Why did Germany suddenly stop “Beixi 2”?
Recently, Germany announced the suspension of the qualification certification process for the “Beixi No. 2” natural gas operator. European natural gas futures prices rose accordingly.
Due to the interests of many countries, the “Beixi No. 2” project has a long history, and it has encountered many obstacles before it was officially put into production. Some analysts predict that “Beixi 2” will not be able to send natural gas to Europe normally until early 2022 at the earliest.
Add new variables
According to CNN, the Federal Network Agency, the German energy regulatory agency, announced on November 16 that it had suspended the certification process for the operation of the “Beixi No. 2” natural gas pipeline project. The Federal Network Agency stated in the statement that since the operator of the “Beixi No. 2” natural gas pipeline project is located in Switzerland, not Germany, it cannot be identified as an independent operator. Only if the pipeline operator is organized in accordance with German law can it be certified.
In response, Russia responded that this matter does not involve political factors and hopes that all parties should be patient. Russian companies have made preparations to meet legal requirements and strive to start the “Beixi 2” project as soon as possible.
“Beixi 2” is a cooperative project between Gazprom and five European companies. It involves the construction of two natural gas branch pipelines from the Russian coast through the Baltic Sea to Germany. It was originally planned to be completed by the end of 2019. However, since the project is put into production, it will affect the market share of American natural gas in Europe. Therefore, the automatic construction of the project was blocked many times from the United States at the beginning, and the progress was slow and even stagnated for a while.
In mid-September this year, Gazprom announced that the “Beixi No. 2” project was fully completed and will be put into operation before the end of the year. However, Germany’s sudden “call to stop” added new variables to the operation of the project.
Multi-party game behind
“Germany has suspended the qualification certification of the operator of the’Beixi No. 2’project. From the point of view of its legal procedures, there is no problem. However, the political game behind the project is worthy of attention.” The newspaper reporter analyzed in an interview that, from the perspective of Germany, the main project of the “Beixi No. 2” project was completed within the Merkel administration. At present, the general election has just ended and a new cabinet government is about to be formed. Relevant German administrative agencies may want to advance the corresponding matters of the “Beixi No. 2” project based on the opinions of the new government.
In addition, the pressure from the United States and the trend of intensifying conflicts between the European Union and Belarus have caused the “Beixi 2” project to face more resistance from the outside.
Recently, the refugee crisis has triggered a fierce confrontation between the European Union and Belarus. A large number of refugees crossed the Belarusian border into Poland and other EU member states. The French “Le Figaro” commented that Russia may use this to strengthen its military presence in Belarus and prompt Germany to speed up the operation of the “North Stream 2” natural gas pipeline.
“In the EU, Poland and the Baltic countries and other Central and Eastern European countries are particularly vigilant against threats from Russia and have always opposed the’North Stream 2’project. At present, these Central and Eastern European countries and Belarus are intensified. As an important member of the EU Germany may consider the need to maintain the internal balance of the EU and choose to postpone its certification as an operator of the’Beixi No. 2’project in order to put pressure on Russia and Belarus.” Li Chao analyzed that the role of the United States should also not be ignored. Although Germany and the United States have reached a certain consensus on the “Beixi No. 2” project before, the Biden government announced that it will abandon sanctions on companies involved in the construction of the “Beixi No. 2” project, but it does not rule out that Germany may delay the opening of the project. The U.S. makes a certain amount of compensation.
Wait for things to get better
Reuters reported that European natural gas prices have soared recently due to the suspension of qualification procedures for the “Beixi No. 2” natural gas operator. As the “Beixi 2” has little hope of supplying large amounts of natural gas to Europe this winter, people are beginning to worry that Europe may face power outages due to insufficient supply.
“EU countries have a great demand for natural gas, and about 40% of its natural gas supply comes from Russia. Since this fall, the price of natural gas has soared, which has plunged Europe into an energy shortage dilemma. Germany’s’stop Beixi 2’this time , So that EU countries, including themselves, become a passive party.” Li Chao said in an analysis.
Some analysts believe that the situation of natural gas shortages and high prices in Europe this winter will be difficult to alleviate. Reuters quoted a German official as saying that it is expected that the start of the “North Stream 2” project may be postponed to March 2022.
“Overall, in 2022, with the new German government coming to power, the border situation of Belarus and Poland and other EU countries will ease. The completed’Beixi No. 2’pipeline.” Li Chao pointed out that at present, Russia adopts a relatively restrained attitude and continues to release goodwill signals, and it has also shown patience to wait for the situation to develop for the better.
Source: People’s Daily Overseas Edition