Russian gas cuts: after Uniper, RWE wants to make Gazprom pay

RWE has filed an arbitration case against Gazprom to be compensated for cuts in Russian gas deliveries to Germany.

Share:

German energy company RWE has filed an arbitration case against Gazprom to be compensated for cuts in Russian gas supplies to Germany, a spokeswoman said Tuesday, days after a similar announcement by Uniper Group.

“We have taken the necessary legal steps,” a spokeswoman said in a statement sent to AFP, without giving further details on the amounts requested.

An arbitration tribunal has been set up, she said.

The group had signed a contract with Russia’s Gazprom for the delivery of 15 terawatt hours of gas in 2022.

Some of these contracts have not been honored, due to the reduction since June, then the total end since September, of Russian gas deliveries via the Nord Stream pipeline, against the backdrop of the war in Ukraine.

In order to supply its customers, the German company had to buy on the short-term spot markets, where prices exploded during the summer.

However, RWE’s situation is better than that of the Uniper Group, Germany’s largest importer, which used to buy almost 200 terawatt hours of Russian gas annually.

Uniper, nationalized by the German state, announced last Wednesday that it was taking Gazprom to an arbitration tribunal.

The group is demanding at least 11.6 billion euros in compensation from the Russian giant.

Gazprom invoked this summer a case of “force majeure” to justify the cessation of its deliveries, without giving further details.

Invoking “force majeure” allows a company to be released from its contractual obligations by exonerating it from any legal liability.

The event mentioned must be particularly unforeseeable, independent of the company’s will and preventing it from fulfilling its obligations.

Uniper and RWE have denied this claim since the beginning of the crisis.

In late September, explosions off the coast of Denmark and Sweden destroyed entire sections of the Nord Stream 1 and 2 pipelines, making delivery effectively impossible.

The hypothesis of sabotage is favored by the Danish, German and Swedish judicial authorities, who have launched an investigation.

Russia denies being at the origin of this incident.

VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
Enbridge Gas Ohio is assessing its legal options following the Ohio regulator's decision to cut its revenues, citing potential threats to investment and future customer costs.
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.