Gazprom cuts gas deliveries to France’s Engie

The company did not specify the reason for the dispute, but did say it ‘had already secured the volumes necessary to meet its commitment towards its customers.’

French utility Engie announced that Russian energy giant Gazprom will reduce gas deliveries as of today over a contract disagreement.

The company did not specify the reason for the dispute, but did say it “had already secured the volumes necessary to meet its commitment towards its customers and its own requirements,” adding that measures were in place to reduce the potential “financial and physical impacts” of the disruption.

Emmanuelle Wargon, the head of France's energy regulatory commission, said today that the agency is “not too worried” about the supply squeeze, saying French gas reserves are now 91 percent full and should be entirely filled by the end of September or the beginning of October.

Russian gas deliveries to Engie have fallen to only 1.5 terawatt hours per month, Engie said. In 2021, Gazprom supplied 121 TWh of gas to Engie.

"Russia is using gas as a weapon of war," Agnès Pannier-Runacher, the energy transition minister, told France Inter radio.

Engie is holding talks with Algeria’s Sonatrach on alternatives to Russian gas.

President Emmanuel Macron plans to summon the country's Defense Council on Friday to tackle gas and electricity supplies, AFP reported.

Prime Minister Elisabeth Borne urged businesses on Monday to cut energy use cut this winter if Russia halts gas deliveries.

Gazprom has also cut deliveries to Germany on the Nord Stream pipeline to a fifth of their usual levels and plans to completely halt shipments from August 31 to September 2 while it performs maintenance on the pipeline.
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