OGZPY - European gas prices fall as Russia restarts Nord Stream pipeline

European natural gas prices fell on Thursday after Russia's Gazprom ( OTCPK:OGZPY ) restarted shipments through the Nord Stream pipeline after a 10-day shutdown for maintenance, providing some relief for Europe as it attempts to store gas before winter.

But gas flows began well short of capacity at just 30%, with orders indicating the link will operate at ~40% of capacity for the rest of the day, roughly the same as before the annual maintenance began.

According to Bloomberg, Dutch front-month futures, the European benchmark, fell as much as 6.5% at the open, later trading -4.2% at €148.50/MWh.

European Union policy makers have been preparing for the worst with a plan to curb gas consumption by 15% .

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Europe may face additional energy woes if there is a revival in China's demand for liquefied natural gas, Goldman Sachs analysts say.

Weaker LNG consumption due to coronavirus curbs has caused China to increase inventories, which allowed importers to capitalize on high prices by reselling cargoes and increasing the availability of shipments for European buyers, Goldman's head of natural gas research Samantha Dart told Bloomberg.

Gas shortages have already undermined the euro, which is now at parity with the dollar, and added to the risks of a looming European recession .

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