Image by Ken Hodge
Russia is getting worried about approaching American energy dominance and President Trump’s effort to promote U.S. energy supplies on global markets. Recent comments by Trump to NATO regarding the Nord Stream II, a project to build another pipeline to bring Russian gas to Western Europe, have roiled the Kremlin, and Merkel for that matter.
The price of the US liquefied natural gas (LNG) for Europe will be 30% higher than Russian fuel at the very least, Russian Permanent Representative to the EU Vladimir Chizhov said in an interview on Monday, reported Russian state news agency TASS.
“The US CAATSA law has a paragraph demanding that the government do everything so that Nord Stream 2 does not happen. Why?” the Russian diplomat asks. “In the next paragraph it states that the US administration must work to broaden exports of US liquefied natural gas to EU countries,” Chizhov notes.
“Is this the unfair competition? Definitely. This is unfair competition with improper means,” the diplomat said. “In any case, even if the US has so much LNG that can be filled to the brim and have as many tankers as streetcars, the price will be at least 30% higher,” the envoy stressed.
There is just one LNG terminal on the east coast of the United States so far, the envoy said. “Yes, six more are under construction but they will not be completed by the end of 2019. Three others are on the west coast but the price will be even higher when shipping from there,” Chizhov explained, wrote TASS.
German Chancellor Angela Merkel has linked progress on completing Nord Stream II to Ukraine continuing to be paid gas transit fees on existing pipelines. Russia recently agreed to renegotiate contracts or keep the current one in place in order to facilitate the new pipelines constructions. Western European governments are heavily invested in Nord Stream II as well.
Hydrocarbon revenue is the life blood for the Russian federal budget.
Trump knows this (but Trump’s a Russian agent right?).