The main reason for Germany's struggle for Nord Stream 2 is revealed


By October this year, a single gas market will be formed in Germany, the main role in which will be played by the Trading Hub Europe (THE) exchange, and the Russian Nord Stream 2 will help Germany become the main gas transit country for Europe for the subsequent distribution of gas flows in the region.


On June 1, the capacities of the German gas giants Gaspool and NCG merged, and from October these companies will join the single gas market and become the THE exchange. Thus, according to the deputy director of the National Energy Security Fund (NESF) Alexei Grivach, which he expressed to the publication EADailyGermany, as an important transshipment point for Russian and Norwegian "blue fuel", will be able to compete with the Dutch company TTF and the British NBP in the struggle for European gas flows.

However, the combination of Gaspool and NCG is not enough for the Germans to take the lead in the gas race ahead of the Dutch and British. To increase the liquidity of the FRG market, which buys 95 percent of gas, and mainly on long-term contracts, Nord Stream 2 will come in handy, which will increase gas transportation through Germany.

Thus, SP-2 will help Berlin become a global European gas hub. At the same time, Grivach believes, Gazprom will also profit from the implementation of German ambitions, although not too much - the payment for fuel transportation within the single zone will decrease.
  • Photos used: www.gazprom.com
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