HomeMediaLatest NewsIt won't be cheaper: the benefit of Nord Stream 2 has been proven in Europe

It won't be cheaper: the benefit of Nord Stream 2 has been proven in Europe

12 November 2020

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Deputy Principal Director on Energy Studies commented to News.ru on the prospects for completing the Nord Stream 2 project.

Germany needs Nord Stream 2 even if the demand for gas does not grow, says Aleksey Belogoryev, Deputy Principal Director on Energy Studies at the Institute for Energy and Finance. According to him, the pipeline will provide a gas surplus at the entrance to the German gas transmission system. This will maintain the country's energy security and promote lower prices.

The pipeline is beneficial to Germany, especially since the country is turning into a large gas distribution hub for the EU. It supplies gas to Northwest Europe and partly to Central Europe. If we predict an increase in demand for it in Germany, then there is no better option than Nord Stream 2 either. Production in Norway has stabilized and there are practically no growth prospects there. LNG is a good option, but it can only replace some of the pipeline gas.

There is more competition not in prices, but in costs at the European gas market, - that is, who is able to withstand relatively low prices. American LNG with gas prices below $ 4 per million BTU (British thermal unit - NEWS.ru) is practically unprofitable in Europe in terms of supply. And even at such a price, Russian gas feels quite confident, Aleksey Belogoryev noted.

It is possible to complete the gas pipeline under the new sanctions, Aleksey Belogoryev is sure. According to him, the possibility of insurance can be found in Russia, and certification - in Germany, which should not be affected by US restrictions.

These sanctions, like the previous ones, are more of a psychological nature. The previous ones might not have worked, there was a month of delay, but the Swiss company Allseas decided to immediately curtail the work. The current sanctions are also symbolic - they complicate, from a legal point of view, the life of Nord Stream 2 and contractors, but there is still more PR than real threats, the expert believes.

At the same time, the protracted pause in construction increases doubts about the successful completion of the project, Belogoryev said. According to him, time plays against Russia here. There are still more chances that Nord Stream 2 will be completed, but no one will give a full guarantee here, the expert summed up.
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