Nord Stream-2 Pipeline Will 'Guarantee Europe's Energy Security'

Germany is not ready to sign an agreement on the Nord Stream-2 gas pipeline from Russia. However, the capacities of the Ukrainian transportation system may not be sufficient, thus, Europe needs alternative gas routes, such as Nord Stream and Nord Stream-2, Mario Mehren, Chairman of the German energy firm Wintershall, said.

Since it was announced, Nord Stream-2 has faced opposition from many European and United States officials who have labelled the pipeline as "controversial."

The project presumes building two pipeline strings, with a total capacity of 55 billion cubic meters of gas a year, from Russia to Germany under the Baltic Sea.

An agreement on Nord Stream-2, involving the expansion of the Nord Stream gas pipeline, was signed in early-September 2014, during the Eastern Economic Forum in Russia’s Vladivostok. The new consortium was established by Gazprom, E.ON, Shell, BASF/Wintershall, OMV and Engie. Gazprom holds 50 percent of shares while the others own 10 percent each.

Last December, Gazprom said Nord Stream-2 is expected for launch in the fourth quarter of 2019.

One of the main goals of the planned pipeline is to cut reliance on Ukraine in delivering Russian gas to Europe.

Recently, the German government said that Nord Stream-2 should not threaten gas transit via Ukraine and gas supplies from Turkey.

"Nord Stream-2 is a project that will maintain energy security not only in Germany but in the entire Europe. It will provide direct and cheap supplies of Russian natural gas to Europe," Mehren said in an interview with Russian online publication Gazeta.ru.

"As for Ukrainian transit, I think this issue is not directly connected with Nord Stream-2. Gazprom can choose whether to use or not to use the Ukrainian transit system. However, gas consumption in Europe will further increase," he added.

At the same time, Mehren noted that the Ukrainian has transit system is exhausted and has not been modernized for a long time.

"Thus, it is crucial to have alternative routes. And they are Nord Stream and Nord Stream-2," he said.

Moreover, the businessmen stressed that the project will be beneficial for European consumers for several reasons.

"First of all, Nord Stream-2 is a direct transit route from Russia to Europe. It’s reliable and the most economically efficient way for Russian gas to Europe. It’s also optimal in terms of the environment," he explained.

Mehren also said he is surprised with the political opposition Nord Stream-2 has faced from such countries as Poland and from the European Commission.

"Politicians should be less emotional about the initiative because first of all Nord Stream-2 would give additional guarantees for Europe’s energy security," he said.

Mehren also touched upon cooperation between German and Russian energy companies amid sanctions and tensions between Russia and the West.

"For example, Wintershall has a number projects in Russia, with annual investments of hundreds of millions euros. We will continue to invest in those projects but we’re also considering some new initiatives," Mehren said.

However he added that due to Western sanctions some joint between Wintershall and Gazprom have been blocked, including projects in the Arctic Region and offshore exploration.

At the same time, sanctions have no effect on cooperation with Russian companies, particularly in research and technological fields, Mehren said.