The Countdown Nigeria (Business) The ongoing pipe break at Nord stream which heads from Russia to Europe has been a massive torture as Europe has not experienced such vulnerability in the energy sector for decades, Reports says.
According to CNN report “It’s a scary situation. They are basically hoping and praying for a mild winter,” Chatterjee, a former commissioner and chairman of the Federal Energy Regulatory Commission, said in a phone interview. “That’s a risky, risky place to be.”
US and Western officials have said the undefined leakage in Nord Stream 1 and Nord Stream 2 bear the hallmark of sabotage. Neither pipeline was currently in operation, but the incident raises further questions about Europe’s supply of energy.
“These leaks kill whatever hope there was that this pipeline could help get them through this winter. This is not an escape hatch for our European allies,” said Chatterjee, who is now a senior advisor at the law firm Hogan Lovells. “This will be a problem for several winters ahead.”
European natural gas futures spiked this week on the pipeline explosion, though they have since pulled back from their highs. Still, energy prices have reached crushing levels that risk driving the European economy into a recession.
In recent years, Europe has shut down coal-fired power plants and nuclear plants as well, leaving it more dependent on natural gas from Russia.
But after Russia invaded Ukraine, European officials canceled plans for Nord Stream 2, a pipeline that was set to deliver vast amounts of gas to Western Europe. And then this summer, Russia cuts off gas flow through Nord Stream 1, apparently in retaliation for tough Western sanctions.
Chatterjee declined to say who might be behind the pipeline explosions nor what their motivations are, though he conceded it’s “very clear” Russian President Vladimir Putin has been “weaponizing gas.”
“This is yet another example of why it’s so dangerous to not only be tethered to a potential adversary but to have limited optionality,” he said.
Russia has denied striking the pipelines, calling the accusation “predictably stupid and absurd.” The state capital of Russia, Moscow has been reported to launch its own investigation.