Nord Stream 2 Pipeline

In News

• Germany has taken steps to halt the process of certifying the Nord Stream 2 gas pipeline from Russia after Russia announced that it will recognise the independence of eastern Ukraine’s separatist republics, Donetsk and Lugansk territories.

About Nord Stream 2 Pipeline

• Nord Stream is the 1,200 km subsea export gas pipeline that runs under the Baltic Sea carrying gas from Russia to Europe. 
• Source: Bovanenkovo oil and gas condensate deposit in Western Siberia.
• Nordstream consists of two pipelines i.e Nord Stream 1 & Nord Stream 2.
• Nord Stream 1, completed in 2011 (From Vyborg in Leningrad to Lubmin near Greifswald, Germany).
• Nord Stream 2, completed in September 2021 (From Ust-Luga in Leningrad to Lubmin).

Why is it important for Europe and Russia?

For Europe:

• Europe’s dependence on Russia: For Natural gas (around 40% of its gas comes from Russia, ↓ domestic gas production).
• No easy replacements: No infrastructure to import LNG from exporters like Qatar and the U.S.
• European Green Deal: To phase out of Nuclear & Coal-based energy, increased dependence on Russian Gas.
• Industrialist’s Investment: Pressurise the govt. to go ahead with Nord Stream.
• Economic impact: Gas used for factories, offices and power generation.

For Russia:

• Part of Major Budget Chunk: 40% of its budget comes from sales of gas and oil.
• Bypass transit countries: Cuts operating costs by doing away with transit fees & delivering important European customers.
• Increases Europe’s dependence on Russia. 

Source: TH