With Russian-European relations at a low ebb, now is a tricky time to push forward a new energy agreement between the two. Nevertheless, on September 4, a consortium of energy companies—including Gazprom, Shell, ENGIE, OMV, BASF, and E.ON—signed a shareholders’ agreement on the Nord Stream 2 pipeline. With a total capacity of 55 billion cubic meters (bcm), Nord Stream 2—which directly connects Russia and Germany beneath the Baltic Sea—will double the capacity of Nord Stream 1, which has been in operation since 2011.
Unsurprisingly, the prospect of importing additional Russian gas into the EU has raised many red flags. Analysts in …read more