U.S. President Donald Trump's new powers to put sanctions on companies involved in Russian energy export pipelines could have major consequences for projects like the 55 Bcm/year Nord Stream 2 natural gas pipeline to Germany. Even just the threat of sanctions could be enough to raise costs, cause delays or even halt a project, depending on how the companies involved react.
With Europe buying around a third of its gas by pipeline from Russia, any sanctions could be hugely significant for the wider European gas markets. Europe has courted the US as a potential new supply source of LNG, but it will fight any direct U.S. interference in access to Russian gas supplies.
S&P Global Platts editors discuss how this U.S. policy is changing the risk profile for European energy companies.