29.01.202511:10 Analisis Forex & Kajian: Gas market still trading lower

As it was reported yesterday, Nord Stream 2 AG received approval from Danish authorities to carry out preservation work on the damaged gas pipeline.

As part of this process, special plugs will be installed on exposed sections of the pipeline to prevent saltwater intrusion and gas leaks into the atmosphere. The work is expected to take place in the second or third quarter of 2025, lasting approximately two to three weeks.

The installation of these plugs represents a crucial step toward ensuring environmental safety. Saltwater can cause corrosion and deterioration of the pipeline, potentially leading to accidents and leaks. This measure aims to reduce risks and extend the infrastructure's lifespan significantly. The first stage will involve thoroughly inspecting the pipeline to identify problem areas and determine optimal locations for the plugs. Following this, state-of-the-art equipment and technologies will be used to complete the installation process.

Background on Nord Stream 2

The Nord Stream 2 pipeline, designed to transport 55 billion cubic meters of gas per year, connects the Slavyanskaya compressor station in Russia's Leningrad region to the German coastline. However, German authorities suspended the certification of the project. Besides, the US sanctioned Nord Stream 2 AG, although both pipeline strings had been filled with gas and were ready for operation. One of these strings was damaged by powerful explosions in September 2022.

Germany's growing demand for Russian LNG

Meanwhile, Germany's demand for Russian LNG via European ports continues to rise, as reported by the Financial Times. Despite officially abandoning direct purchases of Russian fuel, Berlin still imports solid volumes of Russian liquefied natural gas through other EU countries. While maintaining its official stance against direct Russian energy imports, German companies are actively seeking alternative supply routes, utilizing repackaging and reverse flows from other European nations.

This has led to a complex network of energy trade, where political and economic interests run parallel. Notably, Dutch and Polish ports have become key transit points for Russian LNG. Thus, Germany is balancing its energy strategy—ensuring a stable and reliable energy supply while avoiding direct financial interactions with Russia. This also indicates that demand for Russian gas in Europe remains strong.

According to a report by Belgian, German, and Ukrainian NGOs, Germany's national energy company Sefe purchased 58 shipments of Russian LNG via the French port of Dunkirk last year—six times more than in 2023.

Technical outlook for natural gas

For natural gas (NG) buyers, the key focus is on reclaiming the 3.422 level. A breakout above this level could open the door to 3.567, followed by the larger target of 4.734, with the ultimate target at 3.915.

In a correction scenario, the first support level lies at 3.268. A breakdown below this level could quickly push the instrument down to 3.104, with the final downward target at 2.922.