KazPost

Kazakhstan News
Saturday, Apr 27, 2024

'Everything is pointing to Russia': U.S., EU officials on edge over pipeline explosions

'Everything is pointing to Russia': U.S., EU officials on edge over pipeline explosions

U.S. officials downplayed the potential for immediate impacts from the leaks hobbling the two Nord Stream natural gas lines. But the incidents are adding to worries about winter.

U.S. and European officials are increasingly pointing toward sabotage as the cause of two explosions that caused massive leaks from natural gas pipelines out of Russia — and gauging whether the incidents are a new warning from Moscow about the continent’s energy supplies heading into winter.

U.S. officials downplayed the potential for immediate impacts from the explosions in the Baltic Sea, even as gas prices rose in Europe and leaders there asked whether attacks on other critical fuel infrastructure could be coming. The leaks hit the Nord Stream I pipeline, which has been shut down completely since early September, and its planned twin Nord Stream II, which never went into service amid worries that it would worsen Europe’s dependence on Russian natural gas.

“Everybody should be on high alert,” Energy Secretary Jennifer Granholm said Wednesday while attending a conference in Vienna, Austria, according to Bloomberg. Asked whether that alert should include additional precautions for U.S. natural gas shipments to Europe, she said: “Of course.”

In a statement Wednesday, the Council of the European Union promised a “robust and united response” to the incidents, adding that “all available information indicates those leaks are the result of a deliberate act.”

The EU statement did not name a suspected culprit, but some others in Europe were less reticent in blaming Russia as the most likely cause of the pipeline ruptures, which created a massive methane leak under the Baltic Sea after being detected Monday.

“An unnoticed, conspiratorial damage to pipelines at a depth of 80 meters in the Baltic Sea requires sophisticated technical and organizational capabilities that clearly point to a state actor,” Gerhard Schindler, former president of the German Federal Intelligence Service, told the German media outlet Welt. “Only Russia can really be considered for this, especially since it stands to gain the most from this act of sabotage.”

Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskyy, has called the incidents “a terrorist attack planned by Russia.”

Other government officials and analysts said that while the investigation into the leaks continues, a major focus has to be the safety of other critical energy infrastructure in both the U.S. and Europe.

“Everyone is assessing the situation and taking it from the angle of, ‘If Russia was behind this, why?’” Olga Khakova, deputy director for European energy security at the Atlantic Council, said in an interview. She added: “Is this a threat to other infrastructure in Europe?’ And then, ‘What’s next?’”



The U.S. and Europe must continue coordination and ready sanctions against Russia in case it is found responsible, she said. The threat of a cyberattack on U.S. and European infrastructure that could disrupt water flows and treatment, gas delivery and electricity remains high, she said.

“We still don’t know 100 percent that Russia was responsible,” Khakova said. “But everything is pointing to Russia being behind this.”

Asked for comment Wednesday, the White House National Security Council pointed to a tweet from national security adviser Jake Sullivan, who said Tuesday that the U.S. “is supporting efforts to investigate and we will continue our work to safeguard Europe’s energy security.”



During a Tuesday news briefing, Secretary of State Antony Blinken downplayed the incident’s impacts on European energy supply. U.S. energy companies are shipping liquefied natural gas to Europe as part of an effort to make up for supply disruptions caused by Russia’s war on Ukraine, though that effort is hampered by limited capacity, and the U.S. is working with allies to ensure as much spare LNG as possible is heading to European shores.

“My understanding is the leaks will not have a significant impact on Europe’s energy resilience,” Blinken said. “We’re working to continue to surge LNG supplies to Europe in cooperation with global partners, including in the Indo-Pacific.”

Some energy security veterans said the motives behind the leaks are not hard to discern.

David Goldwyn, who ran the State Department’s energy program under former President Barack Obama, said it was “unequivocal” that Russia was behind the attack, noting it executed something similar on a gas pipeline in Turkmenistan in 2009.

Russia’s message is clear, Goldwyn added: “Prepare for a life without Russian gas. ... It’s a threat of a complete cut-off.”

The leak “definitely is putting additional things on the table” for an EU energy ministers’ summit scheduled for Friday, an EU official said, requesting anonymity to discuss sensitive information on the continent’s energy strategy.

The official said the EU already has significantly curbed its use of Russian gas, which has dropped to 9 percent of the bloc’s imports, down from 40 percent before the war. The EU has surpassed its gas storage goals for the winter, shifted energy consumption to off-peak hours and is regularly engaging gas suppliers.



That said, the official acknowledged, the leak has caused everyone to wonder “how low can we go in order to survive the winter?” And, the person said, the continent is weighing strategies for “the long game” on living without Russian gas.

“In a moment of crisis there already has been some very, very important pivoting from all corners,” the official said. “This is going to add another layer of resolution behind all of the actions that are already happening.”

What the disabling of the pipelines will mean for markets is still up in the air. The explosions bring the pipelines out of commission for the foreseeable future, removing what had been a potential source of natural gas into Europe upon its eventual restart. That makes it much more unlikely that global natural gas prices fall anytime soon, market analysts said.

European natural gas prices had fallen to almost $50 per million British thermal units earlier in the week, according to European analyst firm Rystad Energy — substantially lower than they had been in recent weeks but still eight times the price in the United States. But they have since started increasing again on the news of the damage to the Nord Stream pipelines.

“We cannot expect prices to drop any time soon — at least not until we see some form of improvement in supply,” Rystad vice president Emily McClain said in an analyst’s note.

Benchmark U.S. natural gas prices were up 3 percent as of Wednesday afternoon, though they are still down from last week amid worries about a slowing economy.

U.S. liquefied natural gas exporters are sending 60 percent of their cargoes into Europe to offset the loss of Russian gas to Germany and other countries. But export plants are already running as fast as they can, and Freeport LNG, one of the largest suppliers of natural gas into Europe, remains offline until at least November after suffering an explosion earlier this year.

With one less pipeline available to bring natural gas to western Europe, the region will depend even more on imported gas and cause prices for that commodity to rise, said Charlie Riedl, head of the trade association Center for Liquefied Natural Gas.

“It will clearly impact prices in Europe and further increase the global price of gas,” Riedl said in a text message. Trading companies “will likely flow all cargoes to Europe given the price.”

Newsletter

Related Articles

KazPost
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Corruption in the European Parliament - Business as usual
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
Paris Suburb Grapples with Violence as Curfew Imposed: Saint-Denis Residents Express Dismay and Anger
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
×