A roundup of news and commentary from NGI’s LNG Insight 

  • Nord Stream 2 (NS2) has established a subsidiary to operate a portion of the pipeline in Germany. The 5.3 Bcf/d system is ready to move natural gas from Russia to Germany, but it still needs regulatory approval. 
  • NS2 needs to comply with European Union rules that require ownership of transmission assets and natural gas supplies to be separate. The system is owned by vertically integrated Gazprom PJSC. German regulators said certification would be delayed until assets have been transferred. 
  • Researchers at Goldman Sachs Commodities Research said Thursday creating the subsidiary “increases the likelihood that NS2 can initiate operations this summer.”
  • The pipeline is considered crucial to bringing more gas to Europe, where inventories remain below averages for this time of year. Geopolitical tensions between Russia and Ukraine, uncertainty over NS2’s start-up and a jump in Asian spot buying amid cold weather have left gas prices swinging up and down in Europe in recent days.