OGZPY PJSC Gazprom (PK)

By Jaime Llinares Taboada

Gazprom PJSC will stop supplying gas to Dutch wholesaler GasTerra from Tuesday due to the latter's refusal to make payments in rubles.

Gas trader GasTerra said Monday that it has decided not to comply with Gazprom's payment requirements because doing so risks breaching European Union sanctions. The cessation means that around 2 billion cubic meters of contracted gas won't be delivered between now and Oct. 1, when the deal was due to end, it said.

"GasTerra has repeatedly urged Gazprom to respect the contractually agreed payment structure and supply obligations, but to no avail," the trading company said.

GasTerra warned that it is impossible to predict whether the European market can absorb this loss of supply without serious consequences.

In 2021 the EU imported 155 billion cubic meters of gas from Russia, around 40% of its total gas consumption, according to the International Energy Agency.

GasTerra is 50%-owned by the Dutch government--partially through its gas company Energie Beheer Nederland B.V. The remaining shareholding is owned by Shell PLC and Exxon Mobil Corp., with each holding a 25% stake.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

May 30, 2022 13:07 ET (17:07 GMT)

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