EU demand for Russian gas to keep Ukraine needed after Nord Stream 2
Rising EU demand for Russian natural gas is making a case for keeping the Ukrainian transit route open even after Russia’s controversial 55 Bcm/year Nord Stream 2 pipeline to Germany comes online. Russia wants Nord Stream 2 flowing gas by the end of 2019, when its transit contract with Ukraine expires. But Nord Stream 2 is facing multiple challenges which could cause delays, including regulatory uncertainties under EU law, a US sanctions risk that could deter investors, and planning issues that could force route changes.
Meanwhile, Russian gas flows via Ukraine reached a six-year high in 2017, and Russia could have to cap exports to Europe after 2019 if it dropped the Ukrainian route entirely. S&P Global Platts editors Siobhan Hall and Stuart Elliott discuss EU gas demand, transit capacities and regulation, as well as the outlook for EU, Russian and Ukrainian gas relations.
Read our report which explores the emergence of LNG, and how it is changing the trading landscape.