A Russian natural gas pipeline that delivers gas to Europe has been stuck in reverse for more than three weeks, leading to an increase in energy costs across the continent.
According to Pipeline & Gas Journal, the flow reversal has been in effect since Dec. 21 and wholesale gas prices in Europe continue to climb as the Yamal-Europe pipeline flows east from Germany to Poland.
In some cases, European demand was met by traders who chose to dip into stockpiles rather than pay potentially record prices for natural gas, due to the shortage caused in part by the pipeline reversal.
Some European Union lawmakers have accused Russia of using the natural gas pipeline situation as leverage over the west to get its Nord Stream 2 pipeline to Germany approved, Pipeline & Gas Journal reported. Russia supplies more than 30% of the EU's natural gas.
Russia has denied the accusations and claims it is meeting its contractual obligations, according to the report. When the flow of natural gas will be directed west again is unclear.
"Russian gas flows are purely price responsive at the moment," Henryk Vasilevski, gas and LNG (liquified natural gas) analyst at S&P Global Platts, said in the report. "If it is trading below in January, we might see Mallnow (a natural gas compressor station near Frankfurt, Germany) at a slight reverse or close to zero for the rest of the month."
The reversed flow has contributed to an energy crisis in Europe which has caused some energy providers to go out of business and consumers to pay higher energy prices.
In December 2021, gas prices reached a high of 180 euros per megawatt hour, Reuters reported. At the start of 2019, the price was 19 euros.
Shipments of LNG have helped bring prices below 100 euros, but prices are edging upward again in response to limited Russian supply and weather forecasts of lower temperatures, according to the report.