Introduction to the Nord Stream Pipeline
The war in Ukraine has been ongoing for nearly four years, and the idea of Russia pumping gas to the European Union via Germany is becoming increasingly plausible. Recent media reports suggest that Russian President Vladimir Putin has offered to stop the invasion at the current front lines in discussions with the United States. This has sparked speculation about the possible reintegration of Russian gas into the European Union.
The Nord Stream Pipelines
The Nord Stream 1 pipeline brought gas to Germany before the Ukraine war began, while the Nord Stream 2 pipeline was completed in September 2021 but never entered service. Some German politicians have welcomed the idea of repairing both damaged pipelines to restore gas supply. The Russian Foreign Minister, Sergei Lavrov, recently stated that discussions with the United States about Nord Stream are ongoing.
US and Russia’s Interest in Nord Stream
Both Russia and the United States are reportedly interested in getting gas flowing through the pipelines again. There are reports that US investors have bought the Swiss subsidiary of the Russian state energy company Gazprom, which owns the Nord Stream 2 pipeline. An investment advisor, Chris Weafer, believes that serious discussions are taking place about the company’s purchase.
European Energy Needs
The diversification of Russian gas and oil in Europe after the full-scale invasion led to an increase in energy costs in 2022 and 2023. Although costs have decreased significantly, the resumption of Russian energy supply would likely further reduce costs. German companies, such as the chemical giant BASF, have borne the brunt of rising energy costs in recent years.
German Business and Energy Costs
BASF’s spokesman stated that the company would not speculate about possible deals related to Russian energy but emphasized that it is not the only factor affecting the business. The Managing Director of Germany’s Chemical Industry Association, Wolfgang Große, welcomed measures to reduce high energy prices but emphasized the importance of "reliable partners." He noted that deliveries via Nord Stream 1 were unilaterally suspended by Russia in August 2022.
Political Opposition to Nord Stream
The EU Commission has repeated its position on Nord Stream 2, stating that it is not a project of common interest and does not diversify the EU’s energy sources. The EU aims to leave all Russian fossil fuels by 2027 and plans to publish a detailed strategy and roadmap. The restoration of Nord Stream is seen as "absolutely bizarre and grotesque" by some, as it would undermine Russian sanctions.
Technical Obstacles
There are significant technical obstacles to restoring the Nord Stream pipelines. The Nord Stream 2 pipeline has never been certified by Germany, and there is significant repair work needed. However, Chris Weafer believes that discussions about the pipeline’s purchase are credible, and he expects Russian gas to return to Europe, albeit at a reduced volume.
Conclusion
The idea of restoring the Nord Stream pipelines is becoming increasingly plausible, with both Russia and the United States reportedly interested in getting gas flowing again. However, there is strong political opposition to the plan, and significant technical obstacles need to be overcome. The EU’s commitment to leaving Russian fossil fuels by 2027 and the need for reliable energy partners make the restoration of Nord Stream a complicated and contentious issue.
