Gas prices see sudden surge in Europe after Germany suspended Nord Stream 2 gas pipeline

High oil price hikes were recorded again in Europe on Wednesday after Germany suspended the authorization on Nord Stream 2 pipeline from Russia, claiming legal obstacles. The controversial pipeline is linking Russia to Germany under the Baltic Sea.

German government sources said might not now be commissioned until March next year, said sources quoted by Reuters.

That cast a shadow over winter gas supply, increasing fears they will not be enough.

The reference quotations for natural gas for the European market, those from the TTF hub in the Netherlands, rose on Wednesday by almost 8%, to 101.30 euros per MWh, the highest level since October 18.

On the other hand, some analysts said the certification process could drag on for months because Brussels will need to give it the green light once German regulators have made their recommendations.

“The timetable for the pipeline to start deliveries seems longer than we initially expected. It is only possible to operate in February,” said Goldman Sachs analysts.

European governments are trying to alleviate the burden on consumers and businesses through measures such as capping prices and subsidies.

authorizationEuropegasGermanyhikesNord Stram 2oil pricepipelineRussiashortagessuspendedwinter gas supply
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