Nord Stream: Court allows a restart – hope for gas deliveries!

Nord Stream: Court allows a restart – hope for gas deliveries!

The operating company of the Nord Stream pipeline has averted the threat of insolvency. A decisive ruling by the cantonal court in Zug allows the company to continue to operate. If the company had gone bankrupt, it would have meant losing the operating license for the pipeline. The possibility of repairs and recommissioning of the pipeline is now theoretically possible, which could have a potential impact on gas supplies from Russia.

Loud Focus A US investor, Stephen P. Lynch, has expressed interest, which makes a restart of gas supplies to Germany and Europe theoretically possible. Before the Ukraine conflict, significant amounts of Russian gas flowed to Germany through the Nord Stream pipeline, but this flow was noticeably restricted due to the war. In particular, three of the four tubes were destroyed in an act of sabotage in September 2022, while those responsible for this incident remain unclear to this day.

Financial situation of the operating company

In order to stabilize its financial situation, the operating company has concluded a debt restructuring agreement with major creditors, including the nationalized German energy supplier Uniper. Uniper is 99.12 percent owned by the Federal Republic of Germany. As part of this contract, small creditors such as pipe layers are also compensated.

The corporate crisis is further burdened by the situation at Nord Stream 2 AG. This faces an ultimatum and must pay out small creditors by a certain date in order to avoid bankruptcy. The company is in probate proceedings and has outstanding bills related to the construction of the pipeline, further complicating the difficulty of maintaining its livelihood. Media reports indicate that the first payments have already been made by the administrator Transliq.

Future gas supplies and market changes

The situation regarding gas deliveries from Russia remains tense. Despite the uncertainties, gas imports from Russia increased by 18 percent in 2024 compared to the previous year. Italy, the Czech Republic and France are increasingly purchasing gas from Russian sources. This will put a certain amount of pressure on Europe's existing supply contracts and future gas strategies. Many European countries plan to become independent of Russian gas by 2027.

The impact of the Ukrainian War led to a significant decline in the share of Russian natural gas in European gas imports. Before the war, Russia supplied up to 45 percent, while currently this share is 19 percent. Gas deliveries through Ukraine were halted in early 2025, costing Russia an estimated $6 billion a year in revenue and leaving Ukraine missing out on around $1 billion in transit fees.

Overall, the future of the Nord Stream pipelines and the associated companies in the canton of Zug remains uncertain given these challenges. Economics Minister Katherina Reiche is committed to increasing the use of gas and is also calling for the construction of new gas power plants. Your measures could be crucial for the future energy supply in Germany and Europe.