Will Gazprom lose its natural gas export monopoly? | OilPrice.com

The long-awaited NS2 pipeline is the most controversial power project in the world. Although he was not sure how long it would take, political, economic, and environmental developments were at stake. Gazprom, the owner and operator of the gas pipeline, recently announced the company Completion. However, there are still legal challenges that threaten a rapid start, which is in Russia’s long-term and short-term European interests. Today, most readers of the world’s energy development know that the Russian gas pipeline project has paid off in Europe. Eastern Europe, distrustful of Moscow for historical reasons, objected, fearing that the project would increase Russia’s influence. The Germans, who are determined to make the most of it, have long argued for entrepreneurial behavior. Berlin indirectly accepted the political implications of the project Agreement To support Ukraine with US and warn Russia on NS2 device.

The United States, led by the Trump administration, wanted to dismantle the project with drastic sanctions that would significantly reduce construction work. European companies such as Allseas have canceled contracts out of fear of Washington. So Gazprom was forced to use two smaller, more sophisticated ships from the Pacific. Sanctions have significantly delayed the project, but with the completion of the pipeline, Gazprom’s perseverance has finally borne fruit.

Related – High oil and natural gas prices are skyrocketing two industries Legal obstacles, however, could dampen Russia’s optimism. First, the German regulator wants BNetzA To approve the NS2 certification application Before gas runs through the pipeline. The draft decision must be submitted to the European Commission for advice. After that, the German BNetzA will make the final decision. The process could take up to four months until January 8thTh, 2022

Also European Inalienable law Activation for NS2 is another serious obstacle. Under European law, a manufacturer and system operator cannot have more than 50 percent of the same legal capacity.

The capacity of the pipeline can only be fully utilized when another manufacturer is allowed to use NS2. However, since the collapse of the Soviet Union, Moscow has been the largest gas pipeline infrastructure in Europe, exporting natural gas to Europe. By confirming the company’s monopoly, the Russian government intends to increase its financial capacity and state revenue.

Rosneft has previously tried to break this monopoly with good relations with Moscow. It does not work. Over the years, the state-owned company has become the son-in-law of Russia’s energy industry as a result of its success at home and abroad. Rosneft CEO Igor Sechin regularly conducts bidding for the state, making investments that comply with Moscow’s policies, despite President Putin’s trustworthy and modest financial opportunities.

Related – The European energy crisis is driving natural gas prices around the world

However, the state may change its position as the Ministry of Energy prepares a report to complete the Gazprom’s export monopoly through NS2. According to Interfax quoting Deputy Prime Minister Alexander Novak, Rosneft has filed an application Permission To use the remaining 50 percent pipeline.

Even when there is a supply crisis in the European gas market, it is not difficult to differentiate between the European Commission and the law. By allowing Rosneft to use the pipeline, she could send a message to the European Parliament asking the European Commission to reconcile. Start an investigation On market management available at Gazprom.

Despite Moscow’s push to Asia, Russia’s energy industry remains highly dependent on the lucrative European market. Rosenft’s attempt to dismantle Gazprom’s monopoly aims to improve the company’s political position in Moscow as it increases regional revenue.

By Vanand Melchizedek for Oilprice.com

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