Gazprom confirms suspension of gas supplies to Netherlands over refusal to pay in rubles

MOSCOW. May 31 (Interfax) - Gazprom has confirmed that it has suspended gas supplies to the Netherlands over the country's refusal to pay for gas according to new rules.

"Gazprom has completely halted gas supplies to GasTerra B.V. (Netherlands) due to non-payment in rubles. As of the end of the working day on May 30, Gazprom Export had not received payment for gas supplies in April from GasTerra B.V. in accordance with Russian presidential decree No. 172, dated March 31, 2022. Payments for gas supplied since April 1 must be made in rubles using new details, of which counterparties were informed in good time," the Russian gas giant said.

The suspension of supplies means that in the period between now and October 1, 2022, when the contract expires, the buyer will not receive about 2 billion cubic meters of gas. GasTerra has not said how this might affect the European market.

In order to cover the lost Russian supplies, Dutch gas transport company Gasunie is rushing to build a liquefied natural gas (LNG) terminal at the Eemshaven port in the province of Groningen. Two floating regasification facilities have already been leased for it. The vessels, which will be able to receive up to 8 bcm of gas per year, are expected to go into operation in the fall.

The first LNG terminal in the Netherlands, Gate LNG went into operation at the Rotterdam port in 2011. It handled 8 bcm of gas in 2021.

The Netherlands consumed 36.6 bcm of gas in 2020, 11.2 bcm of which was supplied by pipeline from Russia, according to BP reference materials. Gazprom Export's pipeline gas supplies to the country totaled 11.81 bcm in 2020, including deliveries to GasTerra, on short-term contracts, to subsidiaries and on the electronic trading platform.