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Russian pipeline that everyone is talking about

GP-Pipeline inspection gauge receiving station, view of Nord Stream 2 part of Lubmin landing area on the Baltic coast of Germany.

JOHN MACDOUGALL | AFP | Getty Images

Lubmin, Germany – A quiet place far away, but rich in energy. The Lubmin coastal region of northern Germany has one of the most controversial gas pipelines in the world.

Nord Stream 2 stretches 1,200 kilometers from Vyborg, Russia, through the Baltic Sea, to Lubmin, Germany, bypassing Ukraine and Poland.

The gas pipeline is complete, but awaits regulatory approval before it begins supplying Europe with 55 billion cubic meters of natural gas each year.

According to Gustav Gressel, a senior policy fellow of the European Council on Foreign Relations, a think tank, it is only a matter of time before German energy regulators give approval.

With growing geopolitical tensions, this challenge is not so easy.

Some European parliamentarians are strongly opposed to the deal and have not sought approval from regulators.

“I want to get out of this [Russian energy] Molten Petersen, a Danish member of the European Parliament, told CNBC’s “Street Signs Europe” on Friday.

What is at stake?

Nord Stream 2 brings a variety of geopolitical aspects. On the other hand, the United States has always opposed the pipeline, saying that Europe is becoming more dependent on Russia.President Joe BidenHowever, lawmakers from both parties have criticized the administration for not doing enough to cancel the project.

Most of the natural gas that flows into Europe already comes from Russia. By 2020, this will represent approximately 43% of total gas imports into the block, according to Eurostat.

Poland and Ukraine oppose the pipeline because of energy security concerns. For Kiev, there are concerns that pipelines could reduce the flow of natural gas through Ukrainian pipes, which in turn could reduce their income to a slumping economy.Critics also argue that the pipeline is incompatible with European climate goals and is likely to strengthen the Russian president. Vladimir PutinEconomic and political impact on the region.

Proponents of Nord Stream 2 argue that US opposition stems from the desire to sell more liquefied natural gas to Europe, so trading with Russia is seen as an obstacle to commercial interests.

For Putin and many German lawmakers, Nord Stream 2 is just a commercial transaction.

The Russian president told CNBC’s Hadley Gamble Wednesday that the project was “purely commercial” and an efficient way to supply natural gas to Europe.

Nord Stream 2 has a shorter route to Europe than the Ukrainian pipeline and is modern, so maintenance costs are low.

NS Treatise from the European Parliament “Estimate how much refurbishment [of Ukrainian pipelines] According to a 2017 KPMG survey, total replacement costs range from $ 2.5 billion to $ 12 billion, but can be as high as $ 17.8 billion. The total cost of Nord Stream 2 is estimated at around € 9.5 billion ($ 11 billion). , According to the same treatise.

Energy crisis

The debate over what to do with Nord Stream 2 has received more attention in recent weeks as energy prices have skyrocketed across Europe. Rising gas and electricity prices can put pressure on households and ultimately upset the economic recovery that has formed in recent months.

As a result, European leaders are under pressure to take steps to mitigate the impact.

Putin said his country could deliver more gas to the block if they requested. He denied the Kremlin using energy as a weapon against Europe In reports that Russia has withheld gas supplies to the region.

But the EU is uncertain about what to do. Increasing gas imports from Russia could provide short-term bailouts, but there are difficult questions about what to do in the medium to long term.

Efforts are being made across the EU to reach carbon neutrality over the next few years, raising the question of what energy mix European countries are looking for.

Some see fossil fuels, natural gas, as a way to reduce CO2 emissions on the road to carbon neutrality, while others argue that energy independence is the most important aspect. Therefore, nuclear and renewable energies are said to be options.

Russian pipeline that everyone is talking about

Source link Russian pipeline that everyone is talking about

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