The Battle of Pipelines: Nord Stream vs. Nabucco
By William Engdahl
On November 7 the first of two pipelines for Nord Stream, the huge Russian-German gas pipeline project, began delivery of gas. The event was no minor affair. German Chancellor Merkel and Russian President Medvedev along with the prime ministers of France and the Netherlands and the EU Energy Commissioner formally opened the first of two 1224-kilometre pipelines at Lubmin in northern Germany, beginning delivery of the first gas direct from Russia’s Yuzhno-Russkoye gas field in Siberia to Germany.
Nord Stream was not cheap. It cost a total of more than $12 billion for the complex 760 mile long undersea pipeline through the Baltic Sea from Vyborg near Russia’s St Petersburg to north eastern Germany. It was laid in remarkable time and with extraordinary environmental precautions to insure protection of sea life, a precondition set by several EU Baltic countries. When the second pipeline is finished in late 2012, Nord Stream will be able to deliver 55 billion cubic meters of Russian gas a year, almost ten percent the entire EU annual gas consumption, or roughly one third the entire current gas consumption of China.
Nord Stream estimates it will provide enough energy to fuel 56 million West European households. With current EU political decisions over reducing CO² “carbon footprint” emissions, the Russian gas giant argues its natural gas gives 50% less CO² than rival coal plants at as much as 50% greater energy efficiency.
Even if Moscow is being more than somewhat opportunist and is not convinced about the shoddy science of global warming, Gazprom does not hesitate to use this as a shrewd political selling point. The EU is going for natural gas energy big time and Moscow intends to be a major, if not the major beneficiary of that push. In addition to delivering Siberian gas to Germany, Nord Stream will deliver to the United Kingdom, Denmark, the Netherlands, Belgium, France and the Czech Republic.
Moscow appears to hold a winning hand in the one important non-military lever it has to tip the global geopolitical balance of power in its direction and away from Washington’s overwhelming dominance. Oil and natural gas are at the heart of the strategy. For some months Russian production of crude oil has surpassed Saudi Arabia’s to be the world’s largest oil producer with over 10.3 million barrels daily, nearly one million barrels more.[1] And in terms of known reserves of natural gas Russia is far away the world leader according to industry data.
Russian natural gas has increasingly been the foundation for a brilliant series of Russian energy geopolitical initiatives for several years. Gazprom, a closely-held state company, is the centerpiece of this energy strategy.
To counter the eastward march of NATO into countries of the former Warsaw Pact such as Poland, the Czech Republic or Romania and the various US attempts to lure Ukraine and Georgia into NATO, Russia’s Vladimir Putin, both as President and more recently as Prime Minister, has used the economic lever of Gazprom. With its enormous gas resources Russia seeks to win stronger economic ties in Western Europe, thereby hopefully neutralizing somewhat the potential military strategic threat from the NATO encirclement. No country has been more the focus of this Russian pipeline diplomacy than former wartime foe Germany where Nord Stream lands. Read more