Nord Stream 2: Gas prices soar as Germany suspends approval for pipeline

The German energy market regulator said: in a statement that it could not certify Nord Stream 2 as an independent operator because the company was established in Switzerland, not Germany.

“After a thorough investigation of the documentation, the [regulator] concluded that it would be alone possible certify an operator of the Nord Stream 2 pipeline as die operator was organized in a legal form under German law,” according to the German regulator.

European gas futures prices rose met 10%, piling up on the pain for companies and households already pay a lot higher bills. Leading energy traders have already warned of the risk of rolling power outage in Europe in the event of a colder than average winter and some analysts say the suspension of Nord Stream 2 certification means it now won’t begin commercial operations for the middle of 2022 at the earliest.

“Nord Stream 2 is the pipeline die the offer may change game in Europe and tip the scales, so delays in its use means the current tight throttle market the conditions will last all winter,” says Carlos Torres Diaz, head of gas and power markets at Rystad Energy.

The European Union gets about 40% of it is imported natural gas from Russia. north stream 2, die Ukraine bypasses and Russia connects directly to Germany, was completed in September despite years of opposition of countries including the United States, die warned it would increase Moscow’s influence in Europe.

Risk of ‘rolling black-outs’

British Prime Minister Boris Johnson said on Monday that the European Union faced “a choice” between standing with Ukraine of the approval of Nord Stream 2.

“We hope that our [European] friends may recognize that there will soon be a choice between one day mainlining more Russian hydrocarbons in huge new pipelines, and paste; up for Ukraine and standing up for the cause of peace and stability,” Johnson said in a speech in London.

Russia denies withholding gas from Europe this year in to gain political influence, but deputy prime minister Alexander Novak said: last month that “early completion” of the certification” for Nord Stream 2 would help “cool off the current situation.”
80 million European households struggle to keep warm.  Rising energy costs will problem worse

Natural gas prices have skyrocketed as a result year in Europe, where fuel plays an essential role role in power generation and home heating. Leading industry experts were: already warning of the risk of shortages this winter, before Tuesday news.

“Honestly, we don’t have enough gas at the moment. We don’t store” for the winter period,” Jeremy Weir, CEO of energy trading company Trafigura, told a conference hosted by the Financial Times. “So that’s why there’s a real worry there over. . . if we have a cold winter, we can roll blackhave outs in Europe.”

Ukraine warns of Gazprom ‘tricks’

The German energy regulator said Nord Stream 2, which is owned by the Russian state-owned company Gazprom, planned to create a German subsidiary to own and operate the German portion. of the pipeline. As soon as the main assets and personnel have been transferred to the subsidiary, and provided it complies with all relevant legal requirements, the certification process can be resumed, it is added.

Ukraine welcomed Germany’s decision to set the approval process on delay. But it urged the West not to fall for what it called “Gazprom’s tricks” in announcing the formation of a German subsidiary.

“This is a mockery” of European rules. This does not match met the ghost of the letter of European legislation on gas pipeline certification,” Yuriy Vitrenko, chief executive of Ukrainian state energy company Naftogaz in a Facebook post confirmed to CNN by company press office.

“In particular, we call on The United States government sanctions under US law on the Nord Stream 2 operator, die Gazprom claims to be creating. This new sanctions should last at least until Russia stops using gas as a weapon and actions in agreement with European rules,” he added.

— Matt Egan, Anna Cooban, Chris Liakos and Julia Horowitz contributed to this report.

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