Russia’s Nord Stream II Gas Pipeline Approved for Completion
The Nord Stream II Pipeline is approved for construction. (Gazprom)
On October 30, the Danish Energy Agency approved construction on the final stretch of Nord Stream II, a natural gas pipeline that will run from Russia to Germany through the Baltic Sea. Denmark was the last country after Russia, Finland, Sweden and Germany to approve the pipeline. Now that Gazprom, the Russian oil company in charge of the project, has Denmark’s approval, they plan to complete the pipeline by the end of the year.
Nord Stream II is a 764 mile long underwater pipeline that transports natural gas from Russia to Western Europe. Much of the pipeline has already been laid. Upon its completion, Nord Stream II will double the capacity of Gazprom’s Nord Stream pipeline which was completed in 2011.
The process of approval for Nord Stream II was delayed due to the controversy surrounding its political and environmental implications. Approval by Denmark took months after Gazprom submitted three different applications with different potential pipeline routes to the Danish government. U.S. lobbying and legislation has also contributed significantly to the project’s construction delay.
Western Europe’s gas production is on the decline while demand is stronger than ever. According to Gazprom, the Nord Stream II pipeline will “further diversification of energy routes to Europe,” creating more security of supply in response to the continent’s high demand. The project is supported by European leaders such as German Chancellor Angela Merkel, who emphasizes Europe’s need to diversify its energy sources. The pipeline is projected to lower oil prices for millions of consumers in Europe.
However, the proposed pipeline was met with heavy opposition from those who fear the spread of Russian influence. Opponents of the project, including the United States, Ukraine, France, and the Baltic nations, argue that the pipeline will create a Western dependency on Russian oil. According to a senior fellow at the German Marshall Fund in Brussels: “The project is very politically sensitive because of the way it pits Europe’s economic interests against Europe’s broader geopolitical and strategic interests.”
Ukraine has voiced strong opposition to Nord Stream II. Ukrainian President Volodymyr Zelensky expressed concern that the pipeline strengthens Russia and bypasses Ukraine’s economic involvement in the regional oil market. According to the BBC, before Nord Stream II, Ukraine received $3 billion a year from transporting Russian gas to European countries. Nord Stream II bypasses Ukraine entirely, which will result in a huge hit to the Ukranian economy.
The US Congress and President Trump have also expressed concern about the project. Congress has placed sanctions on companies providing assistance to construction, while President Trump has warned that the pipeline “makes Germany a hostage of Russia.”
Nord Stream II has also drawn resistance from environmentalists. According to a recent study by the Climate Accountability Institute, Gazprom is the world’s 3rd worst carbon emitter. Specifically, Russian environmental activists have criticized Nord Stream II for harming the Kurgalsky reserve and the many endangered species that reside within it.
Gazprom’s deputy chairman said earlier this fall that reducing Gazprom’s carbon emissions could have “dangerous consequences” for the Russian economy. Russia is the fourth-largest emitter of greenhouse gases globally, despite having only the 11th-largest economy and the ninth-largest population.