Record gas prices in Europe could hasten clearance for fuel supplies via Russia's Nord Stream 2 pipeline to Germany, analysts said on Sept. 14.
Russia’s Gazprom last week said it had finished construction of the pipeline and Germany’s energy regulator has said it has four months to complete operating certification after receiving all necessary documents.
The pipeline, which would help Moscow to bypass political foe Ukraine in transiting gas to European markets, doubles its annual gas export capacity via the Baltic Sea to 110 billion cubic meters, about half of Russia's total gas pipeline exports to the West.
Europe is hungry for the gas, particularly with prices in the region having hit record highs ahead of winter.
Spot prices in the Dutch TTF gas hub exceeded 66 euros per megawatt-hour, or more than $800 per 1,000 cubic meters, on Sept. 14 amid low levels of underground gas storage in Europe.
“The German regulator ... will probably try to issue all the necessary permits in the fastest possible way,” said Dmitry Marinchenko, a senior director at Fitch.
Gazprom said in August that Nord Stream 2 could deliver 5.6 billion cubic meters of gas by the end of the year.
The Bundesnetzagentur gas regulator’s website, which was updated on Sept. 13, said that the four-month period to certify Nord Stream 2 started on Sept. 8.
Alexei Grivach of the National Energy Security Fund, a pro-Kremlin think-tank, also said it was possible that German authorities will hasten clearance despite the resistance from the U.S. and some European countries.
“This will not be easy, taking into account the political environment ... but in order to stabilize the market the artificial barriers should be overtaken,” he said.
Nord Stream 2 has drawn criticism from the U.S. and Ukraine among others, with Washington saying the pipeline will increase Europe's reliance on Russian energy supplies.
Ukraine reiterated its stance on Sept. 14.
“This threatens the energy independence of many Eastern European countries and undermines Ukraine's security,” Energy Minister Herman Halushchenko said of the pipeline.
Russia, meanwhile, has said Nord Stream 2 is a commercial project that will strengthen Europe’s energy security.
Recommended Reading
Pinnacle Midstream Execs Form Energy Spectrum-Backed Renegade
2025-02-03 - Renegade Infrastructure, led by Permian-centric Pinnacle Midstream developers Drew Ward and Jason Tanous, have received a capital commitment from Energy Spectrum Partners.
Phillips 66’s NGL Focus, Midstream Acquisitions Pay Off in 2024
2025-02-04 - Phillips 66 reported record volumes for 2024 as it advances a wellhead-to-market strategy within its midstream business.
Hess Midstream Signs Deal to Repurchase $100MM of Class B Units
2025-01-14 - Hess Midstream said the repurchase is expected to result in increased distributable cash flow per Class A share.
Dividends Declared Week of Feb. 24
2025-03-02 - As 2024 year-end earnings wrap up, here is a compilation of dividends declared from select upstream and midstream companies.
Elliott Nominates 7 Directors for Phillips 66 Board in Big Push for Restructuring
2025-03-04 - Elliott Investment Management, which has taken a $2.5 billion stake in Phillips 66, said the nominated directors will bolster accountability and improve oversight of Phillips’ management initiatives.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.