America will force Germany to launch Nord Stream 2

MOSCOW, September 21 – PRIME, Andrey Karabyants. Despite assurances from the German authorities that the Nord Stream 2 project is closed, its operator, Nord Stream 2, is in no hurry to go bankrupt. This is due to the fact that the gas pipeline may be needed in the coming winter, because the situation with gas supplies to Europe is becoming critical.

The authorities of the EU and most European countries do not cease to accuse Moscow of using gas as a weapon. Russia in the West is considered an unreliable energy supplier. However, Europe can get the required amount of gas from Russia if it launches the Nord Stream 2 gas pipeline with a capacity of 55 billion cubic meters. m.

The pipeline was completed in September 2021 despite opposition from the United States and some Eastern European countries. Nord Stream 2 operator company Nord Stream 2 (100% owned by Gzaprom) – carried out all the necessary tests of the gas pipeline and prepared it for operation. But the Federal Network Agency (BNetzA) Germany, under pressure from the new coalition government of Germany, refused to certify Nord Stream 2, without which it is impossible to start gas supplies.

After the start of a special operation to denazify Ukraine, Berlin announced the closure of the Nord Stream 2 project. Registered in Germany Nord Stream 2 was forced to declare bankruptcy. However, court hearings on this topic in a Swiss court are constantly postponed. The fact is that the gas pipeline may be needed next winter, because there will be an acute shortage of gas in Europe.

Russian President Vladimir Putin has repeatedly stated Russia’s readiness to launch Nord Stream 2 if necessary. This was also confirmed on Monday by Russian Ambassador to Germany Sergei Nechaev.

RESERVES WILL NOT HELP

On Monday, German Economics Minister Robert Habeck said the country’s underground gas storage facilities (UGS) are almost 90% full. The storage facilities are filling up ahead of schedule, so Germany will no longer buy gas at any price, he said. According to Gas Infrastructure Europe, On September 18, European UGS facilities were filled to 85.6%. UGS facilities are pumping fuel ahead of schedule, but accumulated reserves account for only 20%-25% of annual gas consumption in the EU.

Former chapter BNetzA Klaus Müller said gas reserves in Germany, Europe’s leading economy, could only meet the country’s needs for two to two and a half months during the upcoming heating season, if Russia completely cut off supplies.

On August 31, Gazprom, for “technical reasons”, completely stopped deliveries via Nord Stream, a gas pipeline with a capacity of 55 billion cubic meters per year, laid across the Baltic Sea directly from Russia to Germany. The shutdown of Nord Stream has exacerbated the energy crisis in Europe. The EU leadership is sure that in this way Moscow responded to the sanctions imposed by the collective West against Russia after the start of a special operation to denazify Ukraine.

Müller said last week that gas supply problems could arise in all German states next winter.

“If the winter is very cold, then we will have problems,” Muller said in an interview with a business publication. Handelsblatt.

The desire to accumulate the necessary gas reserves cost Germany dearly. More and more signs indicate that the country’s economy is already in recession, but officially Berlin does not recognize this. However, in the latest monthly report Federal BankGermany’s central bank, says that amid the energy crisis, the recession will deepen as winter approaches and become visible to all.

AMERICA FAILED

Stocks in underground storage facilities, necessary for the heating season, were accumulated thanks to large-scale supplies of American LNG. According to the agency Refiniv, in January-July 2022, US LNG exports reached a record high of 57 billion cubic meters. m. Of this volume, 39 billion cubic meters. m or 68% was delivered to Europe. For the whole of 2021, US LNG supplies to the European market amounted to 34 billion cubic meters. m.

However, gas demand within the United States is growing rapidly, exceeding the record levels that were before the outbreak of the coronavirus pandemic. Shale gas companies cannot increase production to meet the growing demand at home and abroad – primarily in Europe.

In addition, the US also needs to build up sufficient gas reserves before the start of the winter season. In the first half of September, stocks in US UGSFs were at the lowest level compared to the same period over the past 12 years.

U.S. electricity demand is expected to be record-breaking this year, despite a decline in GDP in the first two quarters. In winter, the demand for electricity reaches peak values. In addition, the United States lacks alternative energy sources: many coal-fired thermal power plants have been decommissioned, drought in many regions of the United States has led to a drop in electricity generation at hydroelectric power plants.

In this regard, US consumers are growing dissatisfied with the growth of LNG exports and rising gas prices in the domestic market.

“We appreciate that the Biden administration is supporting European allies and increasing fuel supplies to Europe. The same should be done for New England,” says a letter sent by a group of senators from New England (a region in the US Northeast) to the secretary of the department USA energy engineer Jennifer Granholm. This was previously reported by Financial Times.

Moreover, the senators called on the White House to provide American consumers with gas in the required volume by reducing LNG exports.

FAITHFUL UKRAINE

In Europe, they fear that Russian gas supplies to Europe may be reduced in the event of an escalation of hostilities in Ukraine. Now “Gazprom” sends to Europe through the territory of Ukraine over 42 million cubic meters. m/day According to the current contract between Gazprom and Naftogaz Ukrainy, transit through Ukrainian territory should be about 109 million cubic meters. m/day

Now deliveries are carried out only through the Sudzha gas measuring station (GIS). Another GIS “Sohranovka” is currently not used. The Ukrainian side refuses to accept gas through this GIS, since it is not controlled by the troops of the Kyiv regime.

In addition, Ukraine did not accumulate sufficient gas reserves before the heating season. According to the latest data, about 13.4 billion cubic meters have been accumulated in Ukrainian underground storage facilities. m of gas. Initially, it was planned to accumulate 19 billion cubic meters. m, but then the volume of reserves was reduced to 15.5 billion cubic meters. m. In Kyiv, they believe that this volume will be enough to pass the heating season due to a massive reduction in demand for gas and other energy sources from the industry. But even this volume is not possible to accumulate due to high gas prices in Europe. According to the deputy of the Verkhovna Rada of Ukraine Oleksiy Kucherenko, UGS facilities will accumulate a maximum of 14.5 billion cubic meters by November. m. of gas.

In the event of an acute shortage of gas, Ukrainian deputies propose to withdraw the gas of the “aggressor country” from the transit pipe. This may complicate the situation in the European gas market, but the Kyiv regime, which enjoys the full support of Washington, is confident that it will get away with it. A number of experts in the West are confident that Russian gas supplies through Ukraine will stop in winter.