Status: 13.12.2021 6:48 p.m.
After the latest statements by Federal Foreign Minister Baerbock about the Nord Stream 2 pipeline, European gas prices have risen significantly again. And the storage tanks are still barely full.
Gas prices have climbed to a new record high. Futures contracts for December 14th reached a record value of 118 euros per megawatt hour (MWh) in the afternoon. That is a good ten percent more than on Friday. Prices had already skyrocketed in October. At that time, 117.50 euros per MWh were required.
Industry observers cited the statements of Foreign Minister Annalena Baerbock on Sunday evening as the reason for the recent increase. in the ZDF– “heute journal”, the Green politician had spoken out against the rapid commissioning of the Nord Stream 2 pipeline. She emphasized that the tube “does not meet the requirements of European energy law and that security issues are still in the room”.
Admission is suspended
The Federal Network Agency had already informed about the suspension of the approval process in mid-November. The authority demands that the operator – the state-owned Russian Gazprom group – must be organized according to German law. The EU Commission will examine whether the pipeline also complies with European law when the procedure in Germany has been completed.
Experts also explain that prices are now skyrocketing again with the increasing tensions on the border between Russia and Ukraine, where Russia has stationed 100,000 soldiers – officially a military exercise. The US government and the Polish government recently repeated their rejection of the new pipeline.
Gazprom storage tank is particularly underfilled
In addition, reports that German storage levels are still very low are unsettling – especially for those storage facilities that Gazprom owns or in which Gazprom has a stake. According to industry circles, this is not solely due to the power-political considerations of the Kremlin-affiliated company. The fill levels were low after the cold winter of 2020/2021, but the European traders were reluctant to build up stocks in the summer in view of the increased gas prices because they speculated on additional gas flows through the commissioning of Nord Stream 2.
This hesitant attitude is now noticeable. However, there are concerns from the Ukraine, according to which the Russian side is still not making full use of the transit capacities through the hostile country. How it will continue is unclear. Experts expect that approval for Nord Stream 2 could be delayed until the summer of next year – or not at all for political reasons.
Austria demands rapid start-up
Meanwhile, the Austrian Foreign Minister Alexander Schallenberg has asked the Council of European Foreign Ministers for the controversial pipeline to go into operation quickly. The project is “finished, now we should use it,” said Schallenberg on Monday in Brussels.
The politician contradicted Federal Foreign Minister Baerbock, who took part in the Brussels deliberations for the first time. With a view to the recent tensions with Moscow in the Ukraine conflict, Schallenberg emphasized that he considered it “a mistake” to keep questioning the pipeline whenever a discussion with Russia arises. Like Germany, Austria also obtains natural gas from Russia.