Nord Stream

Why in the News?

Sweden has found a new leak in undersea Nord Stream gas pipeline, carrying Russian natural gas to the European Union.

Key Points:

About

Nord Stream Pipeline:

• Nord Stream consists of two pipelines, which have two lines each namely: Nord Stream 1 & Nord Stream 2.
• It crosses the Exclusive Economic Zones (EEZs) of Russia, Finland, Sweden, Denmark, and Germany.
• Owned by the Russian energy giant, Gazprom, Nord Stream, is an export gas pipeline that runs under the Baltic Sea carrying gas from Russia to Europe. 
• The gas for Nord Steam comes mainly from the Bovanenkovo oil and gas condensate deposit in Western Siberia. 

Impact of leaks:

• European gas prices immediately spiked after the reports of the leaks emerged.
• As for the environmental impact, methane is a large component of natural gas and is also a potent greenhouse gas.

Nord Stream Pipeline  Importance:

For Europe:

• Europe requires more than 100 billion cubic meters (bcm) of natural gas each year and around 40% of its gas comes from Russia.
  • Reducing dependence on Russian gas is difficult as there are no easy replacements.

For Russia:

• As for Russia, which has the largest natural gas reserves in the world, around 40% of its budget comes from sales of gas and oil.