Novak: Nord Stream 2 clearance may cool gas prices in Europe

Novak: Nord Stream 2 clearance may cool gas prices in Europe

Russian Deputy Prime Minister Alexander Novak said on Wednesday that certification of the Nord Stream 2 undersea gas pipeline, which expects clearance from a Germany’s regulator, could cool soaring European gas prices.

“I think there are two factors, which could somewhat cool off the current situation. First of all, of course, this is, definitely, completion of certification and the fastest clearance for gas supplies via the completed Nord Stream 2,” Novak told a meeting of government officials and heads of energy companies.

Novak said an increase in gas sales on Gazprom’s Electronic Sales Platform could also calm prices. Gazprom set up the ESP in 2018 for gas sales to Europe to supplement the existing long and mid-term contracts. It has suspended gas sales for delivery in 2022 since late August.

President Vladimir Putin, who chaired the meeting, has agreed with the proposed increase, adding that Russia should meet its domestic gas needs first.

Novak said some speculative trade could also be behind the soaring gas prices, which he said did not reflect the fundamentals of supply and demand, Reuters reported.

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