Nord Stream 1 back in operation tomorrow?

Shipments of Russian gas via Nord Stream 1 are expected to restart on Thursday after regular maintenance is completed, two sources familiar with the export plans told Reuters.

The gas pipeline, through which more than a third of Russian natural gas is delivered to the European Union, did not work for ten days due to regular annual maintenance.

The sources, who spoke on condition of anonymity because of the sensitivity of the subject, told Reuters the pipeline would start operating on time, but at a reduced capacity from the roughly 160 million cubic meters per day it normally delivered. Energy giant Gazprom, which is controlled by the Kremlin, reduced gas exports via that route to 40 percent of capacity last month, citing a delay in returning a turbine serviced by Siemens in Canada.

"They (Gazprom) will return to the level recorded before July 11," said one of the British agency's sources, referring to the volumes of gas expected to arrive via Nord Stream 1 from Thursday.

The benchmark Dutch monthly contract TRNLTTFMc1 fell 3% after Reuters reported supplies would resume on Thursday.

Earlier yesterday, the value of the contract rose after the Wall Street Journal reported that the European Commission does not expect to restart the pipeline after maintenance.

Nord Stream 1, which stretches across the Baltic Sea to Germany, has been in focus since Russia sent troops into Ukraine on February 24 as part of what Moscow calls a "special military operation".

The West accuses Russia, the world's largest gas exporter and second largest oil supplier, of using its energy reserves as a tool of intimidation.

Russia has rejected the accusations, claiming it is a reliable energy supplier.

In a letter dated July 14, however, Gazprom said it was retroactively invoking "force majeure" for supplies from July 14, a legal clause that means it cannot guarantee gas deliveries due to extraordinary circumstances.

The "Komerasnt" newspaper announced on Monday, citing knowledgeable sources, that on July 17, Canada sent a turbine for North Stream 1 to Germany by plane after the repair was completed.

Siemens did not want to comment on these allegations to Reuters. One of the sources told Reuters yesterday that the turbine will probably be installed by July 21.

Germany's economy ministry said on Monday it could not provide details on the turbine's location.

However, the spokesman of the ministry said that the turbine was a replacement part that was supposed to be used only from September, which means that its absence cannot be the real reason for the reduction of deliveries before servicing.