ECONOMY

Wed 15 Mar 2023 8:31 pm - Jerusalem Time

Nord Stream 1: a gas pipeline from Russia that has become a lifeline for Europe

Frankfurt - (AFP) - The Nord Stream 1 pipeline was a reliable supplier of gas from Russia to Europe for more than a decade, until Moscow launched its invasion of Ukraine, raising tensions on the continent and the world.


On Thursday, Russia resumed pumping gas through the pipeline, after anticipation that accompanied the suspension of this process for ten days due to previously scheduled maintenance work. This measure did not remove the ambiguity about the future of supply, as pumping is still lower than usual, which fuels fears of an energy crisis in the European Union this winter.


Here is a presentation of "Nord Stream 1", which has become a lifeline for Europe and a symbol of its dependence on energy from Russia:


Nord Stream 1 is two parallel pipelines that extend 1,224 km under the Baltic Sea, from Vyborg in Russia to Lubmin in northeastern Germany. From there, other pipeline networks transport natural gas to various parts of the European continent.


It entered service in 2011, with a pumping capacity of 55 billion cubic meters annually, making it one of the most important sources of gas supply to the continent.
The Russian state-owned company, Gazprom, has a 51 percent stake in the pipeline, while the remaining shares are divided into Germany's EON and Wintershall D, Dutch Gazoni, and France's Engie.


The project has long been seen as an example of economic cooperation between Russia and the European Union, with countries such as Germany and Italy heavily dependent on low-cost Russian natural gas.


Everything changed with the Russian invasion of Ukraine that began on February 24th.


Two days before that, Germany took a sharp turn in the economic relationship with Russia, by announcing the freezing of licensing procedures for the "Nord Stream 2" project, on which work had been completed, and aimed at doubling Russian gas imports to Europe.


The parallel pipeline project was widely criticized by countries such as Poland and Ukraine, who feared that it would give Russia and its President Vladimir Putin a weighted pressure card in the field of European energy security.


Since the war began, Prussia has limited or completely cut off gas supplies to about a dozen countries, in a move widely seen as Moscow's response to Western sanctions imposed on it in the aftermath of the attack.


In the past weeks, supplies through Nord Stream 1 have declined by about 60 percent, and were completely stopped between July 11 and July 21 due to maintenance. And resumed "Gazprom" pumping gas from Thursday, but at low levels.


While Russia says that the supply cut is due to the absence of a turbine belonging to the German company "Siemens" that is undergoing maintenance in Canada, Germany accuses Moscow of using gas as a political weapon against the West.


While it is believed that this turbine is on its way to Russia, European countries still fear that Putin will continue to exert pressure through supplies.


Cutting or significantly reducing Russian supplies will negatively affect European economies. Germany is the largest economic power on the continent, but it is the most vulnerable to the negative impact of that due to its heavy dependence on gas imports from Russia.


Berlin, like other European countries, is working to diversify its energy sources, including through purchasing quantities of liquefied natural gas. However, Germany still imports 35 percent of its gas needs from Russia, down 20 percent from what was the case before the war on Ukraine.


Germany will have difficulty filling gas storage tanks completely before the start of the cold season, unless Nord Stream 1 returns to supplying this substance at full capacity, which increases the possibility of resorting to energy savings.


German Economy Minister Robert Habeck called on his citizens to shorten the duration of showers and reduce the level of heating this winter.


The International Monetary Fund warned that reducing gas levels will lead to a decline in Germany's gross domestic product this year by 1.5 percent.


Although some analysts believe that Berlin is paying the price for a wrong policy by over-reliance on Russian gas, any crisis that leads to a contraction in the largest economic power in Europe will reverberate beyond Germany's borders.


Among the reasons for this is that Germany is among the most prominent parties that re-export Russian gas to other countries such as Austria, the Czech Republic and Switzerland.


And Constance Ztelsenmueller, a researcher at the Brookings Institution, warned that "a gas crisis in the largest economic power in the European Union will cause anxiety throughout the continent."


On Wednesday, the European Commission proposed a plan aimed at reducing gas demand by 15 percent to overcome the decline in Russian supplies, through steps including reducing the heating of some buildings, delaying the closure of nuclear power plants, and encouraging companies to reduce their needs.
Germany can also ask the European Union for the solidarity of its member states by sharing fossil fuel sources.
Ben McWilliams, an energy analyst at the Bruegel Institute, says, "Large amounts of gas are currently flowing to Germany, originating from Norway, Belgium and the Netherlands."

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Nord Stream 1: a gas pipeline from Russia that has become a lifeline for Europe

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