Poland Sees Gas Market Risk Amid Russia Pipeline Dispute
(Bloomberg) --
Natural gas prices in Europe could remain volatile for months, with Russia limiting supplies as it seeks approval for a controversial new pipeline to the region, according to Poland's new climate minister, Anna Moskwa.
Russian gas giant Gazprom PJSC is awaiting European regulators to sign off on the Nord Stream 2 pipeline, which would provide fuel to the continent via Germany. The process could take months and is complicated by the possibility of U.S. sanctions.
“Until the issue of Nord Stream 2 is finalized, we cannot be sure of Gazprom's behavior,” Moskwa said in an interview in Brussels. “We're convinced this is a mechanism linked to the certification process. And the certification process will still take some time.”
While the government in Warsaw isn't concerned about the possibility of blackouts this winter, Europe remains in the midst of a supply crunch with gas inventories unusually low. Benchmark prices on the continent have more than quadrupled this year as higher demand has coincided with limited shipments. The region is also competing with Asia for liquefied natural gas cargoes.
What Nord Stream 2 Needs Before Gas Can Start Flowing: QuickTake
Gazprom has repeatedly said it continues to meet all contractual obligations. The Russian producer declined to pre-book any capacity via Poland to Germany in December -- opting instead to rely on daily auctions -- though there are signs that Russia will maintain stable westward shipments for the time being.
“Gazprom doesn't really need to halt supplies to cause a crisis,” Moskwa said. “It's enough to limit flows and provide gas in an uncontrollable manner, not in line with our demand.”
She said the European Commission should investigate Gazprom's activity for a possible breach of EU competition rules, echoing calls from lawmakers in the EU Parliament in September.
Carbon Prices
The Polish climate minister also called for a “broad reform” of the EU Emissions Trading System, which imposes pollution caps on around 12,000 manufacturers, power producers and airlines. Carbon prices in the cap-and-trade program on Friday surged above 80 euros a ton for the first time, gaining more than 140% so far this year.
Moskwa linked the spike to a rising share of financial investors in the market and said the EU should introduce measures to curb speculation. She criticized a report last month by the European Securities and Markets Authority on trading behaviors in the carbon market, saying it amounted to a description of the situation without diagnosing its causes. Poland will raise the issue at the next meeting of EU heads of government on Dec. 16 in Brussels.
Read More: Fund Manager Lekander Sees EU Carbon Above 100 Euros This Year
“The current level of prices will not incentivize faster cuts by the industry or accelerate the green transformation, it will just make it more costly,” Moskwa said. “It seems the system reached such a level that it needs additional control mechanisms.”
©2021 Bloomberg L.P.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
