Nord Stream 2 operator denies reports of bankruptcy filing

Following reports that Nord Stream 2 AG has filed for bankruptcy, the Swiss-based company and Russian gas pipeline operator have said so “cannot confirm” such reports.

Earlier this week, it was widely reported that the builder of the namesake Germany-Russia gas pipeline was considering filing for insolvency following US sanctions over Russia’s attack on Ukraine.

“We cannot confirm media reports that Nord Stream 2 has filed for Chapter 7 Bankruptcy. The company only informed local authorities that it had to terminate contracts with employees following recent geopolitical developments that led to the imposition of US sanctions against the company.Nord Stream 2 said on its website on Friday.

The company’s website is also down “due to serious and continuous attacks from outside” with its mobile and fixed network lines also inaccessible.

Construction of the controversial 1,230-kilometre pipeline, which has been the subject of constant political turmoil, was completed last year, but the project has not started commercial operations as it was awaiting certification in Germany. The process has been put on hold due to the escalating crisis.

Following Russia’s attack on Ukraine and related sanctions against Russian-linked businesses, German company Wintershall Dea announced this week its decision to cancel its funding for the Nord Stream 2 project, a total amount of approximately 1 billion euros.

The German company was involved in the project alongside fellow countryman Uniper, British oil and gas major Shell, Austrian OMV, French Engie and Russia’s Gazprom, which financed half of the $11 billion project.

On February 28, Shell announced its intention to end its involvement in Nord Stream 2 while OMV announced its intention to review its involvement in the project.

European governments are also looking for ways to end their dependence on Russian natural gas and the need to reduce it by turning to other suppliers, including via LNG, and to continue to pursue a well-managed acceleration of energy transitions. clean.

In this sense, Germany has revealed its intention to build two LNG terminals soon, which should be located in Brunsbüttel and Wilhelmshaven.

German Chancellor Olaf Scholz announced the plan during a special session of the Bundestag on February 27, 2022 on Russia’s attack on Ukraine, stressing that the country will increase the amount of natural gas stored via long-term options to two billion meters cubes.

As the crisis continues to deepen, energy majors are abandoning their Russian operations and projects, including BP, Equinor, TotalEnergies, Shell and ExxonMobil.

Meanwhile, oil prices peaked at $113 a barrel and fell to $111 on Wednesday March 3 amid growing fears over the impact of the Russian attack on Ukraine and the outcome of the related sanctions on supply despite IEA members’ pledge to release millions of barrels from emergency reserves.

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