Page 7 - FSUOGM Week 09 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Nord Stream 2 becomes insolvent

EUROPE THE Swiss-based operator of Russia’s belea- file for bankruptcy, but that it was facing “mas-
guered Nord Stream 2 gas pipeline project has sive payment difficulties” that made its contin-
The operating company become insolvent, a Swiss official told local radio ued operations impossible.
has laid off all its staff. on March 1. Nord Stream 2 AG is yet to comment on
The US slapped Nord Stream 2 with addi- the matter. But according to Thalmann-Gut,
tional sanctions last week in response to Rus- the company’s entire workforce of around 106
sia’s recognition of eastern Ukraine’s breakaway employees have already received termination
regions of Donetsk and Lugansk as independ- notices, because of US sanctions. The US Treas-
ent, while German Chancellor Olaf Scholz ury Department issued an executive order on
announced that his government would halt the February 23 authorising “the wind down of
certification process necessary for the pipeline to transactions involving Nord Stream 2 AG” or
start up. “any entity in which Nord Stream 2 AG owns,
Speaking to Swiss radio station SRF, the eco- directly or indirectly, a 50% or greater interest”
nomic director for the canton of Zug, where the by March 2.
Nord Stream 2 AG company is based, said that Nord Stream 2 AG is a wholly-owned subsid-
cantonal authorities had been informed that iary of Russia’s Gazprom. The $11bn pipeline was
day that the business was unable to continue its completed last year, after receiving loans from
operations. European energy companies Engie, OMV, Shell,
“The head of the office for economic affairs Uniper and Wintershall Dea. Those companies
and labour was on site today and was informed in also agreed to receive gas supply via the pipeline.
detail about the situation,” Silvia Thalmann-Gut Shell said on February 28 it was cutting ties
said. with Nord Stream 2, and OMV said on March
The official later clarified to the Financial 1 it too would reconsider its involvement in the
Times that Nord Stream 2 AG was yet to formally project. ™

Poland and Lithuania bring

forward launch of gas link

BALTICS THE new gas pipeline connecting the gas grids the Lithuanian gas transmission system and the
of Lithuania and Poland will become operational Klaipeda LNG terminal
GIPL will allow both on May 1, the Polish and Lithuanian operators Starting on May 1, the GIPL will offer a part
countries to bolster their decided in the wake of Russia’s invasion on of its capacity with full-scale commissioning to
energy security. Ukraine, which has exacerbated worries about take place in October.
gas supply in the EU. The pipeline’s capacity to flow gas from
The GIPL pipeline will connect the gas net- Poland to Lithuania will be 230,000 cubic metres
works of Lithuania, other Baltic states Latvia and per hour from May until the end of September.
Estonia, as well as Finland, to the Polish gas grid, Annually, that amounts to 2bn cubic metres
which is part of the wider EU network. That is (bcm).
expected to boost the energy security of the Bal- From Lithuania to Poland gas will flow at
tic trio, so far isolated from the rest of the bloc. 217,000 cubic metres per hour or an equivalent
"In the context of today's geopolitical ten- of 1.9 bcm annually. The pipeline’s target capacity
sions, the integration of the Baltic and Finnish is 2.4 bcm.
markets into the common European gas market The capacities in both directions will be
is a guarantee of energy security and independ- offered for booking in April.
ence for the entire region,” Lithuanian Energy The pipeline is a joint project of the Polish and
Minister Dainius Kreivys said in a statement. Lithuanian gas grid operators Gaz-System and
The GIPL will also allow more efficient use of Amber Grid.™

Week 09 02•March•2022 www. NEWSBASE .com P7