Page 6 - EurOil Week 37

EurOil COMMENTARY EurOil

Berlin offers LNG funding

to avert US sanctions on

Nord Stream 2

Germany has offered to invest public funds in LNG import projects, if

the US drops plans to impose more sanctions on Nord Stream 2

GERMANY BERLIN has offered to spend €1bn ($1.2bn) on on European companies assisting the project,
the construction of two LNG import terminals, whose offshore section is now 94% complete.
in exchange for Washington dropping plans to Construction was halted in December after
impose extra sanctions on Russia’s Nord Stream the imposition of a first round of US sanctions,
2 project, German newspaper Die Zeit reported forcing Swiss contractor Allseas to halt work.
on September 15. Meanwhile, the US State Department is looking
Finance Minister Olaf Scholz made the sug- to remove an exemption protecting Nord Stream
gestion in an August 7 letter to Treasury Sec- 2 from an existing sanctions package introduced
retary Steven Mnuchin, the weekly paper said, in 2017.
citing a copy of the document. He proposed In Europe, Nord Stream 2 is a polarising
using public funds for the LNG facilities. issue. Some countries are eager to have the
“In return, the United States will allow the extra supply options, while others say it will
construction and operation of Nord Stream put the continent’s energy security at risk. Aus-
2 to proceed unhindered,” Scholz reportedly trian Chancellor Sebastian Kurz weighed in to
wrote. “The US will not exercise its legal scope defend the pipeline this week, saying it was above
for sanctions.” politics.
Nord Stream 2 will pump up to 55bn cubic “Nord Stream 2 for us is an economic pro-
metres of Russian gas directly to Germany, ject, a positive project, because we believe that
establishing the country as Europe’s biggest it is good to have more diversification and to be
hub for gas trade. While the project is clearly in able to use different routes for energy supply to
Germany’s economic interest, Berlin has faced Europe,” he told a news conference in Vienna on
growing calls to withdraw its support following September 16.
the attempted assassination of Russian dissident Russia now expects Nord Stream 2 to be
Alexei Navalny in late August. completed in early 2021 – over a year behind the
One of Nord Stream 2’s staunchest oppo- original schedule. It is understood to be prepar-
nents is the US, which argues that the pipeline ing to use its own pipe-laying vessels to finish the
will increase Europe’s dependence on Russian pipeline. They are currently moored off ports in
gas and leave it open to political pressure from northern Germany.
Moscow. But critics of Washington’s actions say it According to vessel-tracking data, the Rus-
is simply looking out for the interests of US LNG sian-flagged Ivan Sidorenko supply ship left St
exporters. Petersburg on September 11 bound for Mukran
Germany currently lacks any LNG import in Germany, which Russia’s Gazprom has been
capacity, although Nord Stream 2 would still using as a base to store Nord Stream 2’s pipelines
compete with US supplies in markets that over the years. Ivan Sidorenko will supply pipes
receive its gas via the country. There are several to enable Russia’s Akademik Cherskiy pipe-layer
LNG projects planned in Germany, but none of to complete the pipeline, Moscow-based Kom-
them have reached a final investment decision mersant reported, without citing its sources.
(FID). Akademik Cherskiy is stationed at Mukran,
A bill is making its way through US Con- while another Russian pipe-laying vessel, the
gress that would impose stricter punishments Fortuna, is moored off Rostok. ™

P6 www. NEWSBASE .com Week 37 17•September•2020