As officials in Greece and Europe tentatively wait to see if the TurkStream pipeline will resume operating next week, following an announcement several days ago by Russia’s Gazprom that gas supply via both lines of its TurkStream pipeline would be temporarily suspended June 21 to 28 for scheduled annual maintenance, Germany has just moved into the second of its three-stage emergency gas plan after Russia slowed supplies to the country, intensifying concerns of a market collapse.
The TurkStream suspension comes amid major disruptions to Gazprom’s supplies to Europe. Natural gas flow through the Nord Stream pipeline, running from Russia to Germany and also supplying the rest of Europe, has been cut by more than half since last week. Gazprom cited an equipment hold-up in Canada as a result of sanctions over the Ukraine war.
With fears, over recent months, of a drastic slowdown in Russian gas supply to Europe, now confirmed, the EU and its member states, all on high alert, are laying out emergency plans ahead of next winter.
Germany warned the country’s energy crisis may trigger a “Lehman effect” across the utility sector as it moved one step closer to rationing natural gas. “The whole market is in danger of collapsing at some point — so a Lehman effect in the energy system,” German economy minister Robert Habeck admitted at a press conference.
Under the second stage of Germany’s emergency gas plan, utility companies can pass on price increases to customers. The government is holding back on triggering a clause preventing this for now.