May 20, 2022

Fior Markets News Blog

Complete News World

What will be the future of the North Stream 2 gas pipeline during the Russia-Ukraine crisis?

Image source, Getty Images

Image title,

North Stream 2 gas pipeline

The project has come to light again after recent US warnings about the Nord Stream 2 gas pipeline.

The United States has said no plan has been reached between Russia and Germany.

At the same time, officials in Berlin said that the plan could be thwarted if Russia invaded Ukraine.

Western nations are trying to stop Russia’s possible attacks on Ukraine.

In such a scenario, the $ 11 billion project has become the main weapon for bargaining. What exactly is this plan, and how important is it?

Image source, Reuters

What is the North Stream 2 Case Pipeline?

The gas pipeline, about 1,200 km long, runs from western Russia to northeastern Germany via the Baltic Sea.

Through this project, the goal was to double the amount of natural gas going from Russia to Germany. Currently, gas from Russia to Germany passes through a North Stream pipeline built in 2012.

If the project is successful, the pipeline will supply 55 billion cubic meters of gas to Germany each year. The project is owned by the Russian state gas company ‘Gosprom’.

Work on the pipeline was completed in September 2021. But Gasprom is still awaiting the approval of European regulators before resuming gas supplies.

Image source, Getty Images

Why so much controversy about it?

According to critics, the pipeline is a weapon of Russia’s foreign policy. The United States, Ukraine and Poland have strongly opposed the plan.

Although Russia sends most of its gas to Europe via Ukraine, Nord Streams 1 and 2 do not pass through Ukraine.

This means that if the pipeline goes into operation, Ukraine will lose about $ 2 billion in “transportation costs”. It receives this amount because of the gas that now passes through its area. Ukraine says it was punished for its good relations with Western countries.

Poland is not happy about boycotting gas shipments from Russia to Europe. He wants the pipeline to go through him.

Image source, AFP

Why is this project so important?

The North Stream 2 gas pipeline project has been postponed due to concerns over Russia’s sanctions. Western nations will have to pay a heavy price for the attack with the help of this plan to pressure Russia not to invade Ukraine.

British Defense Secretary Ben Wallace has said the pipeline is a weapon that Western nations can use against Moscow. He said the pipeline was one of those weapons that would be useful in the recent crisis.

This pipeline is important for Russia because it allows gas directly to Europe without going to Ukraine. This will save on transportation costs to Ukraine.

Proponents of her case have been working to make the actual transcript of this statement available online. This will affect Russia’s income, but Europe will not have to depend on Russia’s energy.

Image source, AFP

What if it does not open?

Germany needed gas from this pipeline. This will help heat up 26 million homes in Germany and make it easier for Germany to switch to renewable energy.

German Finance Minister Robert Hebeck warned on Wednesday that “if sanctions are imposed, it will affect Germany’s economy.”

However, experts say that stopping the flow of gas from Russia to Europe via Ukraine poses great risks. Many countries have other options for gas distribution. For example, Germany can import gas from Norway, the Netherlands, the United Kingdom and Denmark.

However, Norway, the second-largest supplier of gas to Europe, says it is no longer difficult to supply natural gas to Europe. He said it could not compensate for the gas emitted from Russia.

On the other hand, the United States is also trying to find other options for supplying gas to Europe. Its attempt is to make a minimal impact on Europe if gas supplies from Russia are cut off.

But the challenges associated with natural gas transportation are no less.

Video title,

Troops are concentrated on the border between Russia and Ukraine.