Germany has stopped accepting Nord Stream 2 pipelines, oil prices rising | Oil and Gas Issues

The US and other European countries have criticized the pipeline over concerns that Europe relies heavily on Russian gas.

Declining natural oil prices in European households and businesses could be even more severe after a German power regulator on Tuesday hit the brakes on a green light needed for Russian gas to travel to Europe via the long-running Nord Stream 2 pipeline.

Construction was completed on Nord Stream 2 earlier this year, but it has not yet been completed. The pipeline, owned by Russian gas giant Gazprom and funded by major European companies, passes through Ukraine to pump Russian gas under the Baltic Sea into Europe.

At the height of the geopolitical crisis, Nord Stream 2 has attracted criticism from the United States, Ukraine and other European countries who are concerned that this will lead to a growing European reliance on Russian gas.

Ukraine also stops wasting money on pipeline transport when it goes into operation.

But geopolitical concerns could be a source of comfort to European and British consumers who are causing the most natural gas damage this year, given the global power crisis and uncertainty when Russia will start pumping more gas into Europe.

Prices for natural gas rose 9 percent on Tuesday after a German regulator suspended its certification process for a Nord Stream 2 user.

The German superintendent, Bundesnetzagentur, said the licensing process had been suspended because Swiss pipeline operators were required to operate a company in accordance with German law.

“After a careful review of the document, Bundesnetzagentur confirmed that it would be possible to verify the Nord Stream 2 pipeline operator if the operator was legally regulated under German law,” the official said.

The supervisor added that the Swiss user has formed a support group in Germany and that the legal process will continue once the user has transferred large assets and operating budgets to the company.

Last month, Russian President Vladimir Putin said his country could help reduce Europe’s natural gas shortages as German authorities granted permission for natural gas to flow freely through Nord Stream 2.

Russia has already extracted gas from the Baltic Sea via Nord Stream 1, which has a capacity of 55 billion cubic meters.

Nord Stream 2 will double that volume and make Germany a gas distribution center.