Nord Stream 2 splits EU

At a summit last week, the Nord Stream 2 pipeline project caused a dispute between Russia and Europe, where only Germany and the Netherlands supported the project.

The Nord Stream 2 intends to build on the existing Nord Stream pipeline, which delivers Russian natural gas to Germany via the Baltic Sea. The US$11 billion expansion project would double the pipelines current 55 billion m³/y capacity.

Importantly, the pipeline project will see Ukraine bypassed on the transportation route after its past dispute with Russia. The Nord Stream 2 pipeline project also intends to bypass the three Baltic countries and Poland.

Amos Hochstein, the US special envoy for international energy affairs stated: “All I see is an overarching political agenda to get rid of Ukraine as a transit country at all cost, no matter what the financial cost is.”

Officials have stated that it would be wise to wait for regulators to rule on the project before investing. However, Gazprom argues that if the EU cancel the project, its oil and gas supply would dwindle and thus only hurt Europe.

"The sides have reached considerable progress in terms of legal, technical, economic, and financial aspects of this agreement. Failing to implement it now would be a shot in one's foot from the side of whoever would want to do it. This is about Europe's energy balance, safeguarding security of supplies, these are most important questions," stated Russian Economy Minister Aleksei Ulyukayev.

Richard Sarsfield-Hall, Senior Principal at Consultancy Poyry (which advises energy firms) stated: “The European Commission is certainly raising far more issues than for the original Nord Stream. The financial community may take some persuading that the project is viable."

Edited from various sources by Stephanie Roker

Sources: Sputnik News, OilPrice, Radio Free Europe Radio Liberty, Rigzone

Read the article online at: https://www.worldpipelines.com/project-news/23122015/nord-stream-2-splits-eu/