Russia’s Gazprom reduces gas supply to Engie and puts France on alert

French energy supply company Engie has reported that the Russian giant Gazprom has reduced since Tuesday the flow of gas supplied to themwhich had already fallen substantially since the beginning of the Russian invasion of Ukraine, as a consequence of the disagreement between the parties in the application of some contracts. “Gazprom has informed Engie of a reduction in gas deliveries, as of today, due to a disagreement between the parties on the application of some contracts,” the French company confirmed in a statement.

In this regard, Engie recalled that Gazprom’s supply had decreased substantially since the beginning of the war in Ukraine, at the end of last February, with a recent monthly flow of about 1.5 TWhcompared to Engie’s total annual supplies in Europe above 400 TWh. The French ‘utility’ has underlined that it had already secured the necessary volumes to meet its commitments to its customers and its own requirements, after putting in place several measures to significantly reduce the direct financial and physical impact that could arise from a supply interruption of gas by Gazprom.

France prepares a campaign to save energy

The French Government will launch a campaign of recommendations to citizens to save energy within the objective of reducing consumption in the face of a possible cut in gas shipments from Russia and avoiding cuts in the electricity supply. If consumption is not reduced “there will be risks of energy restrictions” with “an impact on employment”, and it is something that “we want to avoid at all costs”, said the government spokesman, Olivier Véran, in a statement to France Info. ” We want to avoid cuts” of energy, although “everything is possible, all scenarios are on the table,” he insisted.

The Prime Minister, Élisabeth Borne, already announced yesterday, Monday, that the companies must submit energy sobriety plans and appoint an energy mediator who will be in charge of supervising and applying these saving plans. The turn will come to private consumers at the end of September or beginning of October with the presentation of a roadmap, accompanied by a citizen information campaign, which will allow “each one to have a significant impact” on energy savings, added Véran . The objective of the French Executive is to reduce energy consumption by 10% in two years.

Véran advanced that France will have its gas reserves completely filled for the winter, but acknowledged that “reaching one hundred percent will not mean anything if the Russians cut off the supply.” He also said that Algeria, where President Emmanuel Macron paid an official visit last week, “is likely” to increase its gas shipments to France, which currently account for around 8% of French gas imports. France consumes a lot of gas to produce electricity, Véran explained, and electricity demand soars in winter due to heating.

The problem is complicated in France because half of the 54 French nuclear reactors are currently stopped due to refueling processes or corrosion problems in the cooling circuits. On this matter, he pointed out that the public company EDF, owner and operator of the nuclear park, “has committed itself to being able to reach the level of electricity production normally foreseen.”


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