Russia’s state-owned gas company Gazprom on Aug. 19 announced that it intends to transport 5.6 billion cubic meters of gas to Germany by the end of 2021 through the controversial Nord Stream 2 pipeline, due to be completed by the end of August.
However, German media Deutsche Welle news outlet recently reported, without providing sources, that the pipeline will be completed on August 23, the day preceding Ukraine’s 30th anniversary of independence.
The news sent European gas prices tumbling. Dutch gas futures for September fell from $531 for 1,000 cubic meters to $482.
The price decrease followed earlier tumult on gas markets on Aug. 18, when Gascade, a regional German gas grid operator, mistakenly announced that Nord Stream 2 was up and running, causing gas futures to fall by almost 10%.
Gas prices then rebounded after the information was identified as erroneous.
When completed, Nord Stream 2 will deliver up to 55 billion cubic meters of Russian gas to Germany under the Baltic Sea per year, bypassing Ukraine and depriving it of over a billion dollars a year in transit fees, as well as a significant geopolitical deterrent to further Russian invasion.
It is built alongside the existing Nord Stream pipeline, which has been operational since 2011.
The pipeline is currently 99% complete. It became a fait accompli in July 2021, when the U.S. and Germany put out a joint statement condoning its completion.
The move provoked anger from Ukraine, as well as from the U.S.’s NATO allies, Poland and the Baltic states.
According to Polish Foreign Minister Zbigniew Rau, Russia will use the pipeline to blackmail Ukraine and Central European countries.
Russia and Ukraine currently have a five-year agreement through 2024 that guarantees Russia will transport no less than 40 billion cubic meters through Ukraine each year and must pay Ukraine at least $7.2 billion until 2024.
Yuriy Vitrenko, the CEO of Naftogaz, Ukraine’s state-owned gas company, told reporters on Aug. 19 that Ukraine will not change its stance on Nord Stream 2.
“In our opinion, this geopolitical project must be stopped, including with sanctions from the United States,” he said.
