukrainian gas transportation system, constitutes one of the main routes for Russian pipeline gas supplies to Europe. The Yamal-Europe pipeline, over 2,000 km long, passes through four countries - Russia, Belarus, Poland and Germany - and can pump up to 33 billion cubic metres of gas per year. End