Western Companies Abandon Russia-Led Nord Stream 2 Project

21/01/2021 08:47 Natural Gas

news

The U.S. imposed on Tuesday sanctions on the Russian pipe-laying vessel that was expected to complete the construction of the gas pipeline Nord Stream 2, while several Western companies are said to have abandoned links to the project for fear of sanctions.  

The final stretch of the construction of the controversial pipeline now looks even more uncertain, and even Russian gas giant Gazprom has warned investors that the Nord Stream 2 project could be suspended or entirely discontinued due to extraordinary circumstances, including “political pressure.”

 

The U.S. Department of State slapped sanctions on Tuesday on the Russia-based entity KVT-RUS and identified the pipe-laying vessel FORTUNA it owns as blocked property.  

 

“Nord Stream 2, if completed, would give Russia the means to completely bypass Ukraine, depriving Ukraine of vital revenues and opening it up to further Russian aggressive actions, while providing the means to use natural resources as a tool of political pressure and malign influence against western Europe. Today’s announcement demonstrates that the United States is not afraid to hold accountable those who continue to aid and abet this tool of Russian coercion,” the U.S. Department of State said. 

 

Meanwhile, German engineering and construction giant Bilfinger has informed the U.S. and the Nord Stream AG company behind the pipeline that it would quit the project, becoming the first German firm to withdraw from Nord Stream 2, German tabloid Bild reported on Tuesday, citing letters of Bilfinger it had seen.

 

Bilfinger was contracted to deliver safety and process control systems for the pipeline in an order worth US$18 million (15 million euro), according to Bild.

 

In another company withdrawal, Switzerland-based Zurich Insurance Group has terminated insurance coverage for Nord Stream 2 that was sanctionable under the National Defense Authorization Act for 2021, Zurich Insurance’s spokesperson Thomas Baer told Russian news agency TASS on Tuesday.

 

The widening U.S. sanctions on Nord Stream 2 are a kind of hybrid warfare used by the United States, Vladimir Putin’s Press Secretary Dmitry Peskov said last month. Speaking to reporters on Tuesday, Peskov said that “This international project is still facing crude, illegal pressure from the United States of America,” Russian news agency TASS reported.

 

source:oilprice.com

China ‘installed half of new global offshore wind capacity in 2020’

04/03/2021 08:43:00

China accounted for half of all new global offshore wind capacity in 2020.

<READ MORE

UK to set up green infrastructure bank

04/03/2021 08:15:00

The bank will be able to deploy £12bn of equity and debt capital and issue up to £10bn of guarantees. It should support up to £40bn of total investment, Sunak said.

READ MORE

Daily (03.03.2021): Oil prices tumbled to two-week lows on Tuesday amid expectations that OPEC will boost output

03/03/2021 10:37:00

Crude oil prices remained on the back-foot for the fourth consecutive day on Tuesday amid expectations that OPEC+ producers will ease supply curbs at their meeting later this week as the global oil demand shows signs of recovery from the coronavirus pandemic. Hence, Brent crude dropped by 99 cents, or 1.6%, to settle at $62.70 a barrel, its lowest close since Feb. 12. U.S. WTI crude fell by 89 cents, or 1.5%, to $59.75, its lowest settlement since Feb. 19.

READ MORE