French energy company Engie announced on 30 August that Russian gas monopoly Gazprom will further reduce gas deliveries to Europe, with the Russian company citing a “disagreement between the parties on the application of contracts.”
Deliveries of Russian gas to the European continent have already declined significantly since the start of the war in Ukraine, with Russia now exporting just 1.5 terawatt-hours per month, Engie stated in a press release. In July, the share of Russian gas in Engie's gas portfolio constituted just 4%.
Engie stated that it has already enacted measures to continue supplies to its customers in the event of a complete interruption to Russian gas supplies.
Hitting households
In a press release from 29 July, Engie stated that it is implementing a series of measures to support its clients and the EU economy. In France, Engie is providing an average of €100 in energy vouchers to 880,000 customers and has created a €60 million fund for small and medium enterprises.
In Belgium, the company states that it “contributes significantly to the tax effort” and has offered to stagger payments for customers.
Gazprom has been accused of deliberately frustrating the supply of natural gas in Europe, effectively “weaponizing” energy. Russia has significantly reduced the delivery of gas to Europe through the Nord Stream pipeline, citing technical issues and disputes over contracts.
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Europe is trying to wean itself off Russian gas, both in order to liberate itself from Russia's energy influence and to prevent the sale of gas from funding Russia's war efforts in Ukraine. Most EU Member States have committed to a 15% reduction in demand for gas.
Germany has already started the first stage of its gas emergency plans and there are growing calls for Belgium to do the same. In the case of a total shut-off of Russian energy, consumers may be asked to undertake energy-saving measures and some customers may even be cut off from supply.
In preparation for the winter, Europe is rushing to fill its underground storage of natural gas. France has already saved up enough gas for around a quarter of the country’s annual consumption. While Belgium has filled its gas storage by 85%, this accounts for just 4% of annual consumption.
