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Debate: What Impact Will Nord Stream 2 Have on European Energy Security?

Is Nord Stream 2 good or bad for Europe? Is the European Commission right to try to change the EU Gas Directive apparently to halt Nord Stream 2? On 28 November Energy Post held a conference in Brussels, sponsored by Nord Stream 2, and moderated by our EU correspondent Sonja van Renssen, where Gazprom’s pipeline project was debated. The video shows the highlights of the debate.

The panellists are: Michael Stoppard, Chief Strategist for Global Gas, IHS Energy; Paul Corcoran, Chief Financial Officer Nord Stream 2, Frank Umbach, Research Director at EUCERS (European Center for Energy and Resource Security) and Walter Boltz, independent advisor, former Vice-Chair ACER, former VP CEER (Council of European Energy Regulators) and former head of E-Control, the Austrian  Regulatory Authority.

 

Michael Stoppard: “If you look at Nord Stream 2 as a re-routing, then, as a re-routing, it does not change the supply-demand balance and therefore does not change the overall price outcome. If you believe it adds adding additonal gas to the market, that means the price would go down.”

 

Frank Umbach: “Nord Stream 2 is not just a commercial project. It is quite clear that it has strong geopolitical motivations. The commercial motivations cannot be separated from the political ones.”

 

 

 

Paul Corcoran: “Given the fact that the internal energy market exists, that no one is forced to buy  gas – the choice is up to the customer – Russian gas is a benefit to Europe. Russian reserves on the doorstep are a great benefit that Europe has.”

 

 

Walter Boltz: “Will Nord Stream 2 affect security of supply? Across Europe, probably not much. But regionally, yes. Is Nord Stream 2 good for Europe? Economically, it probably is. Politically, probably not.

 

 

 

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Jarmo Mikkonen's picture
Jarmo Mikkonen on Dec 21, 2017 5:22 pm GMT

It is not about Europe. Germany needs Russian gas.

The Dutch gas fields that have supplied Germany in addition to Russian gas will be depleted in the next 10 years. German gas dependency will grow as nuclear plants are shut down and coal generation gradually cut down in 2020s.

There is almost 30 GW of natural gas powerplants and in addition the Germans do their cooking and heating with gas.

Thorkil Soee's picture
Thorkil Soee on Dec 21, 2017 8:40 pm GMT

The ambitious Energiewende will need Russian gas not to collapse.
“Soon” may be too late.

Willem Post's picture
Willem Post on Dec 21, 2017 11:51 pm GMT

The line goes directly from Russia to Germany.
No transit fees.
No Ukraine or Poland to go through.
Germany and the Netherlands, etc., eventually will consume most of that gas, as Dutch fields are closed down and depleted.
The price will always be significantly less than LNG from the US.
From a technical and économic viewpoint it is a no brainer.
The agonizing over politics is astounding.
If Russia becomes unreliable, the US would be glad to divert some tankers and deliver at 50% higher price.

Thorkil Soee's picture
Thorkil Soee on Dec 23, 2017 1:15 pm GMT

Anybody out here, able to give some reliable information?
As far as I understand the Nord Stream 2 will transport a hell of a lot of gas.
Therefore:
Will it be possible to find tankers enough for transport from USA?

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