The German division of Russia’s Gazprom subsidiary Nord Stream 2 announced on March 3rd that it will wind up operations, according to Reuters.
Gas for Europe Gmbh was set up in order to comply with European energy rules that required that pipeline owners be a separate entity to the company supplying gas to ensure fair competition.
Though completed in September 2021, the certification for the estimated €9.5 billion project had been delayed for several months and has now been halted as a result of Russia’s invasion of Ukraine. The pipeline was half-funded by Gazprom with the balance of financing coming from Britain’s Shell, Austria’s OMV, France’s Engie and Germany’s Uniper and Wintershall.
Nord Stream AG commissioned the building of the pipeline as a way of bypassing the existing route via Ukraine by transporting gas directly to Germany via the North Sea. It is estimated that 40% of European gas imports come from Russia.
