News | Story

Russia suspends gas deliveries to Dutch trader GasTerra

Russia suspends gas deliveries to Dutch trader GasTerra

After refusing to adhere to Moscow’s requests for payment in roubles, GasTerra will no longer receive gas from Gazprom as of May 31, the two businesses announced on Monday.

GasTerra, which purchases and markets gas on behalf of the Dutch government, said it has found a replacement for the two billion cubic meters (bcm) of gas it had expected from Gazprom until October.

Dutch government organizations own 50% of the firm, with Shell and Exxon each owning 25%.

READ:  Oil Down with Strategic Reserves Release

On Twitter, Dutch Energy Minister Rob Jetten said, “We understand GasTerra’s choice not to accept Gazprom’s unilaterally imposed payment conditions.” “The physical distribution of gas to Dutch residences won’t be unaffected by this decision.”

According to a statement from GasTerra, the Dutch business opted not to implement the approach that Russia had wanted, which involved opening accounts that would be paid in euros and subsequently exchanged for roubles.

Such actions, according to the corporation, could breach European Union restrictions, and the payment channel also posed too many financial and operational hazards.

READ:  Schlumberger expands AI innovation network with opening of artificial intelligence center in Europe

Gazprom said in a statement that it will continue to cut off the gas supply to GasTerra until payments are made in accordance with the Russia-proposed system.

GasTerra stated that it had frequently requested that Gazprom follow its contractual payment and delivery responsibilities.

“It is impossible to predict how the loss of two billion cubic meters of Russian gas will affect the supply and demand situation in the European market,” the Dutch firm stated.

READ:  Oil Spikes as Kremlin Casts Doubt on Ukranian Peace

According to Pieter ten Bruggencate, a spokesperson for the Economy Affairs Ministry, the Netherlands will not implement its emergency gas plan, which would ask industrial customers to limit use.

“This is not yet viewed as a supply concern,” he said.

Gasunie, the country’s national grid operator, said it does not expect any grid disruption as a result of Gazprom’s decision to stop delivering to GasTerra.

Comment

Your email address will not be published.