LONDON (Bloomberg) -
Russia began sending natural gas to Europe through the Nord Stream pipeline system after a pause, bringing relief to a continent whose economy is starting to wobble under the strain of reduced supplies.
Shipments returned to 40% of capacity, their level before flows were halted for 10 days of planned maintenance, data from the pipeline operator showed.
While the restart eases Europe’s worst fears — that Russian President Vladimir Putin would keep the pipeline halted — much uncertainty remains about future flows through the link.
The European Union is racing to stockpile natural gas ahead of the winter amid its worst energy crisis in decades. For now, the pipeline’s restart may alleviate concerns about a longer stoppage that could lead to massive economic damage. The situation has already undermined the euro, which has tumbled to near-parity with the U.S. dollar.
“The resumption this morning of flows along Nord Stream is likely to lead to a collective sigh of relief from not just the European gas market, but from the wider economy,” said Tom Marzec-Manser, head of gas analytics at ICIS in London.
Moscow has been curbing gas shipments to Europe for months, but the continent still relies on the little it’s getting to fill the retired salt caverns, aquifers and fuel depots that hold its fuel inventories. Without Russian gas, Europe is unlikely to have enough supply to warm homes and keep the lights on throughout the winter.
In Germany, the EU’s largest economy, gas-storage facilities are at about 65% capacity, well short of the government’s 90% target. Based on fill rates in the week before Nord Stream shut for maintenance, it would take more than two months to reach the level that would heat homes and keep factories running through the colder months.