Page 5 - FSUOGM Week 14 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Germany's main
pipelines. Source:
Gascade.

Eugal pipeline reaches

completion

EUROPE CONSTRUCTION has finished on the Eugal number of other European companies to leave
pipeline in Germany, designed to carry Russian the project. There were expectations that US
gas arriving from the delayed Nord Stream 2 President Joe Biden might seek to ease pressure
project. on Nord Stream 2 to mend ties with Germany
Work on the 55bn cubic metre per year pipe- that were strained during the Trump adminis-
line began two and a half years ago and the first of tration. However, US Secretary of State Antony
its two strings was put into operation in January Blinken last week reiterated Washington’s posi-
2020. The second string and a compressor sta- tion that the pipeline was “bad for Europe.”
tion were brought online on April 1. German support for Nord Stream 2 has so
“Eugal is an important component in far held firm. Recently, though, some German
Europe’s energy supply,” lead developer Gascade government officials have called for a temporary
said in a statement. Gasunie, another project moratorium on the pipeline’s construction, to
partner, noted that the pace of construction was allow time for trilateral talks between Germany,
“positively breathtaking.” Russia and the US on the project.
Nord Stream 2 had been due to start pumping The Eugal pipeline runs for 480 km from
gas to northern Germany by the start of 2020, Lubmin on the Baltic Sea to Deutschneudorf on
but construction was halted in December 2019 the German-Czech border. Gasunie suggested
after the US imposed sanctions on the project, the project could be used to transport hydro-
forcing Swiss contractor Allseas to withdraw. gen in the future. Germany is looking to expand
Russia resumed pipelaying using its own vessels the role of hydrogen in its energy mix in order
late last year, but has offered limited guidance on decarbonise, but has recognised that it will need
when the pipeline will be ready to flow gas. imports to cover its needs. Russia could poten-
Washington has imposed more sanctions on tially supply the hydrogen, using Nord Stream
Nord Stream 2 over the past year, prompting a and Nord Stream 2. ™

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