Nord Stream 2: Germany Stops Approval of Russian Gas Link
Beutsche Umwelthilfe, An Environmentalist Group of Germanys, Is Opposing the Pipeline as It Is Against the Emission Goals for Climate Change
The energy regulating authority of Germany has recently suspended the process for approval for the Nord Stream 2, which is a controversial pipeline for natural gas that would extend to Germany from Russia. The regulators said that the operating company for the Nord Stream 2 pipeline needed to be in full compliance with the laws of Germany before they are to be certified with the $8.4 billion projects.
The decision regarding the Nord Stream 2 has taken the wholesale gas prices of the United Kingdom along with mainland Europe into a three-week high, which is already suffering from immense pressure. It is being feared by the critics that the pipeline for natural gas will be able to increase the energy dependence of Europe on Russia.
The Nord Stream 2, which would be running under the Baltic Sea, will be able to double the amount of natural gas export of Moscow to Germany, but it would also have an impact over Ukraine, as it would circumvent the country, which currently relied on the current existing natural gas pipeline for their income and is likely to suffer from a hit due to hard loss of transit fee.
The businesses of Germany have already made heavy investments in the Nord Stream 2 natural gas pipeline, which extends about 1,225 kilometers, and Gerhard Schroder, the fore Chancellor, has played a major role in its process of development.
Potential political control
It has been said by the German regulatory authority that the only way through which it would be possible to gain clarification for the entire operation of the natural gas pipeline Nord Stream 2 would be if the operator was able to organize the project in a legalized form under the regulatory laws of Germany.
This decision is likely to take the project more back by several months, and even when it is able to receive approval from Germany, another green light would be needed to continue on the Nord Stream 2 project from the European Commission.
The regulators of Germany also added that the procedure for approval would remain suspended for the time being until the main assets along with the human resources had all been transferred from the parent company of Nord Stream 2, which is based in Switzerland, to its subsidiary in Germany, which is the owner of the pipeline and is also running the operation.
A proposal has been made by Ukraine in opposition to Nord Stream 2, which according to the President of Ukraine, Volodymyr Zelensky, is a dangerous geopolitical weapon.
This week, the Prime Minister of the United Kingdom, Boris Johnson, stated that a choice is to come shortly between mainlining more hydrocarbon from Russia in a giant new natural gas pipeline or showing support for Ukraine and continuing with the cause of stability and peace.
Opposition to Russia gas pipeline
According to Angela Merkel, the German Chancellor recently stated that further new sanctions might be imposed on the country of Russia if it is to use the Nord Stream 2 gas pipeline against Ukraine in any way. The regulators of Germany have made a decision for the suspension of certification, which has been welcomed by the energy firm of Ukraine Naftogaz. A gas company of Poland, PGNiG, has responded by making a call for the solidarity of energy in the European Union to ensure the supply’s security.
The consortium of Nord Stream 2 has declined to make any comments on the possible delays in the export of natural gas. Under the gas directive given by the European Union, the producers of natural gas have to be separate from the firm that owns the gas pipeline.
Along with the Uniper of Germany and BASF’s Wintershall unit, other firms of Europe have stakes, too, including OMV of Austria, Anglo-Dutch Shell, and France’s Engie.
The government of Germany has estimated that the supply for natural gas would continue to provide a significant amount of contribution for the supply of energy across Germany over the several upcoming decades, as it is friendly towards a climate in comparison to other types of fossil fuel consumption as natural gas emits less amount of CO2 in the atmosphere.
But the country’s environmental group is in opposition to Nord Stream 2 and has argued that it is incompatible with the emission goals of Germany in the battle against climate change.