Ukraine Grid Warns Russia Moves Could Affect Europe Gas Flow

(Bloomberg) —

Ukraine’s natural gas grid warned that transit flows to Europe could be affected as Russia and illegal armed groups are disrupting operations at a key compressor station.

Occupiers are interfering with operations at the Novopskov gas compressor station in the Luhansk region, Gas Transmission System Operator of Ukraine said in a statement. The infrastructure is key for about a third of Russian gas that Ukraine transits to Europe.

The grid warned it will be forced to stop operations at the facility in case it loses control of operations. Disconnecting the compressor station will mean no transit through Sokhranivka, a key entry point for Russian gas, it said. 

“Responsibility for the consequences falls on the Russian Federation,” the grid manager said. Occupiers have taken actions including changing the operation of communication equipment and technological modes at the Novopskov station, it said. Russia’s exporter Gazprom PJSC didn’t immediately respond to a request for comment. 

Earlier on Friday, Gazprom said it’s sending gas to Ukraine for further transit to Europe as normal. Gas-shipping orders declined from a day before. But flows are in line with client requests, the company said. 

Russia supplies about 40% of the European Union’s gas demand and about a third of that is transited via Ukraine, making it a linchpin in the continent’s energy security. While gas prices have eased recently, as the weather gets milder and Europe is getting near-record volumes of liquefied natural gas, traders in Europe remain on edge. 

Any potential damage to Ukraine’s gas network or any decision by Russia to curb flows in response to international sanctions could trigger a supply crunch. Russian troops are preparing for redeployment to eastern Ukraine ahead of what’s expected to be a major offensive there. 

(Updates with Russian gas flows via Ukraine in 5th paragraph)

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