LNG and Nord Stream 2 in the context of uncertain gas import demand from the EU
Georg Zachmann sees the development of import demand for natural gas in the EU as uncertain. In case of strongly increasing import demand, both Nord Stream 2 and liquified natural gas imports could contribute to ensure European supply.
This article was published in ifo SCHNELLDIENST
With falling demand, the EU does not need new import lines. Gas import demand will very much depend on political decisions: many business-as-usual scenarios foresee increasing gas import demand; however, all scenarios that implement the requirements of the Paris Climate Agreement lead to a dramatic drop in the demand for natural gas.
The commissioning of Nord Stream 2 could allow Russia to selectively supply individual member states and potentially empower Gazprom to increase its profits at the expense of ist Eastern European consumers.
Therefore, it would be in the common interest of the EU to find a way to postpone the decision on the construction of Nord Stream 2 until there is more clarity on whether additional imports are really needed.