Putin makes sense to build Beixi No. 2 trachea, the EU still has not approved gas transmission | Blog post

Winter is approaching, and the dark cloud of energy crisis has enveloped the entire European continent. In the past year, the price of benchmark natural gas in the United Kingdom has risen by as much as 600%, and the price of Dutch natural gas futures has also risen by more than 500%.

In the face of the shortage of natural gas, the EU has a solution, such as passing the approval of Beixi 2 project as soon as possible so that Russia can increase its gas supply to Europe.

Putin at the Russian government energy development conference.

As early as the 6th of this month, Putin stated at the Russian Government’s Energy Development Conference that Europe’s own energy market was “crazy and chaotic.” The erroneous decision of the last European Commission made this situation worse, and consumers in the European continent eventually paid the bill.

According to Russian media reports, on October 18, the operator of the Beixi 2 project announced that the gas injection procedure for the first pipeline of the natural gas pipeline has been completed, and 177 million cubic meters of reserve natural gas has been filled according to the plan. Russian Deputy Prime Minister Novak stated that the Beixi No. 2 natural gas pipeline is ready and can be successfully launched in the next few days, but the premise is that the EU can issue an operating license.

Route of Beixi No. 2 Natural Gas Pipeline.

It is understood that the construction of the Beixi No. 2 natural gas pipeline was completed on September 10, but it is necessary to apply for “gas transmission” certification to formally operate, first through the certification of the German regulatory agency, and then the European Commission’s evaluation and approval. Russian media said that Russia has repeatedly urged Europe to pass the approval of Beixi 2 project as soon as possible, but the EU has not given a clear answer. German media revealed that the German Federal Network Agency plans to pass Beixi No. 2 pipeline certification in early January 2022.

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At this stage, European natural gas inventories have fallen to a 10-year low. With the arrival of the cold winter, European gas prices will continue to skyrocket. On October 18, the wholesale price of British natural gas delivered in the first quarter of 2022 soared by 9.5 %.

Seeing that the energy crisis in Europe is getting worse, key Russian figures also said that Russia can provide Europe with enough natural gas at any time. However, Russia’s largest independent natural gas producer Novatek said that it has not received any request from the European Union to increase its natural gas supply.

Industry voices pointed out that Russia and the EU may not be able to reach a consensus on the issue of natural gas supply. The first is that Russia wants to sign a long-term gas supply contract with the EU, but the EU tends to trade in the spot market; the second is that Russia wants to pass Beixi 2 Natural gas pipelines transport gas to Europe, and under the intervention of the United States, the EU is in a dilemma and wavering.

It should be mentioned that in the natural gas auction on Monday, Gazprom plans to not supply more natural gas to Europe through Ukraine’s main pipeline in November; at the same time, Gazprom will continue to increase its supply through the Polish pipeline to a limited extent. The supply of natural gas in Germany has to give priority to satisfying domestic demand and filling domestic stocks.

In other words, the natural gas market is now a seller’s market, and the Beixi No. 2 natural gas pipeline has been completed. The EU is unwilling to speed up the approval process and is asking for trouble. Even his own family members are unwilling to save their own family, why does Russia rush to find anger? But Russia’s move immediately caused Europe to fry, and natural gas prices everywhere began to soar again.

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You should know that in the past, Ukraine could charge 1 billion euros in transit fees to Russia each year. Now there are other options. Of course, Russia can save or save. Recently, the Russian ambassador to the United Kingdom stated that Russia’s gas transportation system to Europe through Ukraine has reached the upper limit, and the pipeline is aging and has not been modernized. It is dangerous to continue to operate.

The implication is that with the Beixi No. 2 natural gas pipeline in the future, the Ukrainian pipeline can be “retired.” Therefore, Russia is not breaking its promise and unwilling to increase gas supply to Europe, but is playing a game.

Besides, at the time when the international commodities rose sharply, Russia, as a major energy exporter, also made a profit, not bad for European money. The agency expects Russia’s oil and gas revenues to reach 125 billion U.S. dollars this year, which is 50 billion U.S. dollars more than last year. In addition, Russia also fell out with NATO and announced the suspension of the work of the Russian Permanent Mission to NATO from November 1.