Nord Stream 2 is set to double Russian natural gas shipments to Germany
Gazprom, the Russian gas energy company has announced the completion of Nord Stream 2 natural gas pipeline from Russia to Germany which passes through Ukraine.
The U.S. $ 12 billion pipeline beneath the Baltic Sea is set to double Russian natural gas shipments to Germany, Europe’s largest economy. This needs to be certified by Germany’s regulator, a process that could take upto 4 months.
Work on the 1,225 kms (760 mile) pipeline took 5 years. German businesses invested heavily in Nord Stream 2 and former Chancellor – Gerhard Schröder is running the project. Germany’s Uniper and BASF’s Wintershall unit, other European companies including Anglo-Dutch Shell, OMV of Austria and Engie of France, also have stake.
Taking it to twitter, the official twitter m handle of Gazprom tweeted,
Nord Stream (formerly known as North Transgas and North European Gas Pipeline) is a system of offshore natural gas pipelines from Russia to Germany. It includes 2 lines running from Vyborg to Greifswald, forming original Nord Stream (Nord Stream 1), and two lines running from Ust-Luga to Greifswald, termed as Nord Stream 2. The Nord stream 1 is fully operational.
Germany’s government estimates that natural gas will continue to make a significant contribution to energy supply in Germany over the coming decades and it is more climate-friendly compared to other fossil fuels as it produces less CO2.
Ukraine fears that the Russian-led Nord Stream 2 gas pipeline will tighten Moscow’s grip over the region’s energy supply and strengthen its influence.
The Chancellor of Germany – Angela Merkel has said that Germany will impose sanctions on Russia if it uses the Nord Stream 2 gas pipeline against Ukraine. The President of Ukraine – Volodymyr Zelensky warned that the main risks after its completion will be borne by Ukraine and that the pipeline will also be dangerous for all of Europe. Merkel, who is set to step down in September 2021, assured Zelensky that these commitments of honouring the security of Ukraine will be binding upon the next Government.
Ukraine is concerned about what would happen after 2024 when the contract to deliver Russian gas to Germany through Ukrainian pipelines runs out. The loss of billions of dollars in transit fees would hit Ukraine’s economy hard. However, Merkel told him that the President of Russia – Vladimir Putin has promised her to provide more than a billion dollars to help expand Ukraine’s renewable energy sector.
The United States (U.S.) also feels the same and opposes the pipeline. Separately, Germany has also signed a deal with the United States (U.S.) to help Ukraine continue to receive transit fees once Nord Stream 2 becomes operational.
