German Business Association Does Not Foresee Nord Stream 2 Lowering Gas Prices Soon

German Business Association Does Not Foresee Nord Stream 2 Lowering Gas Prices Soon

BERLIN (UrduPoint News / Sputnik - 22nd September, 2021) The German Eastern business Association chairman said on Tuesday that the organization does not expect the Nord Stream 2 project to contribute to a decline in gas prices in the near future, as the required certification procedure must be carried out in full compliance with EU rules.

Gas prices have gone up dramatically recently, and German media reported on the intention of some energy companies to increase gas prices for consumers. On Friday, Gazprom CEO Alexey Miller said prices might soar again, as gas reserves in European reservoirs are insufficient.

"We do not expect that the Nord Stream 2 gas pipeline lying on the bottom of the Baltic Sea will ease the situation in the near future. This project must be certified in accordance with the EU rules and irrespective of current pricing. In this matter, thoroughness is more important than haste," Oliver Hermes said in a statement.

Hermes noted that the colossal rise in gas prices in 2021 after fall of last year was caused by a number of factors.

"Along with the restoration of the global market, it can be accounted for by a range of other reasons � for example, the necessity of technical and maintenance service of European pipelines, as well as a high demand for gas in Asia," the chairman said.

The association head also backed the efforts of the German government to facilitate gas transit through the territory of Ukraine after 2024.

On September 10, Russain energy giant Gazprom announced that the Nord Stream 2 twin pipeline, designed to carry natural gas from Russia to Germany beneath the Baltic Sea, was completed. But the date of the start of gas supplies remains unclear.