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Nord Stream 2 – Friend or enemy of energy security in Europe?
Nord Stream 2 is criticised on grounds that it undermines the functioning of the European gas market and makes European gas consumers worse off. Its critics also claim that the project has no economic rationale, would reduce security of supply, weaken European solidarity and the Energy Union, and also destabilise Ukraine. This CEPS Policy Insight, contributed by a Nord Stream 2 AG market expert, attempts to counter these criticisms by presenting recent economic analysis bearing on these matters. It explains how Nord Stream 2 cannot undermine the European gas market because of the rules already in place. It concludes that the project will be beneficial to European gas consumers by strengthening gas-to-gas competition between piped gas and LNG for supply to the EU. It also finds that fears that Nord Stream 2 will further destabilise Ukraine are exaggerated and sees a continued role of the country in gas transit to the EU.
Alex Barnes is Government Relations Advisor at Nord Stream 2 AG. Unless otherwise indicated, the views expressed are attributable only to the author in a personal capacity and not to any institution with which he is associated.