Nord Stream 2 could be built by summer 2021 after Russia and Gazprom believe they can sidestep U.S. sanctions and restart pipe-laying.
“Russia can probably get around the latest U.S. sanctions against Nord Stream 2 and complete the controversial pipeline, according to industry executives and analysts.”
Bloomberg, 11/28/2020
Source article (opens in new tab): The Energy Project Trump Can’t Stop Seeks Ways to Finish the Job
Article Summary
- Pipe-laying work could begin as early as December 5
- Russia believes it can outmaneuver U.S. sanctions to continue work and complete the pipe
- Gazprom, the Russian energy corporation headquartered in Saint Petersburg, has three challenges to resolve to move forward
- Finding a ship to do the pipe-laying
- Obtaining Insurance for the project
- Getting certification that the work being done is safe and complies with EU standards
AEGIS View
The Nord Stream 2 project has been a contentious item between the U.S. and Russia. The U.S. wants to deny Russia more gas transportation into Western Europe that could come with added influence for Russia over the region, specially Germany. The 5.3 Bcf/d, 764-mile Nord Stream 2 also has the capability to impact LNG imports into Europe – an important destination for U.S.-sourced LNG.
In early 2020, U.S. gas accounted for about one-third of Europe’s LNG imports. Those amounts quickly shrank during the pandemic and weak Global LNG prices forced cancelled cargoes for U.S. LNG providers.
Source: Bloomberg
The chart above shows who relies on Russian gas, per Bloomberg. Nord Stream 2 stands to increase the reliance on Russian gas for European countries.
