How trouble at Yamal-Europe gas pipeline can worsen energy crisis

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How trouble at Yamal-Europe gas pipeline can worsen energy crisis

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 How trouble at Yamal-Europe gas pipeline can worsen energy crisis
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Highlights 

  • Yamal-Europe gas pipeline transports Russian gas from the huge gas fields of the Yamal peninsula and western Siberia to Europe.
  • Belarusian president is threatening to cut gas deliveries to Europe as a retaliatory measure against any latest sanctions by the EU.
  • A supply chain disruption is bound to further worsen the existing energy crisis.

Owned by Gazprom, Russia’s state gas company, the Yamal-Europe gas pipeline is used to transfer Russian gas from the huge gas fields of the Yamal peninsula and western Siberia to Germany and Poland. The 2,600-mile-long pipeline reaches both these countries via Belarus. While it doesn’t directly bring gas for other European countries, it fills the giant gas storage facilities in Germany, and this gas is further forwarded across the continent.

How trouble at Yamal-Europe gas pipeline can worsen energy crisis

 

The pipeline is very important for Europe as Russia is its largest supplier of gas, and the gas transported through the Yamal pipeline accounted for a fifth of the total gas imports by Europe last year, thus making it very important to sustain Russia’s gas revenues as well.

The pipeline has been in news due to the threat of cutting gas deliveries to Europe by Alexander Lukashenko, president of Belarus, as a retaliatory measure against any latest sanctions by the EU. This is bound to increase the upward pressure on the already rising gas prices ahead of the upcoming rough winters.

With increasing demand for fossil fuels across the globe, gas prices are already hitting record highs in Europe. A supply chain disruption is bound to further worsen the existing energy crisis, which will prove to be disastrous for households as well as businesses that are already struggling with soaring energy bills and rising inflation.

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Let’s take a look at some of the UK energy stocks which may be impacted by the supply chain disruptions.

Royal Dutch Shell Plc (LON: RDSA)

Royal Dutch Shell Plc, also called as Shell, current market cap of the FTSE100-listed company stands at £68,277.44 million, making it one of the largest companies listed on the LSE. It gave a return of 38.18% in 1 year. Royal Dutch Shell Plc’s shares were trading at GBX £1,638.20 at 10:09 AM on 12 November 2021 (GMT).

BP plc (LON: BP)

London-headquartered BP plc is a constituent of the FTSE 100 index. Its current market capitalisation stands at £766,607.86 million and it has given a return of 40.70% in 1 year. BP plc’s shares were trading at GBX 341.30 at 10:12 AM on 12 November 2021 (GMT).

RELATED READ: 5 best renewable energy stocks to buy in the final quarter of 2021

TotalEnergies SE (LON: TTE)

TotalEnergies SE is based in France and it is also one of the seven oil supermajors. Its current market capitalisation stands at £99,277.84 million, and it has given a return of 33.57% in 1 year. TotalEnergies SE’s shares were trading at EUR 43.95 as of 11 November 2021.

Ceres Power Holdings plc (LON: CWR)

Ceres Power Holdings plc’s current market capitalisation of the AIM-listed company stands at £2,176.28 million, and it has given a return of 54.94% in 1 year. Ceres Power Holdings plc’s shares were trading at GBX 1,160.00 at 10:16 AM on 12 November 2021 (GMT).

Energean PLC (LON: ENOG)

Energean PLC is a listed on FTSE 250 of LSE and Tel Aviv Stock Exchange. Its current market capitalisation stands at £1,600.20 million, and it has given a return of 27.26% in 1 year. Energean PLC’s shares were trading at GBX 887.00 at 10:19 AM on 12 November 2021 (GMT).

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