With the arrival of winter in Europe and energy prices soaring, tensions are running high over the provision of gas from Russia — especially through the Yamal-Europe pipeline that runs through Poland and Belarus.
Yet the Yamal pipeline is just one part of a complex gas infrastructure network shaped not only by energy needs but also wider economic interests and politics, including strife between Russia and Ukraine.
The pipeline, opened in 1994, runs across 2,000km to Germany from the city of Torjok in central Russia, transiting through Belarus and Poland.
Photo: Reuters
It delivers 30 billion cubic meters of gas to Europe each year, making it one of the most important vehicles for the provision of Russian gas to the continent.
Russia sells Germany gas at a cheaper rate than it does to Poland, in part to make up for the higher transit fees through the longer delivery distance.
However, this means that it is more cost efficient for Poland to buy Russian gas from Germany.
Some of the gas sold by German traders to Poland flows directly into Polish territory, or if that is not sufficient, the pipeline can also operate in reverse to send more to Germany’s eastern neighbor.
Since Dec. 21, last year, the pipeline has been operating in reverse, with gas flowing east back into Poland from the German border, data from management company Gascade Gastransport GmbH seen by Agence France-Presse showed.
This means that over the past few days, Germany has not been receiving gas via Yamal.
Meanwhile, Russian gas continues to flow to Europe through other major pipelines such as Nord Stream I and TurkStream.
It is not unusual for the Yamal pipeline to operate in reverse for short periods, but this latest about-turn comes against a backdrop of political tension over fears that Russia could invade Ukraine.
In Germany, the government has said that in the event of any “escalation,” it would put the brakes on another gas pipeline, Nord Stream 2, which is still awaiting the green light from the authorities.
Some European states, such as Poland and Ukraine, have accused Moscow and Russian energy company PJSC Gazprom of cutting gas supplies to Europe to exert political pressure over these tensions.
Russian President Vladimir Putin has said the change in gas flow through the Yamal pipeline is purely down to fluctuating orders and denied any political motive.
Gazprom, for its part, has called accusations that it is failing to deliver enough gas to Europe “absolutely groundless and unacceptable,” and blamed Germany for dipping into its reserves to supply neighboring Poland.
Berlin on Monday denied any intervention on its part.
“It is not the government that decides on gas flows, but the market, the traders,” the German Ministry for Economic Affairs and Climate Action said.
George Zachmann, a specialist in energy issues for the Brussels-based Bruegel think tank, said that Gazprom might also be “favoring its own pipelines” over those it does not 100 percent control, such as the Yamal pipeline.
A German economy and climate ministry spokeswoman said that “security of supply is still guaranteed.”
Yet Berlin, which has “relatively low” gas reserves with its tanks just 53 percent full, could soon have “difficulties,” Association of Energy Economists president Christophe Bonnery said.
“If contracts are adhered to there will be no problems until at least March,” Zachmann said.
However, “if Russia cannot or will not deliver gas for technical or other reasons, then supplies could fall short,” he said.
The wrangling comes amid an explosion in gas prices, which are up to seven times higher than at the beginning of the year.
The surge is thought to be partly down to a particularly cold winter and an increase in activity linked to the post-COVID-19 economic recovery.
With 40 percent of gas consumed in Europe coming from Russia, Moscow is suspected of taking advantage of the tensions on the world market to reduce supply and drive up prices.
The International Energy Agency in September called on Russia to be a “reliable supplier.”
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS