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Released May 27, 2021 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--U.S. President Joe Biden on Tuesday defended his decision to waive sanctions against key parties constructing the highly controversial Nord Stream 2 gas pipeline from Russia to Europe, saying the project was almost complete and it would be "counterproductive" to continue the sanctions.
The move paves the way for the completion this year of the Russian-led 9.5 billion-euro (US$10.5 billion) pipeline, which was subjected to an increasing level of sanctions over the past year by former President Donald Trump's administration. It is more than 95% complete and was initially scheduled for completion by the end of 2019. Last January, Industrial Info reported that Swiss-based pipe-laying and decommissioning firm Allseas (Denis, Switzerland), which was responsible for pipe-laying on the Nord Stream 2, had announced it had stopped working the project to comply with U.S. sanctions. For additional information, see January 6, 2020, article - U.S. Sanctions Stop Nord Stream 2 Pipe-laying.
Over the past year, the sanctions were widened to include the development company, Nord Stream 2--which is owned by Russia's state-owned oil and gas giant Gazprom (PINK:OGAZPY) (Moscow)--and its chief executive officer Matthias Warnig. The waiver lifts sanctions against both. This week the Russian vessel, Fortuna, began laying pipes for the pipeline in German waters, according to Germany's Waterway and Shipping Authority.
Biden defended the decision: "I have been opposed to Nord Stream 2 from the beginning. But it was almost completed by the time I took office. And to go ahead and impose sanctions now would, I think, be counterproductive in terms of our European relations, and I hope we can work on how they handle it from this point on."
The pipeline could help create headwinds for planned liquefied natural gas (LNG) plants in the U.S., as Europe is a major destination for U.S. LNG exports. For more information, see May 25, 2021 article - After Woodside's Pullout from Canadian LNG Project, What North American Projects are Left?.
Nord Stream 2 comprises two parallel pipelines running 1,230 kilometers (km) for the transport of gas from Russia via Germany to Europe. It passes through Finnish, Swedish, Danish and German marine areas before going ashore at the German coast. The pipelines can transport 55 billion cubic meters of natural gas per year, doubling the capacity of the existing Nord Stream Pipeline. The project is 50% owned by Gazprom and 50% is held by five European oil and gas companies: Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), OMV AG (OTC:OMVKY) (Vienna, Austria), BASF/Wintershall (Ludwigshafen, Germany) and ENGIE (EPA:GSZ) (Paris, France).
U.S. relations have soured over the past year with a number of European nations, including Germany and Denmark, which support the pipeline project. The waiver decision by the Biden administration was welcomed by Germany's Chancellor Angela Merkel. Speaking to German broadcaster WDR, she said: "Of course President Biden has moved a bit into our direction in the context of the Nord Stream 2 conflict." She said she accepted that they have opposing sides but added she will discuss the pipeline with Biden at the upcoming G7 Summit in the U.K.. "Partnerships consist in considering the other side's point of view and to find compromises," she added. "You only talk about deals once they have been finalized."
Earlier this year, Industrial Info reported on how Germany and Denmark had signed off on the final stages of construction of the Nord Stream 2 gas pipeline despite the strict sanctions from the U.S.. For additional information, see January 27, 2021, article - Germany and Denmark Defy U.S. Sanctions to Finish Nord Stream 2 Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The move paves the way for the completion this year of the Russian-led 9.5 billion-euro (US$10.5 billion) pipeline, which was subjected to an increasing level of sanctions over the past year by former President Donald Trump's administration. It is more than 95% complete and was initially scheduled for completion by the end of 2019. Last January, Industrial Info reported that Swiss-based pipe-laying and decommissioning firm Allseas (Denis, Switzerland), which was responsible for pipe-laying on the Nord Stream 2, had announced it had stopped working the project to comply with U.S. sanctions. For additional information, see January 6, 2020, article - U.S. Sanctions Stop Nord Stream 2 Pipe-laying.
Over the past year, the sanctions were widened to include the development company, Nord Stream 2--which is owned by Russia's state-owned oil and gas giant Gazprom (PINK:OGAZPY) (Moscow)--and its chief executive officer Matthias Warnig. The waiver lifts sanctions against both. This week the Russian vessel, Fortuna, began laying pipes for the pipeline in German waters, according to Germany's Waterway and Shipping Authority.
Biden defended the decision: "I have been opposed to Nord Stream 2 from the beginning. But it was almost completed by the time I took office. And to go ahead and impose sanctions now would, I think, be counterproductive in terms of our European relations, and I hope we can work on how they handle it from this point on."
The pipeline could help create headwinds for planned liquefied natural gas (LNG) plants in the U.S., as Europe is a major destination for U.S. LNG exports. For more information, see May 25, 2021 article - After Woodside's Pullout from Canadian LNG Project, What North American Projects are Left?.
Nord Stream 2 comprises two parallel pipelines running 1,230 kilometers (km) for the transport of gas from Russia via Germany to Europe. It passes through Finnish, Swedish, Danish and German marine areas before going ashore at the German coast. The pipelines can transport 55 billion cubic meters of natural gas per year, doubling the capacity of the existing Nord Stream Pipeline. The project is 50% owned by Gazprom and 50% is held by five European oil and gas companies: Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), OMV AG (OTC:OMVKY) (Vienna, Austria), BASF/Wintershall (Ludwigshafen, Germany) and ENGIE (EPA:GSZ) (Paris, France).
U.S. relations have soured over the past year with a number of European nations, including Germany and Denmark, which support the pipeline project. The waiver decision by the Biden administration was welcomed by Germany's Chancellor Angela Merkel. Speaking to German broadcaster WDR, she said: "Of course President Biden has moved a bit into our direction in the context of the Nord Stream 2 conflict." She said she accepted that they have opposing sides but added she will discuss the pipeline with Biden at the upcoming G7 Summit in the U.K.. "Partnerships consist in considering the other side's point of view and to find compromises," she added. "You only talk about deals once they have been finalized."
Earlier this year, Industrial Info reported on how Germany and Denmark had signed off on the final stages of construction of the Nord Stream 2 gas pipeline despite the strict sanctions from the U.S.. For additional information, see January 27, 2021, article - Germany and Denmark Defy U.S. Sanctions to Finish Nord Stream 2 Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
