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NewBase Energy News 19 September 2022 No. 1550 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Dubai reduced carbon emissions by 21% in 2021
The National + NewBAse
Dubai reduced its carbon emissions by 21 per cent in 2021, in line with its ambitions to develop a
low-carbon economy, the Dubai Supreme Council of Energy said on Monday.
The emirate achieved this by increasing the share of solar energy and enhancing the operational
efficiency in factories and facilities. It also carried out waste recycling in power and water production,
industry, ground transport and waste treatment, the council said in a statement.
The details were revealed during a meeting of the council, led by Sheikh Ahmed Al Maktoum, which
reviewed the emirate’s efforts to reduce carbon emissions.
The move is part of the Dubai Carbon Abatement Strategy 2030, which aims to reduce 30 per cent
of carbon emissions in the emirate by the end of 2030 and is aligned with the UAE’s efforts to
achieve net zero carbon emissions by 2050.
“The meeting reviewed our road map and plans that include national initiatives and strategies to
achieve net-zero carbon emissions and consolidate a low-carbon economy,” said Saeed Al Tayer,
vice chairman of the Dubai Supreme Council of Energy.
More than 2.5 million photovoltaic modules have been
fitted during phase 5 of the project.

Among the initiatives currently being undertaken in the emirate is the Dubai Clean Energy Strategy
2050, which seeks to ensure that 100 per cent of the emirate's power production capacity is from
clean energy sources by 2050.
Dubai's planned Dh40 billion ($10.9bn) investment in electricity and water projects over the next
five years will focus on renewables, clean energy, electricity and water transmission and distribution
networks to meet growing demand in the emirate.
The investment plans, announced by the Dubai Water and Electricity Authority, come as energy
demand in Dubai continues to grow, increasing 6.3 per cent year on year in the first half of 2022,
driven by sustained economic recovery in the emirate.
Demand for energy in the emirate during the first six months of this year reached 23,096 gigawatt
hours, Dewa said in July.
The utility is developing the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site
solar project in the world, which will have a capacity of 5,000 megawatts upon completion in 2030,
with a total investment of Dh50bn.
“The development and implementation of the existing programmes and projects had a positive and
tangible impact, reflected in the carbon emission reduction rates over the past 10 years," said Mr Al
Tayer.
"This highlighted the efforts made by the relevant authorities that support a sustainable green
economy and the UAE’s vision to achieve net-zero carbon emissions."

Oman partners with Shell, TotalEnergies and OQ for natural gas
exploration and development. Oman Observer + NewBase
Oman has signed an exploration and production sharing agreement with Shell Integrated Gas
Oman, TotalEnergies and Omani integrated energy company OQ to develop natural gas resources
and condensate.
The exploration and production sharing
agreement (EPSA) in the onshore Block 11
aims to “explore, appraise and develop
natural gas resources and condensate in
Block 11”, the ministry said in a statement
on Friday.
Block 11 is located in the western side of the
country near the Um Asamim Sabkha.
The agreement establishes Shell as the
operator of the Block 11, holding a 67.5 per
cent working interest, with OQ and
TotalEnergies holding 10 per cent and 22.5
per cent interest, respectively.
“This agreement strengthens the strategic
relations with partners in the sector such as
Shell, TotalEnergies, OQ and others to
ensure Oman’s energy security and attract
more foreign investment, adding the highest
value to the local supply chain,” Salim Al
Aufi, Oman’s Minister of Energy and
Minerals, said.
The first stage of activities under the
agreement will involve seismic acquisition in
late 2022, with a first exploration well
planned to be drilled in 2023.
“Shell’s entry into this block signifies a
further commitment to Oman, while
enhancing and diversifying its gas supply. For Shell, this partnership will strengthen our integrated
gas business and generate value for Oman and our shareholders,” Walid Hadi, Shell’s senior vice
president, and country chair in Oman, said.
Block 11 contains undeveloped discoveries and exploration potential, TotalEnergies said.
“Entry into the Block 11 gives us the opportunity to unlock additional potential to meet domestic and
export gas demand,” said Laurent Vivier, senior vice president for Middle East and North Africa,
exploration and production, TotalEnergies.
In December, Oman signed a concession agreement with Shell Integrated Gas Oman BV, OQ and
Marsa Liquefied Natural Gas, to develop and produce natural gas from Block 10 of the country's
Saih Rawl gasfield.

Putin tells Europe: if you want gas then open Nord Stream 2
Reuters + NewBase
President Vladimir Putin on Friday denied Russia had anything to do with Europe's energy crisis,
saying that if the European Union wanted more gas it should lift sanctions preventing the opening
of the Nord Stream 2 pipeline.
Speaking to reporters after the Shanghai Cooperation Organisation summit in Uzbekistan, Putin
blamed what he called "the green agenda" for the energy crisis, and insisted that Russia would fulfil
its energy obligations.
"The bottom line is, if you have an urge, if it's so hard for you, just lift the sanctions on Nord Stream
2, which is 55 billion cubic metres of gas per year, just push the button and everything will get going,"
Putin said.
Nord Stream 2, which lays on the bed of the Baltic Sea almost in parallel to Nord Stream 1, was
built a year ago, but Germany decided not to proceed with it just days before Russia sent its troops
into Ukraine on Feb. 24.
Russian President Vladimir Putin speaks during a news conference following the Shanghai
Cooperation Organization (SCO) summit in Samarkand, Uzbekistan September 16, 2022.
Sputnik/Sergey Bobylev/Pool via REUTERS
European gas prices more than doubled from the start of the year amid a decline in Russian
supplies. This year's price surge has squeezed struggling already consumers and forced some
industries to halt production.

Europe has accused Russia of weaponising energy supplies in retaliation for Western sanctions
imposed on Moscow over its invasion of Ukraine. Russia says the West has launched an economic
war and sanctions have hampered Nord Stream 1 pipeline operations.
Russia has cut off gas supplies to several countries, includingBulgaria and Poland, because they
refused to pay in roubles rather than the currency of the contract.
Russian gas giant Gazprom (GAZP.MM) also said earlier this month the Nord Stream 1 pipeline,
Europe's major supply route, would remain shut as a turbine at a compressor station had an engine
oil leak, sending wholesale gas prices soaring.
What is Nord Stream 2?
The more than $11 billion project that has bothered Germany’s allies was completed in September
but has been idle pending certification by Germany and the European Union.
Nord Stream 2 was halted as it was set to ease pressure on European consumers facing soaring
energy prices and governments that have spent billions of dollars to limit the impact on their citizens.
The 1,200-kilometer underwater Nord Stream 2 follows the same path as Nord Stream 1, which was
finished more than a decade ago.
Like Nord Stream 1, the idle pipeline is capable of transporting 55 billion cubic meters of gas per
year from Russia to elsewhere in Europe, potentially boosting the continent’s access to relatively
low-priced gas when domestic production is declining.
Why did Germany support Nord Stream 2?
Germany, which gets half its gas from Russia, maintained the pipeline was mainly a commercial
project to diversify energy supplies for Europe.
Germany aggressively pursued the pipeline for years, working through the poisoning of Kremlin
critic Alexei Navalny, several spying scandals and multiple cyberattacks.
Even as some 150,000 Russian troops steadily assembled on Ukraine’s borders, German
Chancellor Olaf Scholz did not mention the name of the pipeline when asked about possible
sanctions against Russia.
Why is Germany taking action now?
On Tuesday, Russian President Vladimir Putin decided to recognize the Russian-occupied regions
of Donetsk and Luhansk as independent. Hours later, German Chancellor Olaf Scholz said he had
requested a halt to the pipeline approval process, despite record high gas prices in Europe.
Scholtz said Russia’s decision to recognize the independence of the rebel-held areas was a “serious
break of international law” and that it was necessary to “send a clear signal to Moscow that such
actions won’t remain without consequences.”
Scholz, who succeeded Angela Merkel in December, also said he withdrew a report that Germany
was required to submit on how the pipeline would affect energy security.
Why does Russia want the pipeline?
The Russian state-owned gas company Gazprom, which owns half of Nord Stream 2, said the
pipeline would meet Europe’s needs for relatively affordable gas and supplement existing pipelines
in Ukraine and Belarus.

Gazprom said Nord Stream 2 would offer an alternative to Ukraine’s aging pipeline that it says needs
refurbishment. The gas giant also said the new pipeline would lower costs by saving transit fees
paid to Ukraine and avoid gas cutoffs like those that occurred briefly in 2006 and 2009 due to Russia-
Ukraine disputes over prices and payments.
Europe is in growing need of gas because it is replacing decommissioned coal and nuclear plants
before the energy they produce can be replaced by renewable sources such as wind and solar.

Turkey Seeks Out Russian Help for Economy Under Pressure
Source: Bloomberg + NewBase
Turkey’s President Recep Tayyip Erdogan is seeking even closer financial ties with Russia as he
attempts to stabilize a troubled economy ahead of next year’s elections, according to Turkish
officials.
Among his goals are price discounts and lira payments for energy imports, said several Turkish
officials who asked not to be identified discussing sensitive information. Turkey’s natural-gas bill is
set to exceed $50 billion this year and Russia is its biggest energy supplier.
At a meeting with Russia’s Vladimir Putin in Uzbekistan on Friday, Erdogan would seek a 25%
discount for natural gas and an agreement that Turkey can pay some of its bill in lira, said senior
Turkish officials with direct knowledge of the matter.
Putin, Erdogan Agree On Partial Gas Payment in Rubles: Novak
People familiar with Moscow’s position didn’t confirm talks about discounts on gas to Turkey. Putin
said Friday that an earlier deal for Ankara to pay for a quarter of its gas imports in rubles would take
effect soon.
“As you know, our agreement for supplies of Russian gas to Turkey to be paid for 25% in rubles will
begin to work in the nearest future,” the Russian leader told Erdogan as they met for the third time
in three months at a multilateral summit. In the televised part of his comments at the start of their
talks, Putin made no mention of taking payment in lira or offering a discount.
Some money has already flowed from Russia. State-owned Rosatom Corp. sent around $5 billion
in July to a subsidiary that’s building a nuclear power plant in Turkey. That transfer boosted Turkey’s
official reserves.
Officials say Erdogan eyeing discounts, lira gas payments
Putin and Erdogan met on Friday for talks in Uzbekistan

Turkey is expected to run a current-account deficit of $47 billion at the end of this year, and the lira’s
poor performance is making it more costly to cover debt. Soaring global energy prices have added
an additional burden.
Any help to shore up the economy could provide a major lift for Erdogan, whose poll ratings are
hovering at historic lows as inflation speeds past 80% less than a year before elections scheduled
for June.
Russia Leverage
For NATO member Turkey, the relationship with Moscow is not just about potential financial support
but a strategic alliance it can use to seek leverage with the West.
Erdogan has had to navigate a tricky position since Russia’s invasion of Ukraine. He’s presented
Turkey as a mediator, and he later helped negotiate a deal to resume grain shipments from
Ukraine’s Black Sea ports. While helping to arm Kyiv, he’s also publicly defended Putin against
sanctions and urged nations not to “underestimate” Russia.
Erdogan’s relations with Ukraine, including the supply of weapons such as drones, have also long
rankled Moscow. But Ankara remains a key partner for Putin as international sanctions imposed
over Russia’s invasion shutter other routes for trade and investment. This comes after Turkey and
Russia have deepened ties over recent years despite frictions over the war in Syria.
Erdogan’s also turning to Gulf Arab states for financial help. Treasury and Finance Minister Nureddin
Nebati is leading the efforts to secure further assistance from Qatar and the United Arab Emirates,
after the two extended swap lines with the Turkish central bank, Turkish officials said.
Erdogan and Saudi Crown Prince Embrace as Years of Rancor End
Turkish policymakers have been pushing for similar deals with Saudi Arabia since a rapprochement
began earlier this year. They had hoped for progress when Saudi Arabia’s de facto ruler, Crown
Prince Mohammed bin Salman, visited Ankara in a June trip that ended years of rancor. Turkish
officials have said discussions on the topic has stalled but are seeking to revive them this month.
Saudi Arabia’s Finance Ministry and the kingdom’s Center for International Communication didn’t
respond to a request for comment.

U.S. looks to rival Europe and Asia with massive floating
offshore wind plan. CNBC - Anmar Frangoul + NewBase
The White House said Thursday it was targeting 15 gigawatts of floating offshore wind capacity by
the year 2035, as it looks to compete with Europe and Asia in the nascent sector.
“The Biden-Harris Administration is launching coordinated actions to develop new floating offshore
wind platforms, an emerging clean energy technology that will help the United States lead on
offshore wind,” a statement, which was also published by U.S. Department of the Interior, said.
The announcement said the 15 GW goal would provide sufficient clean energy to power more than
5 million homes. It builds on the administration’s aim of hitting 30 GW of offshore wind capacity by
2030, an existing ambition which will mostly be met by fixed-bottom installations.
Alongside the 15 GW ambition, a “Floating Offshore Wind Shot” would “aim to reduce the costs of
floating technologies by more than 70% by 2035, to $45 per megawatt-hour,” the statement added.
“Bringing floating offshore wind technology to scale will unlock new opportunities for offshore wind
power off the coasts of California and Oregon, in the Gulf of Maine, and beyond,” it said.
Floating offshore wind turbines are different to fixed-bottom offshore wind turbines, which are rooted
to the seabed. One advantage of floating turbines is that they can be installed in far deeper waters
compared to fixed-bottom ones.
In a fact sheet outlining its plans, the U.S. Department of Energy said around two thirds of America’s
offshore wind potential existed “over bodies of water too deep for ‘fixed-bottom’ wind turbine
foundations that are secured to the sea floor.”
 Floating offshore wind turbines are different to bottom-fixed
offshore wind turbines, which are rooted to the seabed.
 One advantage of floating turbines is that they can be installed
in far deeper waters compared to bottom-fixed ones.
 In recent years, a number of big companies have made plays in
the emerging floating offshore wind sector.

“Harnessing power over waters hundreds to thousands of feet deep requires floating offshore wind
technology — turbines mounted to a floating foundation or platform that is anchored to the seabed
with mooring lines,” it said. “These installations are among the largest rotating machines ever
constructed.”
In recent years, a number of large companies have made plays in the floating offshore wind sector.
Back in 2017, Norwegian energy firm Equinor — a major player in oil and gas — opened Hywind
Scotland, a five turbine, 30 megawatt facility it calls the “world’s first floating wind farm.” Last year
also saw a number of major developments in the emerging industry.
In Aug. 2021, RWE Renewables and Kansai Electric Power signed an agreement that would see
the two businesses “jointly study the feasibility of a large-scale floating offshore wind project” in
waters off Japan’s coast.
Norwegian company Statkraft also announced that a long-term purchasing agreement related to a
large floating offshore wind farm off the coast of Aberdeen, Scotland, had started. And a few months
later, in Dec. 2021, plans for three major offshore wind developments in Australia — two of which
are slated to incorporate floating wind tech — were announced.
When it comes to offshore wind more broadly, the U.S. has a long way to go to catch up with Europe.
The country’s first offshore wind facility, the 30 MW Block Island Wind Farm, only started
commercial operations in late 2016.
In comparison, Europe installed 17.4 GW of wind power capacity in 2021, according to figures from
industry body WindEurope. Change is coming, however, and in Nov. 2021 ground was broken on
a project dubbed the United States’ first commercial scale offshore wind farm.

NewBase September 19 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls more than 1.8% on demand fears and strong dollar
Reuters + NewBase
Oil fell by more than 1.5% on Monday, pressured by expectations of weaker global demand and by
U.S. dollar strength ahead of possible large increases to interest rates, though supply worries limited
the decline.
Central banks around the world are certain to increase borrowing costs this week and there is some
risk of a blowout 1 percentage point rise by the U.S. Federal Reserve.
"The upcoming Fed meeting and the strong dollar are keeping a lid on prices," said Tamas Varga
of oil broker PVM. Brent crude for November delivery fell $1.89, or 1.73%, to $89.62 a barrel by
12.13 GMT. U.S. West Texas Intermediate (WTI) for October dropped $1.85, or 2.17%, to $83.26.
Oil price special
coverage
 Strong dollar weighs as Fed rate decision looms
 Supply concerns limit decline
 Easing COVID-19 restrictions in China could lend support

A British public holiday for the funeral of Queen Elizabeth was expected to limit activity on Monday.
Oil also came under pressure from hopes of an easing of Europe's gas supply crisis. German buyers
reserved capacity to receive Russian gas via the shut Nord Stream 1 pipeline, but this was later
revised and no gas has been flowing. read more
Crude has soared this year, with the Brent benchmark coming close to its record high of $147 in
March after Russia's invasion of Ukraine exacerbated supply concerns. Worries about weaker
economic growth and demand have since pushed prices lower.
The U.S. dollar stayed near a two-decade high ahead of this week's decisions by the Fed and other
central banks. A stronger dollar makes dollar-denominated commodities more expensive for holders
of other currencies and tends to weigh on oil and other risk assets.
The market has also been pressured by forecasts of weaker demand, such as last week's prediction
by the International Energy Agency that there would be zero demand growth in the fourth
quarter. read more
Despite those demand fears, supply concerns kept the decline in check.
"The market still has the start of European sanctions on Russian oil hanging over it. As supply is
disrupted in early December, the market is unlikely to see any quick response from U.S. producers,"
ANZ analysts said.
Easing COVID-19 restrictions in China, which had dampened the outlook for demand in the world's
second-biggest energy consumer, could also provide some optimism, the analysts said.

NewBase Specual Coverage
The Energy world –September -01 -2022
Gas pipeline Nord Stream 2 links Germany to Russia , EU
cleanenergywire.org + NewBase
The construction of the controversial natural gas pipeline Nord Stream 2 has been completed with
some delay, but Russia's war against Ukraine means chances of it going into operation are virtually
zero. Germany and other countries in the European Union have announced they are weaning
themselves off Russian fossil fuel supplies. The pipeline under the Baltic Sea has been the subject
of heated debate for years.
The project would allow additional Russian gas to flow directly to Germany. Proponents argue the
pipeline is a commercial investment that is key to Europe's supply security, while opponents criticise
Nord Stream 2 on environmental, geopolitical, and security grounds. [UPDATES with decision to
phase out Russian energy deliveries, write-downs of loans]
Recent developments
Gazprom announced in September 2021 that the pipeline construction has been finished. However,
Russia's war against Ukraine means chances of it going into operation are virtually zero.
On 22 February 2022, two days before Russia's invasion, chancellor Olaf Scholz announced he had
ordered the economy ministry to withdraw a supply security report which is an essential element for
certification, effectively putting the process on hold. This came as a reaction to Russia's president
Vladimir Putin officially recognising two breakaway regions of eastern Ukraine.
While - officially - the project is on hold only, a scenario for its revival is difficult to imagine
as Germany and other countries in the European Union have announced they are weaning
themselves off Russian fossil fuel supplies. The project's funders have written down their loans to
the project
Already in November 2021, Germany’s Federal Network Agency (BNetzA) announced
it “provisionally suspended” the certification procedure of the pipeline over legal details. Earlier that
year, Germany and the U.S. had reached an agreement that would have allowed the completion of
the Nord Stream 2 pipeline.

In a joint statement, the countries expressed determination to “hold Russia to account for its
aggression and malign activities by imposing costs via sanctions and other tools.” They also pledged
to invest in Ukraine’s green energy infrastructure with a fund of at least one billion dollars and will
aim to ensure Russian gas flow through Ukraine to continue beyond 2024.
After more than a year of threatening to do so, the U.S. had introduced first sanctions on 19 January
2021, former president Donald Trump’s final full day in office. The administration sanctioned the
Russian ship Fortuna, which later resumed pipe-laying.
The pipeline was originally scheduled for completion by the end of 2019.
The project
Nord Stream 2 is an underwater twin pipeline that would transport natural gas from Russia directly
to Germany. At a length of 1,230 kilometres, it follows the route of the existing Nord Stream twin
pipeline underneath the Baltic Sea.
The original Nord Stream pipeline, with an annual capacity of 55 billion cubic metres (bcm), was
finished in late 2012. The pipeline system’s total capacity is set to double to 110 bcm following Nord
Stream 2’s entering into operation. The pipeline crosses into the exclusive economic zones of five
countries: Russia, Germany, Denmark, Finland, and Sweden.
Nord Stream 2 was built by Nord Stream 2 AG, a consortium incorporated in Switzerland. Its
chairman of the board of directors is Gerhard Schröder, German chancellor from 1998 to 2005 and
the subject of fierce criticism for his ties to Russia.
Nord Stream 2 closely follows the route of the existing Nord Stream twin pipeline underneath the
Baltic Sea. Source: Nord Stream 2 AG.
Moscow-based, state-owned Gazprom is the project’s sole shareholder and has committed to
providing up to 50 percent of the project’s financing, with the remaining funds coming from German

companies Wintershall and Uniper, Royal Dutch Shell, French ENGIE, and Austrian oil and gas
company OMV. According to Nord Stream 2 AG, the overall costs of the project total around 9.5
billion euros.
The gas that the pipeline is to carry lies in northern Russia’s Yamal Peninsula, which holds nearly
5 trillion cubic metres of gas reserves, according to the Nord Stream 2 consortium. Once extracted,
the gas is to be transported to coastal Russia. There, it is to pass through a compressor station – a
facility that raises the pressure of the fuel – and then be fed into the pipeline. After entering into the
Gulf of Finland, the pipeline re-emerges on land in north-eastern Germany, near Greifswald.
Russia, Germany, Finland, Denmark and Sweden granted all the permits necessary for construction
of the planned pipeline within their jurisdictions. Construction of Nord Stream 2 in Germany began
in 2016 with the production of the steel pipes and continued with the digging of a trench on the
seabed in May 2018. In July 2018, the first steel pipes were installed at Germany’s landfall in
Lubmin. The construction was finished in 2021.
Construction works of Nord Stream 2 natural gas pipeline at the landfall in Lubmin, Germany.
Source - Axel Schmidt, Nord Stream 2 2018.
The arguments
The project’s supporters, which include the Russian government, the companies involved,
and some German politicians, argue that the pipeline would both increase security of supply by
connecting western Europe to the world’s biggest gas reserves and support sustainability goals by
replacing coal as a less CO2-intensive complement to renewable energies.
Germany is planning on phasing out its coal use in order to meets its CO2 emissions reduction
targets, which will further strain its electricity grid, Nord Stream 2’s supporters contend. Proponents

of the project also argue that Nord Stream 2 could provide the energy currently supplied by nuclear
power plants, which are planned to be taken offline by 2022.
The United States, environmental groups, many German politicians, and several Eastern European
countries oppose the project. Opponents argue that the pipeline would harm fragile marine
ecosystems, jeopardise the bloc’s move to a low-carbon economy, increase European reliance on
Russia for energy to a dangerous level, and empower Russia at a time that it is facing criticism for
destabilising activities around the globe.
Supply
Proponents of the project maintain that, despite geopolitical concerns, Germany needs to import
more gas and that the new pipeline could bring reliable and affordable supplies to the country. As
the world’s biggest natural gas importer, Germany currently sources nearly all (94% in 2018 ) of the
natural gas it consumes from abroad, according to the Federal Institute for Geosciences and
Resources (BGR).
Domestic natural gas production has been falling since 2004 and will likely cease altogether in the
next decade, and further exploitation of Germany’s natural gas supplies via hydraulic
fracturing remains unlikely.
Due to data privacy regulations, the Federal Office for Economic Affairs and Export Control (BAFA)
stopped publishing import volumes by country in 2016. However, it can be assumed that Russia,
Norway, and the Netherlands continue to be Germany’s main suppliers, according to the BGR. In
July 2018, a spokesperson for the German economy ministry put Russia’s share in German natural
gas imports at “about 40 percent.” This was also the share for EU gas imports as a whole in 2018.
In 2015, 35 percent of German gas imports came from Russia, 34 percent from Norway, and 29
percent from the Netherlands, with the latter’s share due to drop because production in the
Netherlands is being scaled back and potentially phased out by 2030.
Proponents of the pipeline say that decreasing gas production within the European Union means
that more of the fossil fuel will need to be imported in the coming years, much of it from Russia. This
would increase Germany’s importance as a transit country to supplying the rest of the continent.
German gas consumption has been on the rise since 2014, supplied largely by record imports from
Gazprom. [For more on Germany’s dependence on foreign suppliers for natural gas, read our
factsheet.]
However, environmental think tank E3G has found that, even in a scenario in which the German
power sector were to rapidly switch from coal- to gas-generated electricity, Nord Stream 2 would be
unnecessary. As the report notes, “from a security of supply point of view, there is no need for new
import capacity into Germany, like Nord Stream 2.” Instead, the think tank writes, imports via existing
liquefied natural gas (LNG) terminals and pipelines would suffice to meet expected future needs.
Map of the European natural gas pipeline network. Source - DIW 2018, based on Kai-Olaf Lang and
Kirsten Westphal, “Nord Stream 2 – Versuch einer politischen und wirtschaftlichen Einordnung,“
SWP Studie S21 (2016); ENTSO-G, Capacity Map (2017).
Gazprom also constructs TurkStream, a 31.5 bcm twin pipeline at the bottom of the Black Sea, to
supply both Turkey and south-east Europe with Russian natural gas. Commercial supplies via the
first line commenced in early 2020, the second line is under construction.
Further complicating the debate, there is uncertainty regarding how German gas demand will
change in the future. Whereas the BGR writes in a 2017 study that domestic natural gas use will
grow, FNB Gas, the association of Germany’s gas transmission system operators, looks at two

scenarios: one in which demand will grow and one where it falls over the next decade. The Federal
Network Agency (Bundesnetzagentur) bases its plans for the development of the natural gas
transmission network on FNB Gas’s scenario frameworks.
[For more on the role of natural gas in the German energy system, read our dossier.] The German
government makes few statements on expected total future gas demand, but emphasises that the
fuel will play a more important role and that imports will also grow in importance as European
domestic production declines.
Projections for future EU gas demand also vary widely, with some calling into question the need for
additional import capacities. In a 2018 paper, the German Institute for Economic Research (DIW)
wrote that the energy consumption forecasts on which Nord Stream 2 is based “significantly
overestimate natural gas demand in Germany and Europe” and that there will be no supply gap if
the pipeline is not built.
In a 2017 study, energy research and consultancy organisation ewi Energy Research & Scenarios
wrote that Nord Stream 2 would also help bring down gas prices in the EU. “When Nord Stream 2 is
available, Russia can supply more gas to the EU, decreasing the need to import more expensive
LNG. Hence, the import price for the remaining LNG volumes decreases, thereby reducing the
overall EU-28 price level,” wrote ewi.

Environment
Nord Stream 2’s proponents and opponents also disagree over the pipeline’s environmental benefits
and drawbacks. Supporters say that the pipeline could help Germany meet its carbon emissions
reduction goals. [For more on Germany’s greenhouse gas emissions and climate targets, read our
factsheet.]
Nord Stream 2 AG argues that replacing coal with natural gas benefits the climate because, when
burned, natural gas emits less carbon dioxide than coal. However, depending on the volume of
methane that leaks during the gas’s extraction, processing and transportation, precisely how much
more beneficial for the climate natural gas is remains unclear. [For more read the article Unravelling
the climate footprint of U.S. liquefied natural gas]
Even if natural gas were friendlier to the climate than coal, some climate change activists
nevertheless believe that the project should be abandoned. In their view, the combustion of natural
gas contributes to global warming, and the construction of a multibillion-euro pipeline represents an
investment that will “lock” Germany – and the EU – into fossil fuels “for decades.”
“If EU member states are serious about their commitments to tackle climate change, they should
use every tool in the box to stop Nord Stream 2,” Marcin Stoczkiewicz wrote in Climate Home News
in April 2017. Marine conservation groups also oppose the energy project, arguing that laying new
pipelines under the Baltic Sea would lead to detrimental effects on ecosystems. The Nature and
Biodiversity Conservation Union (NABU) had tried unsuccessfully to halt construction before local
courts and the Federal Constitutional Court.
Geopolitics and security
The United States has long been an opponent of the pipeline and already-fraught transatlantic
relations have continued to deteriorate over the project. The administrations of both
Presidents Barack Obama and Donald Trump have clearly expressed their opposition to the
pipeline, and the country introduced sanctions in December 2019, forcing pipelaying vessels by
Swiss company Allseas to stop working on the project and leading to a months-long delay.
As do others, the American government contends that completion of the project would increase
European reliance on Russia and imperil the continent’s security policy at a time when Russia is
facing intense criticism for its alleged interference in Western democracies, aggression in Eastern
Europe, and support of Syrian President Bashar al-Assad.
Secretary of State Pompeo called Nord Stream 2 one of “Russia’s malign influence projects”. In
addition, the US has become a major exporter of LNG it aims to also sell to European customers.
[Also read the article Coronavirus crisis highlights risks of U.S.-European LNG deals diplomacy]
Nord Stream 2 board chairman and former German chancellor “Gerhard Schröder supports Russian
energy exports that in turn finance Russian war exports,” Reinhard Bütikofer, German member of
the European Parliament and Green politician has said, while Norbert Röttgen, German
conservative politician and chairman of the foreign affairs committee, has commented: “In my view,
the federal government’s language regime that, as a private economic project, Nord Stream 2 has
nothing to do with politics is unacceptable and provocative.”
With Russia's war against Ukraine, critics were shown to be right.
For years, the German federal government had said that Nord Stream 2 is a purely economic project
and that the state should not interfere. In April 2018, however, Chancellor Angela
Merkel acknowledged concerns by the Ukrainian government and said the pipeline “is not just an
economic project, but that, of course, political factors must also be taken into account.” Still, the

government has remained in favour of the project until shortly before the war against Ukraine started
in February 2022. As late as December 2021, German chancellor Scholz spoke out against linking
the operating permit for the controversial Russian-German natural gas pipeline Nord Stream 2 to
efforts to de-escalate the Ukraine crisis.
Opponents’ geopolitical argument rests on the premise that because Gazprom is a state-owned
enterprise, purchasing gas from the company funnels money directly to the government that is then
used to commit nefarious activities both domestically and around the world.
Money from gas and oil exports allow “today’s leaders in Moscow [to] do what they like doing most:
enrich themselves; halt reforms; and grow the military, the FSB (Russia’s Federal Security Service)
and the police apparatus,” journalist Gerhard Gnauck wrote in an opinion piece for Welt Online.
Finally, many countries in Eastern Europe, such as Poland, Slovakia, and Ukraine, oppose Nord
Stream 2, partially because of expectations of a loss of transit fees and partially because of fears
that their economic and physical security would be jeopardised were the project to be completed.
The EU Commission has also expressed worries that Nord Stream 2 neither aligns with the energy
and foreign policy interests of many of its member states nor complies with the bloc’s long-term
strategy to achieve an Energy Union. Nord Stream 2 “could impede the development of an open
gas market with price competition and diversified supply to the EU,” the Commission wrote.
Pipe storage near the German port of Mukran. Source - Axel Schmidt, Nord Stream 2 2018.
(Non)alignment with the Energiewende
As the debate over the merits and drawbacks of Nord Stream 2 raged on, Germany continued to
push forward – although not fast enough, in the eyes of some – with its Energiewende project, in
which the country aims to both decarbonise its economy and stop using nuclear energy. To achieve

the country’s goal of becoming climate-neutral by 2045, Europe's biggest economy will have to
virtually phase out all fossil fuel use.
The federal government says that it aims to reduce its dependence on energy imports – for which
increased energy efficiency and renewables expansion make an important contribution – but also
that natural gas will make a “significant contribution to Germany’s energy supply over the coming
decades.”
It points out both that gas is a cleaner alternative to oil and coal and that flexible gas-fired electricity
generation can play an important role in balancing out fluctuating renewables feed-in. [Read more
in the CLEW dossier The role of gas in Germany's energy transition.]
After Russia's invasion of Ukraine in 2022, the government said Germany would phase out fossil
fuel supplies from Russia over the coming months (coal and oil) and years (gas).
When asked in a 2018-parliamentary inquiry by the Green Party about how Nord Stream 2 aligns
with decarbonisation targets, the federal government did not give a concrete reply. It named
Germany’s goals and wrote: “How the profitability of Nord Stream 2 would develop against this
backdrop is first and foremost for the pipeline investors to assess.”
“Germany’s international energy policy will continue to aim to diversify energy suppliers and
transport routes as much as possible,” the government wrote in its 6th energy transition monitoring
report. In the reply to the Greens’ inquiry, the federal government wrote in May 2018 that Nord
Stream 2 “as an additional supply route for natural gas from the Russian Federation contributes to
improving natural gas supply security in the European Union.”
The German government also said that the pipeline is in line with the goals of article 194 of the
Treaty on the Functioning of the European Union, namely ensuring supply security, promoting the
interconnection of energy networks, and ensuring the functioning of the energy market.
Even if the project does eventually benefit Germany economically and in terms of climate protection,
many argue that the country may have to grapple with concomitant damage by alienating many
partners. In the words of Kirsten Westphal, an energy analyst at the German Institute for
International and Security Affairs: “In commercial terms, there is a case to be made for Nord Stream
2. In political terms, however, it is clear that Germany will pay a heavy price.”

NewBase Energy News 19 September 2022 - Issue No. 1550 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

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