Russia: Nord Stream 2 could cool gas prices in Europe

Russian Deputy Prime Minister Alexander Novak said on Wednesday that certification of the Nord Stream 2 undersea gas pipeline could soften the crisis due to hiking European gas prices.

Prices have spiked in response to a recovery in demand, particularly from Asia, when storage levels are low.

European Dutch wholesale gas for November delivery has jumped almost eightfold since the start of the year and reached an all-time high of over 150 euros per megawatt hour in the early hours of Wednesday. It reversed gains and fell to 114 euros by 1500 GMT.

Nord Stream 2, which runs on the bed of the Baltic Sea from Russia to Germany, is expecting certification from Germany, which could take a few months. The pipeline has faced resistance from the United States, which says the project will increase Europe’s reliance on Russian energy.