[Global Issue+] The German-Russian Gas Pipeline Emerging Behind the Withdrawal of US Forces from Germany
US Firmly Opposes Nord Stream 2... "Gas Pipeline Threatens Europe"
Justifications Include Risks to European Energy Security and Reduced Ukrainian Imports
Texas Gas Exports to Europe Increase After Nord Stream 2 Construction Delays
[Asia Economy Reporter Hyunwoo Lee] The U.S. Department of Defense officially announced the withdrawal of 12,000 troops, equivalent to 30% of the U.S. forces stationed in Germany, drawing attention not only to diplomatic friction between the U.S. and Germany but also to the military balance between Russia and the West within Europe. The U.S. government cites the Nord Stream 2 gas pipeline project between Germany and Russia as a major reason for this troop withdrawal. The U.S. is shifting responsibility onto Germany, claiming that Germany continues with a project that the U.S. has deemed a security risk.
According to foreign media including The Washington Post (WP) on the 1st (local time), U.S. Secretary of State Mike Pompeo stated at a U.S. Senate hearing on the 30th of last month, "We will do everything to ensure that the gas pipeline (Nord Stream 2) does not threaten all of Europe," and added, "We hope Europe will find a practical and secure energy source rather than a pipeline that Russia can shut off at will." The U.S. has persistently opposed the gas pipeline connection project between Germany and Russia.
The controversial Nord Stream 2 project involves connecting a direct gas pipeline from mainland Russia through the Baltic Sea to mainland Germany. Currently, over 90% of the pipeline is completed. Originally, the pipeline should have been completed already, but construction has been delayed by about 12 months due to U.S. sanctions. Germany has protested, calling the U.S. interference in its internal affairs excessive, but the U.S. government has countered by accusing Germany of aiding an adversary. President Trump recently criticized the Nord Stream 2 project directly on Twitter, saying, "We send troops to Germany to protect them from Russia, but Germany builds a pipeline to import gas from Russia. What kind of action is this?"
On the 29th of last month (local time), U.S. President Donald Trump visited the Double Eagle Energy well in Midland, Texas.
[Image source=AP Yonhap News]
As tensions with Russia escalate, the U.S. government is preparing to sanction not only the project but also all individuals involved. This means German officials could also face U.S. sanctions, which has caused strong backlash in Germany. Despite this, the U.S. opposition is justified by concerns that Europe's energy dependence on Russia will increase and that Ukraine, a U.S. ally opposing Russia, will lose billions of dollars in gas transit fees through Germany.
However, Russia and Germany do not view the U.S. opposition as purely motivated by alliance concerns. They believe the U.S. is deliberately blocking the Nord Stream 2 project to export its own natural gas to Europe. Indeed, while the Nord Stream 2 project faced opposition and the European Union (EU) maintained sanctions against Russia following the 2014 annexation of Crimea, U.S. natural gas exports to Europe increased.
According to CNBC and others, in the first quarter, U.S. liquefied natural gas (LNG) exports to Europe reached about 11 million tons, a 14% increase compared to the end of last year. The COVID-19 pandemic caused LNG prices to drop significantly, and heightened caution toward Russia led European countries to increase imports from the U.S. Particularly, Texas, a major natural gas production area in the U.S., was able to dispose of large inventories accumulated after the COVID-19 outbreak, easing its situation.
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Texas is known as a stronghold of the U.S. Republican Party. With the November presidential election approaching, President Donald Trump cannot afford to neglect this region. However, after the COVID-19 pandemic, Trump has been losing ground even in key strongholds. For him, the issue of natural gas exports from Texas, which has the third-largest number of electoral votes (38), may be more important than diplomacy with Germany. This is believed to be the main reason behind the U.S. opposition to the Nord Stream 2 gas pipeline.
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