Russian Gas Flows to Europe Unaffected After Pipeline Blast

(Bloomberg) -- Russian gas flows are continuing via alternative links after an explosion occurred at a pipeline that goes to Ukraine for further supplies to Europe.

“Transportation of gas is provided to consumers in full through parallel gas pipelines,” the local unit of Russian gas producer Gazprom PJSC said in a statement. 

The explosion happened at a section of the Urengoy-Pomary-Uzhgorod link in Russia’s region of Chuvashia. A fire was extinguished after the incident, which reportedly happened during scheduled maintenance, according to local emergency services.

The Urengoy-Pomary-Uzhgorod is one of the oldest gas conduits linking Russia and Europe through Ukraine. Gas flows via Ukraine are closely watched by the market as it remains the last route delivering Russian fuel to western Europe amid deteriorated relations over the Kremlin’s war in Ukraine. 

Dutch front-month gas futures, Europe’s benchmark, briefly surged as much as 6.6% on the explosion reports before erasing those gains. The contract traded 1.6% lower at €106.78 a megawatt-hour by 3:25 p.m. in Amsterdam, following the statement from Gazprom’s unit. 

Gas nominations for Wednesday transit via Ukraine so far remain unchanged, according to the nation’s grid data. 

--With assistance from and .

(Updates throughout with a statement from Gazprom’s unit)

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