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ENERGY

Gas flow to Denmark continues after Russia cuts supply

Denmark is still receiving a gas supply via Germany as of Wednesday after Russian supplies to Danish company Ørsted were cut.

gas cooker
Denmark's gas supplies are in no immediate danger of running dry despite Russian state gas firm Gazprom cutting sales to Danish company Ørsted. File photo: Liselotte Sabroe/Ritzau Scanpix

Gas is still being delivered to Denmark despite the decision by Russian state gas company Gazprom to no longer send gas to Denmark’s energy company Gazprom.

News wire Reuters reported that Denmark is still receiving gas based on data from operator Energinet.

Ørsted earlier stated that Gazprom Export would cut gas supplies to Denmark from June 1st after the Danish company refused to pay in rubles.

The Danish company had anticipated the move and had previously said it was filling up its storage facilities in Denmark and Germany to secure gas supplies to their customers.

“Since there is no gas pipeline going directly from Russia to Denmark, Russia will not be able to directly cut off the gas supplies to Denmark, and it will thus still be possible for Denmark to get gas,” Ørsted said in Tuesday’s statement.

READ ALSO: Russia stops gas sales to Denmark

The director of the Danish Energy Agency (Energistyrelsen), Kristoffer Böttzauw, said the Gazprom decision did not mean Danish companies and households would suddenly find themselves without gas.

“This does not have a huge meaning for supply security at the moment. That is currently good,” he said to broadcaster DR.

“Gas is still coming to Denmark from northern Germany. So we are actually in a robust situation,” he said.

“25 percent of our gas consumption can be covered by biogas, which we can produce ourselves, and we have a lower gas consumption than many other European countries,” he said.

Denmark is unlikely to face supply problems provided the European gas market continues to function as it is currently doing, the Energy Agency director said.

“As long as things continue as they are now, we expect there still to be gas available to buy and that Danish customers will be able to get the gas they want,” he said.

Denmark is not the only country to see its gas deal with Russia broken off.

On May 21st, Russia halted supplies to its neighbour Finland — which has angered Moscow by seeking NATO membership — after energy group Gasum also refused to pay in rubles.

Moscow had already cut off Poland and Bulgaria.

And on Tuesday, the partly state-owned Dutch energy firm GasTerra said Gazprom had suspended its gas supplies for the same reason.

The Russian demands for payment for gas in rubles is considered to be a measure intended to buttress the currency, which has been weakened by sanctions following the invasion of Ukraine.

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ENERGY

Danish energy company suspends fixed rate contracts

A local Danish energy provider has suspended fixed rate contracts with private and business customers.

Danish energy company suspends fixed rate contracts

Recent months have seen both households and companies in Denmark suffer from drastic increases in the price of electricity. The effects are now impacting electricity customers who signed deals to protect themselves against price changes, broadcaster DR reports. 

Electricity provider SK Energy, which is located in the Zealand town of Slagelse, made the decision to suspend fixed rate business and private contract in light of rocketing electricity and gas prices, DR writes.

The decision was described as regrettable but necessary by the company’s CEO Henrik Birch.

“This is a highly unusual situation and I can only deeply apologise for us doing this. But I think we have to do it because we don’t know what will happen this coming winter,” Birch told DR.

The CEO also said he understands customers who feel let down after signing fixed rate contracts to protect themselves against price changes, DR writes. He added he hoped they would understand the nature of the situation.

The changes take effect three months from now.

The average price of electricity in Denmark was in May reported to have climbed 18 percent from the last quarter of 2021 to the first of 2022.

Several factors are behind the upward trend in the price of electricity, but the primary reason is the cost of natural gas, which has multiplied since late 2021. That has resulted in higher overheads for electricity suppliers. Gas supplies from Russia to Europe have meanwhile broken down following the Russian invasion of Ukraine.

READ ALSO: ‘Shop around’: Danish agency as electricity prices climb 18 percent in three months

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