Nancy Gomez26 said:Nothing about Nord Stream 2 has actually failed. It isn't as if someone physically picked up the pipeline and walked off with it. The gas will eventually flow through those lines with just a slight delay, and by the end of the day, the whole thing will prove to be profitable. Perhaps some investor will swoop in now to scoop up shares from the current owners at a discount. I suspect most of those investors would still be selling their stakes with heavy hearts, simply because the project retains its potential—they just need to wait it out.
It isn't quite that simple, though.
Nord Stream 2 cost 7.4 Billions of euros... and that massive investment needs to pay itself off as soon as possible... especially since we are talking about private capital here.
If you want to see a return on investment quickly, Nord Stream 2 had to start operating immediately... and let's not forget that Nord Stream 2 has a limited lifespan; it wasn't designed to last forever.
Even during construction, Nord Stream 2 was being slowed down, causing completion to lag by two years.
Right now, there aren't even any clear signs of when operations might actually begin... theoretically, anything can happen. It might never go live, or it could take years to get moving... but for now, we are still stuck in the realm of pure speculation.
What we do know are the facts, and none of them favor Nord Stream 2. Germany has decided to scale back its gas imports from Russia, and because of the war in Ukraine, that shift is going to be drastically and irreversibly accelerated.
Furthermore, there will certainly be a push to reduce reliance on fossil fuels in the future, a transition that is also being fast-tracked due to the conflict in Ukraine.
Even if the gas eventually starts flowing, the "cards" are stacked heavily against it in terms of justifying such a massive financial undertaking—especially when you consider the existence of Nord Stream 1 and the much more politically viable pipeline running through Ukraine.
Plenty of analysts are already agreeing that Nord Stream 2 is a financial disaster (since we now know its primary goal was to replace the Ukrainian pipeline, an objective that was already failing before the war even started). Personally, I wouldn't touch the stock of a company tasked with managing this project; I simply don't see a positive financial future for it.
Best regards,