Discussion about this post

User's avatar
Terentev Valerii's avatar

There is just not enough water to cool those NPPs down in Europe...

They should have never been shut down in the first place, but since they have been, building new fission NPP is expensive. Fusion reactors can be reasonable but the tech is not ready.

https://scientifictemper4all.substack.com/p/chernobyl-and-germanys-selfinflicted?r=1npyai&utm_campaign=comment-list-share-cta&utm_medium=web&comments=true&commentId=353001057

Terentev Valerii's avatar

Dr. Rainer Kraft, AfD MP 🇩🇪 explains that Russian gas has never been cheap for Germany and that the Nord Stream project primarily filled the coffers of the Russian gas company Gazprom, and thus indirectly Russia's.

"We could have also bought the gas via the hub at the same price," criticises the AfD MP.

10 Jul 2026 — There never was cheap Russian gas

TL/DR version: Cheap gas from Russia is a myth. Germany always paid world market prices for this gas; in fact, in the early 2010s, it paid higher prices for this pipeline gas than the price of imported LNG at the Dutch TTF gas hub. The decision to pursue the Nord Stream project primarily lined the pockets of Gazprom/Russia; we could have purchased the gas via the hub at the same price.

Long version: Since 2022, there has been a great deal of discussion and writing about gas flowing from Russia to Germany. Yet, actual knowledge on the subject has always been scarce. We were told it was cheap and secured our prosperity (though the same is claimed about diversity). Parliamentary inquiries directed at the government failed to answer the question. The massive surge in gas prices across Europe was cited as evidence that imported LNG was inherently more expensive—implying that higher LNG costs had to be passed on to the consumer, whereas consumers of pipeline gas benefited from lower supply costs.

Neither of these claims is true!

A different picture emerged starting with an article by @Reuters. Reuters points to publications by the Oxford Institute for Energy Studies (OIES; @OxfordEnergy). After studying these publications ("The Pricing of Internationally Traded Gas" (PITG) by Jonathan Stern and "What Drives International Gas Prices in Competitive Markets?" (WDIGP) by Mike Fulwood) and making brief inquiries with the OIES (special thanks here to Jack Sharples), a clear picture—backed by extensive evidence—has emerged: at no point was Russian gas purchased below the world market price. At times—specifically between 2009 and 2015—the price paid for this gas was even higher than that of freely traded LNG at the Dutch TTF hub (compare the RUSGER line with the TTF line; see the chart from WDIGP/Mike Fulwood).

This higher price stemmed from the conventional practice of indexing the gas sales price to a benchmark based on crude oil or a basket of various traded crude oil grades. This pricing method was common practice before being superseded in Europe during the 2010s by market-based hub pricing (cf. Stern, PITG). Although the chart ends in 2015, the picture remains unchanged; between 2015 and 2022, the prices for Russian imports and hub prices were on par.

Mike Fulwood explains that the illusion of "cheap Russian gas" arises from the fact that the costs of supplying the gas to the European market were lower for the seller. The second chart (from WDIGP/Mike Fulwood) provides an estimate of these costs for 2022. Since the sales price was determined either by oil prices or—later—by hub pricing, lower production and supply costs translated into higher profits. Consequently, the low supply costs of Russian pipeline gas did not benefit customers at the German end of the pipeline; instead, the gains went into Gazprom’s coffers and helped fill Russia’s war chest.

The conclusion is clear: Russia was the primary beneficiary of the Nord Stream project. As Mike Fulwood writes: "While Europe, and Germany especially, may have been hooked on Russian gas, given the volume of imports from Russia, it was not cheap."

Finally, a word on the motivation for compiling this information. The AfD accuses other parties—rightly so, in my view—of not inhabiting the same reality as the citizens of Germany. The disregard for the impact that electricity prices, driven up by energy transition measures, have on German industry and businesses is one such example. Those who do not live in the same reality as the voters cannot improve their lives. However, the reverse is also true. Russian gas is not a magic substance that will eliminate Germany’s economic problems. The problems in energy policy are homegrown, and they must be resolved politically in Berlin. Switching gas suppliers will not help, and it would be negligent to tell voters otherwise.

13 more comments...

No posts

Ready for more?