Germany assessed negative consequences in case of refusal of Nord Stream 2

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In his article for Handelsblatt newspaper, Oliver Hermes, head of the board of the Eastern Committee of German Economy, listed the possible negative consequences for the environment and the energy system of Europe in case Germany refuses from the Nord Stream-2 pipeline.

According to him, Germany’s rejection of relatively cheap Russian gas would be “fatal,” because the weakening of the German economy would eventually hit the EU.

“It would be fatal for Germany as an industrial region to artificially cut cheap pipeline gas before alternatives become available. The consequence would be inflated prices of gas and electricity for consumers and loss of jobs,” Hermes noted.

Even if the phase-out of coal and nuclear power in Germany does not increase gas consumption, the fuel’s production in the Netherlands, which will stop in 2022, should compensate, he said. Expensive U.S. LNG could lead to negative consequences for the environment, particularly because of the way it is produced.

In the article he also touched upon the environmental aspect. Thus, according to the expert, the pipeline “Nord Stream – 2” is modern, and therefore better protected from gas leaks than old pipelines.

Earlier in the day, it became known that Washington began talks with Berlin on the project “Nord Stream – 2”. In particular, they are to touch on the future of the pipeline, including sanctions against companies involved in the construction of the project.

Reiner Seele, head of Austrian oil and gas company OMV, said Tuesday that investors in the project are fighting for its fate and contributing to its completion. He said the slowdown affects the effectiveness of the investment.

On Feb. 12, U.S. Senators Republican Jim Risch and Democrat Gene Shaheen called on U.S. President Joseph Biden to impose sanctions on the pipeline. On the same day, the U.S. State Department called sanctions on the project one of the important tools in the current situation.