The National Interest advocates “gas geo-economics” to counter Nord Stream 2

The National Interest advocates “gas geo-economics” to counter Nord Stream 2
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By implementing “gas geoeconomics” strategy, Washington will make the gas market of Europe more competitive and at the same time weaken the dominance of any single supplier, including Moscow, The National Interest wrote.

According to the article published on July 31, the United States has few options as the Nord Stream 2 gas pipeline project comes closer to becoming reality. Washington can impose sanctions against European companies supporting the pipeline project, capitulate or find a way to reduce the potential utility of the pipeline as an instrument of Russia's geopolitical influence.

Such a policy can be called “gas geoeconomics”, which will use economic instruments for obtaining positive geopolitical results. In particular, this is about such instruments as crediting and project financing. And while the aim of this strategy is to weaken Russia's dominance in the gas market of Europe, it can be achieved by creating a more competitive and diverse natural gas market in Europe.

To this end, Washington should not be limited to supporting supplies of domestic LNG only. Whether liquefied gas arrives from the coasts of the Gulf of Mexico, Qatar, Norway or even from Russia-based LNG producers — all this helps to diversify the market. The “credible threat” of alternative supplies will reduce the ability of any supplier to dictate terms to European gas consumers.