GENERICO.ruWorldNord Stream 2 will reduce gas prices in Europe, experts say

Nord Stream 2 will reduce gas prices in Europe, experts say


Onshore facilities of the Nord Stream 2 gas pipeline MOSCOW, Jan 3 The early commissioning of the Nord Stream 2 pipeline along with increased supplies from Russia could reduce gas prices in Europe, experts interviewed by RIA Novosti say. Ronald Smith, senior analyst at BCS Global Markets, believes that if Nord Stream 2 were allowed in the near term, this would lead to an “immediate drop” in gas prices. “The balance of supply and demand will not undergo significant changes, and Europe will continue to experience a shortage of gas. However, the risk of interruption of supplies to Europe could decrease,” he said. The start of gas supplies via Nord Stream 2 could improve the situation with gas supply , but only in combination with new supply contracts, says Aleksey Grivach, Deputy Director General of the National Energy Security Fund. The commissioning of the gas pipeline will reduce prices for “blue fuel”, but it is difficult to say by how much, since it depends on a host of factors, the expert says. Dmitry Marinchenko, director of the group for natural resources and commodities at Fitch, agrees with him. “The important thing is not so much the fact that the gas pipeline is put into operation, but how much Gazprom will be ready to increase supplies after that, that is, to resume spot sales through the electronic platform and bring the level of filling of its own storage facilities in Europe to a comfortable level,” he says. Under these conditions, prices are likely to normalize and fall below $ 500 per thousand cubic meters, says Fitch analyst. Checkmate to Gazprom: Ukraine will stop the transit of Russian gas in winter “Now is the case when the prompt launch of the gas pipeline primarily meets the interests of the European market and European consumers. Whether politicians and officials are ready to face them is a difficult question. So far, not very much, but as the flywheel of winter unfolds, the situation should change for the better, “Grivach concluded. Nord Stream 2 is a new export gas pipeline with a capacity of 55 billion cubic meters per year from Russia to Europe. It begins in the Ust-Luga region of the Leningrad region, passes through the Baltic Sea and goes to the territory of Germany in the Greifswald region. The project is being implemented by Nord Stream 2 AG with the sole shareholder – Gazprom. Construction of the gas pipeline lasted three years and was completed on September 10, 2021. Now both lines are filled with technical gas, and Nord Stream 2 is ready for commissioning. However, Germany has suspended the certification process for Nord Stream 2 AG as an operator so that the company can reorganize in accordance with the country's legislation. she manages herself Now Nord Stream 2 AG needs to create a subsidiary enterprise in Germany and submit a new application for certification on her behalf. In mid-December, the head of the regulator – the German Federal Network Agency (BNA) – Jochen Hohmann said that he expects a decision on Nord Stream 2 no earlier than the beginning of the second half of 2022. on the mood of the gas market participants. The situation on it remains difficult: prices are kept above $ 1,000, the occupancy of European gas storage facilities is at the lowest level in 10 years. At the same time, winter continues, and so far no one can say whether there will be enough gas for consumers.

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