Home Business Germany suspends approval of Russian energy projects, European natural gas prices soar | Beixi-2 | Germany | Russia

Germany suspends approval of Russian energy projects, European natural gas prices soar | Beixi-2 | Germany | Russia

by admin

[Epoch Times November 17, 2021](Epoch Times reporter Li Xin comprehensive report) The German energy regulator announced on Tuesday (16th) that it has suspended the approval of the German-Russian gas pipeline project “Beixi-2”. After the announcement of the decision, European natural gas prices soared.

According to Reuters, the German energy market regulator issued a statement on Tuesday that it suspended the certification process for the German-Russian energy cooperation project “Nord Stream 2” because the company supporting the project is in Switzerland and It is not in Germany, so the project party cannot be certified as an independent operator.

The agency stated that the company needs to first establish a German subsidiary in accordance with German law to ensure that it obtains an operating license. Only after the company transfers its main assets and personnel budget to a German subsidiary will they evaluate its certification application.

After the announcement of the decision, natural gas prices in Europe soared by 9%, futures prices rose by 10%, and the short-term trading price of Dutch near-month contracts reached 89.00 euros/MWh.

“This has indeed greatly delayed the expected timetable.” said Trevor Sikorski, an analyst at Energy Aspects, an energy research consulting firm. He added that it is not clear how long the process of setting up a new company and reapplying for certification will take.

He also said that it is unlikely that the pipeline will be used to transport Russian natural gas in the first half of 2022.

The United States and some European countries strongly oppose the “Beixi-2” pipeline project, which they believe will make Europe overly dependent on Russian natural gas.

See also  Russia's new crown epidemic aggravates the number of deaths in a single day to record high_cases

But some other European countries believe that the project is essential to ensure energy supply in Europe. Natural gas prices have soared in recent weeks, and the threat of power outages this winter is imminent.

The “Beixi-2” project party stated that the regulatory agency has informed it of this decision.

“We are unable to comment on the details of the procedure, its possible duration, and its impact on the start of pipeline operations,” the project party added.

The decision by the German regulator comes at a time when relations between the European Union and Russia are becoming increasingly tense due to a series of issues, including the Ukraine issue and the immigration crisis at the Belarus-Poland border.

According to CNN, about 40% of the natural gas used by the European Union comes from Russia. The pipeline of the “Beixi-2” project bypasses Ukraine and directly connects Russia and Germany.

The United States and other countries have been opposed to the project, warning that the project will increase Russia’s influence in Europe. Despite this, the project was completed in September.

British Prime Minister Boris Johnson said on Monday that the EU faces a “choice”-whether to support Ukraine or approve “Beixi-2”.

Johnson said in a speech in London: “We hope that our (European) friends will realize that between injecting more and more Russian hydrocarbons into the new giant pipeline and supporting Ukraine and supporting the cause of peace and stability, There will be a choice soon.”

Editor in charge: Lin Yan#


0 comment

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy