Bill to sanction Russia-Germany gas pipeline by U.S. Senator
WASHINGTON, (Reuters) - A day after President Trump said that he was considering sanctions to dissuade Russia-Germany gas pipeline, U.S. Senator John Barrasso introduced a bill to slap sanctions on individuals and companies developing Russia's Nord Stream 2 natural gas pipeline project.
Barrasso's Energy Security Cooperation with Allied Partners in Europe bill, or ESCAPE, authorizes mandatory U.S. sanctions on anyone who invests at least $1 million, or $5 million over 12 months, or engages in trade valued at an equivalent amount for the construction of Nord Stream 2 and other Russian energy export pipelines.
Russian state gas producer Gazprom is leading the project, which runs under the Baltic Sea and will double the capacity of the existing Nord Stream system. Half of the funding for the project is provided by Germany's Uniper and BASF's Wintershall unit, Anglo-Dutch firm Shell , Austria's <OMV OMVV.VI> and France's Engie.
The Trump administration says Russia would use the pipeline as a political weapon, increase Moscow's economic grip on Europe and deprive Ukraine gas transit fees important to its economy.
Trump said Nord Stream 2 "really makes Germany a hostage of Russia if things ever happen that were bad." His administration has promoted shipments of U.S. liquefied natural gas (LNG) to Europe to help it diversify away from pipelined gas from Russia, but LNG is more expensive.
Russia and Germany have said the pipeline is a commercial project.
The ESCAPE bill, co-sponsored by several other Republican senators, is one of several in the U.S. Congress reflecting continued U.S. concerns over Russian influence in Europe, but the measure is many steps from becoming law. It would need to pass both the Senate and House of Representatives and be signed by Trump to take effect. Barrasso had introduced a version of the bill last year.
Republican senators including Barrasso introduced a different bill in May that authorizes sanctions against ships constructing deep sea pipelines for Russian energy export projects.
Barrasso, from gas-producing Wyoming, said the United States is blessed with energy abundance. "It only makes sense that we would use these resources to help our allies and loosen (Russian President Vladimir) Putin’s economic and political grip on the region," he said in a statement.
The continued expansion of natural gas trade is led primarily by growth in the LNG sector, which has tripled over the past 3 yr.
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GasPro 2.0: A Webcast Symposium
Following on the heels of the highly successful GasPro 2.0 Webcast Symposium in October 2018, the second GasPro Webcast Symposium 2.0 will take place on October 24, 2019.
The 2019 web event will gather experts in the fields of LNG, gas processing, and gas transport/distribution to share their operations expertise, engineering and design solutions, and technology advances and trends with our audience.
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October 24, 2019 08:30 AM CDT