Berlin is under increasing pressure to pull the plug on Nord Stream 2, the planned gas pipeline that would link Russia and Germany below the Baltic Sea. Here is what you need to know about the massive project.
What is Nord Stream 2?
What is it for: Nord Stream 2 is a gas pipeline which would allow Germany to effectively double the amount of gas it imports from Russia. In 2017, Germany used up a record 53 billion cubic meters of Russian gas, comprising about 40 percent of Germany’s total gas consumption. Nord Stream 2’s delivery system is designed to carry up to 55 billion cubic meters (1.942 trillion cubic feet) of gas per year.
Where is it: Berlin and Moscow agreed on the 1,200 kilometer (746-mile) route, which would connect the Ust-Luga area near Saint Petersburg with Greifswald in northeast Germany. The pipes would run across the Baltic Sea, for the most part following the route of the pre-existing Nord Stream 1 pipeline, which became operational in 2011.
Who is paying for it: Russia’s energy giant Gazprom is the sole shareholder of the Nord Stream 2 AG, the company in charge of implementing the €9.5 billion ($11.1 billion) project. Gazprom is also covering half of the cost. The rest, however, is being financed by five western companies: ENGIE, OMV, Royal Dutch Shell, Uniper, and Wintershall.
Read more: Russian pipe dream hits raw European nerve
Why is it controversial?
EU countries: The planned route bypasses central and eastern European countries such as Slovakia and Poland, leaving them without a chance to collect lucrative gas transit fees. Moreover, with Russia having means to directly deliver gas to its most important buyer, Germany, it would be much easier for the Russian government to shut off existing pipelines leading through eastern Europe.
The project also runs contrary to Brussels’s efforts to wean Europe off Russian gas. In April 2018, the EU Commission refused to back the project, saying it did not contribute to the EU goals of diversifying the gas supplies. Separately, environmentalists claim the pipeline would be harmful for the flora and fauna of the Baltic Sea.
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