Spiking gas prices in Europe could hasten Nord Stream 2 gas pipeline clearance
High gas prices in Europe could hasten the certification of the Russia-Germany Nord Stream 2 gas pipeline, analysts hinted on Tuesday. Despite the work on the twin pipeline having been completed, the German regulator said it would take up to four months to complete the certification process.
The gas regulating company, Bundesnetzagentur, indicated on their website as of Sept. 13 that the four-month period for the full certification of Russia's Nord Stream 2 gas pipeline began on Sept. 8. If the clearance process could go exactly for four months, then commercial operations could be launched by the end of this year.
A pro-Kremlin think-tank, Alexei Grivach from the National Energy Security Fund also echoed that German officials could hasten the clearance process despite the resistance they're facing from their allied European countries and the United States.
The Germany-Russia mega gas pipeline project has drawn criticism from the United States and Ukraine. According to the US, the Nord Stream 2 project would increase Europe's reliance on Russian gas supplies.
Ukraine Energy Minister Herman Halushchenko also reiterated the project would jeopardize Ukraine's security and threaten the energy independence of Eastern European countries.
Nord Stream 2 pipeline would help Russia bypass one of its foes, Ukraine, and double its annual gas export to 110 billion cubic meters via the Baltic sea. The twin gas pipeline will allow Russia to seamlessly transit gas to European markets while making a colossal income back home.
Based on Gazprom's report back in aguast, the newly constructed Nord Stream 2 gas pipeline could transport up to 5.6 billion cubic meters of gas by the end of this year, supplying for the heightened gas demand in Europe.
Europe faces low levels of underground gas storage as Dutch TTF gas hub spot prices on Tuesday went beyond $800 per 1,000 cubic meters. However, Russia said Nord Stream 2 gas pipeline is a commercial project that would strengthen Europe's energy security.