The start of Quick Nord Stream 2 would calm the record gas

An early start of the Nord Stream 2 gas pipeline between Russia and Germany could help calm record gas prices in Europe, Kremlin spokesman Dmitry Peskov told reporters on Wednesday as Moscow awaits clearance regulatory for the start of gas flows.

Russia announced last week that it had completed construction of the $ 11 billion Nord Stream 2 to Germany, doubling its capacity to export gas via the Baltic Sea. However, starting gas flows via the road requires approval from the German regulator, which can take up to four months.

“Without a doubt, the faster launch of Nord Stream 2 would significantly balance the parameters of natural gas pricing in Europe, including in the spot market. It is obvious. The demand is high,” Peskov said during the report. a daily conference call with journalists.

Spot prices in the Dutch gas hub TTF hit a record high of 79 euros per megawatt hour on Wednesday, or more than $ 960 per 1,000 cubic meters, amid low levels of underground gas storage in Europe.

A record rise in energy prices that has pushed electricity costs in Europe to multi-year highs is not expected to subside until the end of the year, indicating a costly winter heating season for consumers.

Last week Russian President Vladimir Putin said European customers of Kremlin-owned energy giant Gazprom “rub their hands with glee” over long-term gas contracts which are tied to oil prices and are less expensive. volatile.

Gazprom chief Alexei Miller said on Wednesday gas would not start flowing through Nord Stream 2 on October 1, as reported by Bloomberg.

ROSNEFT’S GAS ACTIVITY

Interfax quoted Deputy Prime Minister Alexander Novak as saying on Wednesday that the Russian Energy Ministry is due to prepare a report in the coming days on the possibility of Rosneft exporting gas to Europe via the Nord Stream 2 pipeline.

At present, Gazprom holds the exclusive rights for Russian pipeline gas exports and EU regulations, the third energy package, require third party access to pipelines.

Kirill Tachennikov of Moscow-based financial firm Sinara said it was still not clear whether Rosneft’s possible involvement in gas exports via Nord Stream 2 would help Russia increase its gas supplies via the road.

“Regarding the third energy package, the EU’s position on the access of other Russian companies to the new gas pipeline is unclear,” he said.

The Department of Energy did not immediately respond to requests for comment. Rosneft declined to comment.

Oil-focused Rosneft and its shareholder, BP, have long sought to export Russian natural gas to Europe, as exports are more lucrative than domestic sales. Rosneft shares in Moscow jumped more than 4% in the day in afternoon trading.

Igor Sechin, the powerful Rosneft leader and longtime ally of President Vladimir Putin, has repeatedly lobbied the Kremlin to restrict Gazprom’s export rights.

Gazprom said its natural gas exports outside the former Soviet Union increased 17.4 percent year-on-year to 138.6 billion cubic meters.

Peskov said the possibility of Rosneft exporting gas to Europe had been raised several times, but no decision had yet been made.

(Reporting by Vladimir Soldatkin, Dmitry Antonov, Olesya Astakhova and Oksana Kobzeva; editing by David Evans, Elaine Hardcastle)