To increase the share of gas in its energy mix, India has diplomatic options

Published Date : 07-10-2021

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Publisher : SURGE PHARMACEUTICALS

Views : 610

SURGE PHARMACEUTICALS

One of the last major political acts of German chancellor Angela Merkel before the end of her tenure was the decision to go ahead with the Nordstream II project. This will bring an additional 55 billion cubic metres (BCM) per annum of Russian gas to Germany through a pipeline under the Baltic Sea, and double the volume of gas Germany currently receives from Russia. She allowed neither American pressure nor Ukraine’s objection to override German interest in energy security.

After her meeting with United States (US) President Biden on July 21, Merkel said, about Nordstream II, “We have come to different assessments”. She visited Ukraine to mollify the authorities. Ukraine, however, feels that the project will undermine the existing pipeline from Russia to Europe, which goes through the country.

Gas is a bridging fuel for the transition to a low-carbon economy, as it is less polluting than coal. Most Western economies have retained gas as a substantial part of their energy basket. It accounts for 34% of the US’s primary energy consumption, 38% of the United Kingdom (UK)’s, and 25% of Germany’s. Germany also has the option of buying American liquefied natural gas (LNG), which Donald Trump was pushing for. But it preferred the pipeline option to meet the bulk of its needs since piped gas is cheaper than LNG for distances up to 2,000 km.

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