Fri. Jul 26th, 2024

Canada’s reported promise to return Nord Stream pipeline equipment eased energy market concerns

Natural gas spot prices in Europe decreased by 12% on Monday after the Canadian government announced its decision to send a repaired Nord Stream 1 gas turbine back to the pipeline operator, easing concerns over a growing energy crunch in the region.

The Dutch TTF contract, a key European spot benchmark, was trading at $1639.5 per thousand cubic meters, or €154 per megawatt hour,  according to London ICE data.

On Saturday, the Canadian authorities said they would sidestep sanctions by returning vital equipment needed for the operation of the Nord Stream 1 gas pipeline. The turbine will be delivered to Germany first, which will then send it on to Gazprom so Ottawa does not breach the Ukraine-related restrictions it introduced against Moscow.

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