Germany has suspended the approval process for the controversial Beixi 2 natural gas pipeline, which will double its dependence on Russian natural gas after increasing political pressure to cancel the destination.
Energy market Europe Soaring after the German energy regulator suspended its certification process, this is a major setback for the Kremlin-backed Gazprom Corporation’s plan to expand Gazprom’s dominance through a new pipeline across the Baltic Sea.
British natural gas prices surged 9.3% on Tuesday to 223 pence next month, almost a three-week high, while the Netherlands, one of Europe’s largest natural gas markets, rose 7.9% to 88.05 euros per MWh.
The German energy regulator stated that the Swiss-registered Nord Stream 2 company will not continue the approval process until it transfers its main assets and personnel budget to its German subsidiary.
“Once the operator conforms to the legal shape of the German legal organization, the operation certification for Beixi 2 will only be counted,” the regulatory agency said.
Germany decided to postpone the Beixi 2 project, which bypassed the pipeline currently passing through Russia’s nearest neighbor Ukraine And Belarus, after Western leaders called for the cancellation of the plan or the risk of destabilizing the region.
Boris Johnson warned that Germany, it will have “mainlining ever to choose between more Russian hydrocarbons in the giant’s new pipeline” and “Persist in Ukraine“And “Cheer for the cause of peace and stability in Eastern Europe.”
Critics of the project fear that Russia will use the pipeline As a geopolitical weapon in Europe In the global natural gas crisis, Ukraine’s power has been weakened at the same time. Ukraine is heavily dependent on the revenue from the transportation of Russian natural gas to Europe through its natural gas transportation network. Moscow denied this.
Johnson said: “When we say that we support Ukraine’s sovereignty and integrity, it’s not because we want to be an enemy of Russia, or we want to strategically encircle or destroy this great country in some way.” Speaking to important figures in the City of London at Mansion House on Monday.
U.S. Secretary of State Anthony Brinken warned earlier this year that the North Stream 2 project represents “Russia’s geopolitical project aimed at dividing Europe and weakening European energy security.”
Europe faces The imminent winter natural gas crisis, Which has exacerbated concerns that factory shutdowns and potential power outages will lead to a general slowdown in the industry. It is also expected to bring a cost of living crisis to families and small businesses.
Natural gas price Has reached a record high In recent months, ignited by last year’s Covid-19 economic slowdown after a surge in global demand, and Russia’s unwillingness to supply additional supplies despite the soaring market prices exported to Europe to help meet the demand boost.
Some countries have accused Europe’s largest natural gas supplier, Russia, for refusing to provide additional natural gas supplies to Europe in order to force Germany to approve the natural gas project. The Kremlin denied this.
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Jeremy Weir, owner of the commodity trading giant Trafigura, warned that Europe may face “rotating power outages” this winter due to tight natural gas supplies and low gas reserves.
“Frankly speaking, we currently don’t have enough gasoline; we don’t store it for the winter. So what’s really worrying is that if we have a cold winter, we might have Rotating blackouts in Europe,” Will said at an industry conference.
Will warned that due to the slowdown in new oil production, “the oil price problem is imminent in the long term” and that global oil prices, which have risen by 60% since the beginning of the year, are “very likely” to rise above US$80 per barrel for the first time since 2014. , May reach US$100 per barrel for the first time.
