Receive our newsletter – data, insights and analysis delivered to you
  1. News
July 23, 2021updated 26 Jul 2021 12:56pm

Russia plans to start operations of Nord Stream 2 gas pipeline soon

The pipeline will bring 55 billion cubic meters of gas annually from Russia to Germany through the Baltic Sea.

By Shalini Nair

Russia plans to soon make the $10bn 1,230km Nord Stream 2 natural gas pipeline operational, a project that will double the country’s gas exports to Germany.

The Nord Stream 2 gas pipeline is expected to be completed in August.

The US and Germany reached a truce deal this week on the dispute over the pipeline.

This deal has seen Berlin make a promise to impose sanctions on Russia if the latter threatens the energy security of its neighbours.

Commenting on the US-Germany agreement, Russian Foreign Ministry spokesperson Maria Zakharova said: “Despite the strange decisions that were made under US pressure, as was the case during the recent German-American negotiations, they are not able to change the objective reality, the construction of this large-scale facility.”

Ukraine and Poland oppose the pipeline. Ukraine expects to lose about $3bn (£2.2bn) a year from its gas transit fees. Poland also fears that the project will threaten the security of European countries.

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

The US has been claiming that the project will undermine Ukraine’s role in transiting energy, as well as make Europe dependent on Russian gas.

Associated Press reported that the terms of the US-German deal would see Ukraine get $50m in green energy technology credits, as well as a guarantee of repayment for gas transit fees that it stands to lose for being bypassed by the pipeline project, through 2024.

However, Russia claims this project is beneficial for all the parties involved.

Zakharova added that Russia expects the Nord Stream 2 project to operate reliably and offer affordable energy to consumers in Europe.

Once operational, the pipeline is expected to carry 55 billion cubic metres of gas annually from Russia to Germany through the Baltic Sea.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU