July 16, 2022
image source,Reuters
In the context of the Ukraine war and Western sanctions against Russia, Nord Stream 1’s important influence on the world energy pattern and geopolitics has emerged.
In the context of the war in Ukraine and Western sanctions against Russia, the important influence of Nord Stream 1 became apparent. How does Nord Stream 1, the oil and gas pipeline from Russia to Germany via the Baltic Sea, affect the world’s energy landscape and geopolitics?
In July 2022, in the name of annual maintenance of the pipeline, Russia suspended the delivery of natural gas to the EU through the Baltic Sea pipeline Nord Stream 1 for 10 days, which caused many contradictions and concerns in Western countries.
Although the Nord Stream 2 natural gas pipeline project, which was supposed to develop an important part of Russia’s European energy relations, was suspended indefinitely due to the Russian-Ukrainian war, the Nord Stream 1, a key energy pipeline for Russia and the European Union, immediately triggered new international conflicts.
This article will sort out the key role of the Beixi No. 1 natural gas pipeline project in the energy game between Russia and the West, as well as the contradictions between Russia and the West and the contradictions within the West caused by it.
What is Beixi No. 1
Nord Stream 1 and 2 are two parallel natural gas pipelines from Russia to Germany via the Baltic Sea.
Before Nord Stream 1 and 2, Germany and other Western European countries imported natural gas from Russia through other European countries, including Belarus, Ukraine, Poland and other countries in Eastern Europe. These land pipelines include the “Yamal-Europe” through Poland and the “Brother” through Ukraine in the picture below.
Germany and other countries have to pay high transit fees to Eastern European countries such as Poland and Ukraine, and have political influence. When Russia and Ukraine and other countries have conflicted in the past, oil and gas supplies to Europe may also be affected.
Therefore, as early as the tenure of former German Chancellor Gerhard Schroeder, Germany and Russia have begun to study the joint venture to open the Nord Stream natural gas pipeline project directly to the two countries, so as to avoid various political and economic problems that may arise from the natural gas pipeline bypassing Eastern Europe. Schroeder also personally serves as a director of the Nord Stream Gas Pipeline Project Company.
Nord Stream 1 and 2 are two parallel natural gas pipelines from Russia to Germany via the Baltic Sea. Previously, the Yamal-Europe and Brothers and other land pipelines through which Russia transported oil and gas to Europe.
The North Stream No. 1 pipeline, the longest submarine pipeline in the world at that time, was completed in May 2011 and officially put into use on November 8 of the same year. Prime Ministers of Germany, France, the Netherlands and Russia all attended the opening ceremony in person.
The Nord Stream 1 pipeline has normally supplied Germany and Western European countries with about 55 billion cubic meters of natural gas per year for more than a decade. In 2021, the gas transmission volume will reach 59.2 billion cubic meters, becoming an important part of the international energy pattern, and also affecting the relations between Russia and Germany and other Western European countries, as well as the dynamics of the international energy field.
Central and southwestern European countries such as the Netherlands, France, Italy, Austria and the Czech Republic all receive some Russian natural gas from Nord Stream 1. At the same time, Russian natural gas is also transported to various countries through pipelines on land such as Ukraine.
The Ukraine War and the EU’s Energy Shift
As an energy power, Russia’s direct access to the Nord Stream No. 1 and No. 2 of Germany, the largest manufacturing power in Europe, also affects the price of the international energy market. As early as in the second half of 2021, when the situation was tense before the outbreak of the Ukrainian war, Nord Stream 2 may be suspended, and the supply of No. 1 may also be affected by the tense relations between Russia and the West. Market forecasts have caused international oil and gas prices to rise sharply.
The construction of Nord Stream 1 and 2 was criticized by some people in the West, especially the United States, at the beginning, believing that this would increase Europe’s energy dependence on Russia. In February 2022, the Russian-Ukrainian war broke out, and Germany suspended the already completed Nord Stream 2 project.
Russia supplies 40% of the EU’s natural gas and 27% of its imported oil. The EU pays Russia around 400 billion euros a year in return. After the outbreak of the Ukraine war, the United States called on Western countries to impose comprehensive sanctions on Russia.
In March 2022, the new energy policy REPowerEU announced by the EU announced its decision to finally stop relying on or even use Russian oil and gas, and accelerate the transition to green energy, but said that it must also invest in the construction of oil and gas pipelines from other countries and regions to the EU. Its stated goal is to cut Russian gas imports by two-thirds by 2022.
Two floating terminals for LNG deliveries will be ready by the end of 2022, German officials said. These facilities could store natural gas from North America or the Middle East in the future.
Beixi No. 1 and internal conflicts in Western countries
After the outbreak of the Ukrainian war, OPEC, an important international oil-producing country group other than Russia, refused to significantly increase production. International oil and gas prices continued to soar, and Western countries were faced with high inflationary pressures.
Eastern European countries and Western public opinion accuse the EU of actually funding Russia’s continued war in Ukraine through the use of Russian energy.
Although the United States has called on European countries to immediately stop the use of Russian oil and gas, the European Union, especially Germany and other Western European countries, still need supplies including Nord Stream 1 to a large extent, especially to store enough for the winter of 2022 to maintain the economy and the economy. The natural gas for society to function.
Germany’s Siemens Energy is responsible for the maintenance of part of the Nord Stream 1 equipment, including the Siemens turbines sent to Germany by Russia for repair. Siemens Energy sent it to its Canadian branch for repairs.
image source,Reuters
Siemens Energy needs to send its Nord Stream pipeline equipment to its Canadian division for repairs, adding Canada to the international energy and geopolitical controversy.
Canada refused to return the Nord Stream 1 natural gas pipeline turbines sent by Germany’s Siemens for overhaul to Russia, citing sanctions against Russia.
In mid-June, the Russian natural gas company Gazprom cut the transmission volume of the Nord Stream 1 natural gas pipeline to 40% of the usual level on this ground, which immediately affected the supply of energy recipients Germany and other Western European countries, triggering a rift. Dissatisfaction in many European countries such as Germany.
After diplomatic coordination, the Canadian government said it had returned a repaired Siemens turbine to Germany for use in the pipeline.
But the move angered the Ukrainian government, with Kyiv accusing Canada of breaking sanctions on Moscow and pressing for diplomatic and civil protests.
However, Germany and the United States have since expressed their support for Canada.
Russian gas supply cut off?
Nord Stream 1 maintenance is normal every summer, when gas demand is lower than in winter, but the worry is that Russia may not reopen the tap.
On the occasion of the annual maintenance of Nord Stream 1 in July 2022, German Economy Minister Habeck warned that EU countries must prepare for Russia’s interruption of supplies.
The German government is concerned that Russia may reduce or permanently cut gas supplies to Western Europe.
The shutdown of the Nord Stream 1 pipeline has also affected Italy, which energy group Eni said would see a sharp reduction in gas it receives from Gazprom.
image source,AFP
Nord Stream 1 affected many countries in Central and Western Europe, with Germany, a manufacturing powerhouse, bearing the brunt.
The head of the International Energy Agency, Fatih Birol, has warned that Russia may cut off gas supplies to Europe entirely, and Europe needs to prepare now.
Russia has cut gas supplies to Poland, Bulgaria, the Netherlands, Denmark and Finland after they refused to comply with new payment plans, including settlements in rubles.
Last year, Germany’s other major suppliers of natural gas were Norway (31%) and the Netherlands (13%). Germany is now getting more gas from them because of reduced imports from Russia.
If Russian supplies were suddenly cut overnight, it could plunge Europe’s largest economy into a deep recession because the entire industry relies on natural gas, which most German households use for heating.
According to the German government’s contingency plan, in an emergency, Germany will give priority to the supply of natural gas to key services and demand sides such as homes and hospitals.
