Midstream

Gazprom patient on Nord Stream 2 delay, as gas prices jump in Europe

Gazprom

Gazprom, the Russian energy giant, is patiently waiting over the Nord Stream 2 delay and has no need to pressure Germany to expedite its commissioning, two sources said to Reuters this Friday.

Firstly, as we reported previously, the long-delayed Nord Stream 2 pipeline, a major connection under the Baltic Sea that will send natural gas from Russia to Germany, faces a major delay. The German energy regulator suspended the certification process for the pipeline; arguing the Swiss-based consortium to operate the facility in Germany lacked an operating license.

As a result, sources have said that the delay could take until March next year. According to Reuters, a Gazprom official said that the pipeline’s operating company, Nord Stream 2 AG, has been in close contact with Germany’s regulator. However, it declined to provide timing for when deliveries could start.

Consequently, there has been speculation over Russia pressuring Germany to expedite the process, as soaring gas prices in Europe have created a major crisis. However, two sources close to Gazprom said Russia wouldn’t pressure Germany whatsoever.

Moreover, pumping gas wouldn’t cause a lot of trouble for Russia. However, as its ties with the West are severely strained; and Germany has a new government, Russia is content to wait. “We don’t want to seek faster approval for the pipeline. Now it’s Germany that is in charge,” the source said on condition of anonymity.

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Gazprom feeling greate, as market will remain as tight in 2022

In addition, the same source said Russia’s biggest taxpayer and the Kremlin understood how ties with Germany’s new government would evolve after the departure of Angela Merkel. Furthermore, the Kremlin has said publicly it does not view as political the certification process; understands it is complex and that Russia must be patient.

On the other hand, Gazprom reported on Monday an all-time high quarterly profit of 582 billion roubles (USD$8 billion) for the July-September; as a result of higher natural gas prices in the European region. It said it expected even higher earnings in the coming months.

Consequently, the second source of Gazprom said the company is feeling great, as it expects next year’s gas market to remain as short of gas as it is now, keeping prices high.

Finally, the pipeline monopoly that Russia has created supplies 35% of European needs. The Nord Stream 2 pipeline will double Russian gas export capacities to Europe via the Baltic Sea. Ukraine fiercely opposes the project; many Western politicians say Moscow uses energy as a political weapon, something it denies.

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