Engie Says Gazprom Will Reduce Gas Deliveries Starting Tuesday

Russian energy giant Gazprom PJSC (OTC:OGZPY) has notified Engie SA (EPA:ENGIE) that it will reduce gas deliveries from Tuesday due to disputes over some contracts, signaling further tightness in Europe's energy supply.

The announcement follows French Prime Minister Elisabeth Borne's call on Monday for businesses to reduce energy use or face possible rationing this winter if Russia halts gas deliveries. "As previously announced, Engie has already secured its commitments to its customers and the volumes necessary to meet its own needs and has put in place various measures to significantly mitigate the direct financial and physical impacts that could result from the interruption of gas supplies by Gazprom (MCX:GAZP)," the company said in a statement on Tuesday. Gazprom's deliveries to Engie have been "significantly" reduced since the start of the war in Ukraine, with the latest monthly supply at around 1.5 terawatt-hours, the company near Paris added. This means that the group's total annual supply in Europe is over 400 terawatt-hours, it said. Gazprom plans to halt deliveries from the Nord Stream pipeline to Germany from August 31 for three days of planned maintenance. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!