A shock for Austria and Slovakia: Bloomberg detailed the consequences of a possible halt in gas transit through the ‘Sudzha’ station

The Sudzha station, the capture of which was confirmed by Ukrainian forces to the Washington Post via the Ukrainian President’s Office, is part of the last remaining route for the Russian gas pipeline to Europe. Gas flows through this transit point are still ongoing.

This is reported by Bloomberg.

After the 2022 crisis, Europe did everything possible to break away from Russian pipeline gas, including increasing imports of liquefied natural gas (LNG). However, some countries still depend on pipeline supplies, making their economies vulnerable to sudden disruptions.

According to James Waddell, head of European gas and global LNG at Energy Aspects Ltd., “an immediate halt in flow would result in a significant loss of supply. This would lead to a reduction in stock levels by the end of October.”

“While the upcoming winter can still be managed without dangerously depleting reserves, replenishing them to adequate levels by 2025 will be very challenging,” he added.

The transit agreement between the two countries expires at the end of this year, meaning flows are supposed to stop. However, in a sign that the fuel remains important to the continent, European officials are in negotiations to try to continue pipeline gas supplies after the agreement expires, although it is unclear where replacement fuel might come from.

A sudden and premature cessation of supplies would be a shock for countries like Slovakia and Austria, which currently depend on these supplies, and could lead to increased gas prices for companies and consumers.

Dutch month-ahead futures, the benchmark for European gas, have risen more than 40% since early April. As of 4:16 PM in Amsterdam, the contract was trading 2.7% higher at 39.46 euros per megawatt-hour.