LONDON’S BUSINESS NEWSPAPER
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EU LEADERS RACE FOR GAS SUPPLY
MONDAY 25 JULY 2022
ISSUE 3,784
CITYAM.COM
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DOVER AND OUT Delays cleared for now as blame game begins
GOVERNMENTS SHORE UP SUPPLIES AHEAD OF WINTER NICHOLAS EARL EUROPE’s desperate scramble to shore up gas supplies in case Russia turns off the taps became increasingly urgent over the weekend, with the EU seeking support from its allies to meet its energy needs. The National Grid asked for emergency permission yesterday to pump more gas into the troubled continent via its UK-Netherlands pipeline, following requests from the Dutchbased operator. It wants to increase the pressure on the 235km pipeline between both countries, as first reported in The Telegraph, so the pipeline can export 34 per cent more gas than normal. Meanwhile, the EU held talks with Nigeria about boosting liquefied natural gas volumes from the country, to stave off the chilling prospect of rationing and blackouts this winter
when demand is at its peak. Key Russia-Germany pipeline Nord Stream 1 returned to action last week after ten days of maintenance this month, but gas flows have been slashed 60 per cent – in retaliation to Western sanctions following Russia’s brutal invasion of Ukraine earlier this year. The Kremlin has denied foul play, but state-backed energy giant Gazprom has already cut off gas supplies into 12 EU member states which refused to pay for gas supplies in roubles in line with new laws imposed by President Vladimir Putin. Europe typically relies on Russia for 40 per cent of its gas imports, however the shortfall in recent weeks has triggered emergency plans across the bloc, including in Germany and Austria. The EU is pushing member states to ramp up storage to 80 per cent by Oc-
tober – with storage levels sitting at 65 per cent yesterday. Its executive arm, the European Commission, also called for countries to cut their gas usage 15 per cent from August to March. However, this proposal is being contested by multiple member states – including Spain, Portugal and Greece – concerned about inflicting pain on households to protect countries with larger industrial bases. While the UK only relies on Russia for around four per cent of its gas imports, it is still vulnerable to price spikes with disruptions driving up domestic prices. Natural gas prices remained historically elevated yesterday at £3.11 per therm, compared to 55p this time last year. Soaring wholesale costs have pushed businesses to the brink and seen UK consumers battered by sharply rising bills.
STEFAN BOSCIA UK AND French politicians were last night blaming each other for chaos at Dover over the weekend. The busy port was backed up with thousands of drivers for most of the weekend, although ferry crossings were running trouble-free by yesterday evening. The UK government is blaming the chaos on French authorities for not stationing more border guards in Dover as the summer rush starts.
Paris has said that there is a requirement for more rigorous passport checks post-Brexit and that the UK’s new traffic management system was not working. The UK’s former ambassador to France Lord Peter Ricketts told The Observer that the “shortage of French border force officials is a short-term, tactical problem”. “The long-term, serious issue is that this is the first time we’ve seen the full pressure on the border after Brexit,” he said.
Deal on table for TfL but no sign of improved relations between City Hall and SW1 JAMES SILVER TRANSPORT FOR LONDON (TfL) bosses were this weekend crunching the numbers on a longawaited funding proposal from Whitehall which could give the capital’s network some muchneeded financial certainty.
TfL and the Mayor of London have been at loggerheads with the Department for Transport for more than two years over a series of emergency cash injections to the transit system, with London bosses so far only able to secure short-term capital injections as opposed to long-term funding.
Mayor of London Sadiq Khan said “sight of the offer” was “welcome” but “it’s in no-one’s interests to have conditions that could damage TfL”. Previous bailouts have had Mayor of London Sadiq Khan welcomed the progress
strict cost reductions written into them, meaning a number of improvement and maintenance projects have already been kicked into the long grass. TfL needs the funding to avoid a
‘managed decline’ scenario including service cuts after its revenues were battered by lockdown restrictions. Transport secretary Grant Shapps said Khan had “failed to provide required info” during the process but the “ball is now firmly in the Mayor’s court”.
INSIDE REVOLUT’S GREAT RESIGNATION P3 LATTES LURE BACK WORKERS P6 SUNAK AND TRUSS SPAR FOR VOTES P7 AVIATION ROW TAKES OFF P8 OPINION P14 SPORT P19