Nord Stream 1: Gazprom announces indefinite shutdown of pipeline

The Russian energy major Gazprom extended the shutdown of gas flows through its key Nord Stream 1 pipeline to Germany on Friday evening, providing no timeframe for a reopening.

Gazprom, the state-owned oil and gas firm, said supplies would remain halted indefinitely after a leak was detected. It said the pipeline would not restart until repairs were fully implemented.

Nord Stream 1 is the single biggest pipeline for gas from Russia to Europe and has the capacity to deliver 55bn cubic metres (bcm) of gas a year. Continued supplies through the pipeline are seen as crucial to prevent a deepening of the energy crisis.

Early on Wednesday, Gazprom completely halted the flow of gas through Nord Stream 1, in line with an earlier announcement, adding that the stoppage would last for three days. Flows were due to resume just after midnight on Saturday morning.

The company said work was necessary on the only remaining functioning turbine at the Portovaya compressor station at the Russian end of the pipeline, but German officials cast doubt on that explanation.

The timing of the move will raise questions over whether Putin was responding to the impending imposition of a cap on Russian oil. Finance ministers from the UK, US, France, Germany, Italy, Japan and Canada on Friday agreed a plan to put a ceiling on Russian oil prices.

The proposal would mean importers seeking shipping services and insurance cover from companies based in G7 and EU countries would need to adhere to a price cap to transport Russian oil. It is likely to be introduced from December.

The shutoff will add to concerns that Europe, and Germany in particular, will be forced to significantly curtail power usage for households and businesses this year.