Siemens Energy denies participation in Nord Stream repair

German company Siemens Energy said that its specialists are not involved in technological work at the Portovaya compressor station (CS), which ensures the operation of the Nord Stream export gas pipeline, Reuters reported on August 31. Official representative Siemens Energy confirmed this information to Vedomosti. Vedomosti also sent a request toGazprom“.

Gas exports to the EU via Nord Stream were suspended from 4:00 Moscow time on August 31 to 04:00 Moscow time on September 3 due to preventive maintenance at Portovaya. Against this background, spot gas prices in the EU (TTF hub) rose by 11%, almost reaching $3,000 per 1,000 cubic meters. m.

Previously “Gazprom”explained that the stoppage of exports was necessary for maintenance and scheduled preventive work on the only working gas compressor unit (GCU) Trent 60. The company stressed that the work at Portovaya would be carried out together with specialists Siemens.

After completion of work and in the absence of technical failures, exports will be restored to the previous level of 33 million cubic meters. m per day. These are the volumes to which gas pumping dropped at the end of July due to problems with the return of the turbine Siemens after renovation in Canada.

In total, there are six gas compressor units at the Portovaya CS, each of which is equipped with an SGT-A65 turbine with a capacity of 52 MW produced by Siemens. In addition, there is an “exchange” fund – 2 more turbines of similar capacity, which are replaced by workers during their repair. Previously, one of these turbines was refurbished in Canada and is now located in Germany. The second turbine was never able to go for repairs. And of the six turbines currently installed, only one is working.

Commenting on the shutdown of the last gas compressor unit at Portovaya on August 31, Alexey Miller, Chairman of the Board of Gazprom, said that “the only unit should operate in a normal, trouble-free mode until it is put into overhaul.” “And therefore, as part of the ongoing work, it is very important that all technical and technological risks are identified that would need to be eliminated in a timely manner,” he said. Siemens, according to the top manager, has practically no opportunity to provide regular overhauls of gas compressor units. “Siemens simply has nowhere to carry out this work,” Miller said (cited by Interfax).

But, according to the source of Vedomosti, who is familiar with the maintenance of Portovaya, specialists Siemens they still work at the facility (the interlocutor did not specify their formal status). Disagreements in the statements can be explained by the fact that the German company announced its withdrawal from the Russian Federation, therefore, according to the interlocutor, it is important for Siemens Energy to emphasize the absence of its specialists at the facility under the sanctions.

Maintenance of units at the Portovaya compressor station by third-party specialists would violate the terms of warranty service for turbines, said Pavel Ikkert, managing partner of the law firm Ickert and Partners. He does not rule out that maintenance can be carried out with the help of Siemens specialists, but “in an informal way” in order to eliminate sanctions risks.

Under the sanctionsGazprom” is facing disruptions in the supply of foreign equipment due to problems with the so-called imports of the second or third level, when the absence of even an insignificant element affects the entire supply, Oleg Aksyutin, deputy chairman of the company’s board, said at the Tatarstan Petrochemical Forum on August 31.

In eight months of 2022, global gas demand fell by 40 billion cubic meters. m, of which almost 30 billion cubic meters. m had to decline in 27 EU countries, Miller said on August 31 at a conference call dedicated to the Day of the oil and gas industry worker. “This is a 73% decline in global demand. And together with the UK – 85%,” he said (quote from Gazprom’s Telegram channel).

According to the European Network of Gas Transportation System Operators (ENTSOG) and Vedomosti calculations, Gazprom currently exports about 119 million cubic meters to the EU. m of gas per day against about 438 million cubic meters. m last year.

The situation threatens with consequences both for Gazprom and Siemens Energy, believes Sergei Pravosudov, director of the National Energy Institute.

According to the expert, Gazprom will try to prove that the decline in exports to the EU was due to emergency circumstances and the actions of Siemens, which did not return the turbine for Portovaya from repair on time. Siemens Energy, in turn, will insist on the need to comply with the sanctions.

“The issue of gas exports is very closely linked to global politics, so a further reduction in supplies via Nord Stream cannot be ruled out,” Pravosudov believes.

In the current situation, it would be easiest for the European Union to launch Nord Stream 2, the analyst argues. This gas pipeline was completed in September 2021, its capacity is comparable to Nord Stream 1 and amounts to 55 billion cubic meters. m of gas per year.

According to the analyst, now it would be easier to launch a new pipe than to coordinate all the disagreements on Nord Stream 1.