Biden, Merkel fail to resolve differences about Nord Stream 2 gas pipeline
President Joe Biden and German Chancellor Angela Merkel failed on Thursday to settle their dispute over Russia’s Nord Stream 2 natural gas pipeline but said they agreed that Moscow must not be allowed to use energy as a weapon to coerce its neighbors. “Good friends can disagree,” Biden told reporters after two meetings with Merkel at the White House, adding that both leaders had asked their teams to look at practical measures they could take together if Russia’s actions posed a threat. Biden said he expressed his long-standing concerns to Merkel about the $11 billion pipeline, which would deliver gas from the Arctic to Germany via the Baltic Sea, bypassing Ukraine and depriving it of valuable transit fees. Washington is pressing Germany to find ways to ensure that Russia could not use the pipeline to harm Ukraine or other allies in Eastern Europe. Officials from both countries have been negotiating a solution that would stave off the resumption of currently waived U.S. sanctions, but it became clear this week that no deal would be ready in time for the Biden-Merkel meeting. The Biden administration concluded in May that Nord Stream 2 AG, the company behind the project, and its chief executive engaged in sanctionable behavior. But Biden waived the sanctions to allow time to work out a deal and avoid derailing his efforts to repair ties badly frayed during former President Donald Trump’s administration. The pipeline is 98% complete https://www.reuters.com/business/energy/nord-stream-2-ceo-says-construction-work-be-finished-august-2021-07-12 and should be finished in late August, its CEO said this week. Biden told reporters that he and Merkel are “absolutely united in our conviction that Russia must not be allowed to use energy as a weapon to coerce or threaten its neighbors.” Merkel told reporters that Germany, Europe’s biggest economy, has different views on the pipeline from the United States. But she said Ukraine should remain a transit country and Berlin would take “actively” respond if Russia did not respect Ukraine’s sovereign rights. Asked to elaborate, Merkel said the European Union had “a number of instruments” it could use, including sanctions, if Russia violated its commitment to continue to ship natural gas through Ukraine. Russia says the pipeline, led by Russian state energy company Gazprom and its Western partners, will go into operation later this year. Biden said both leaders agreed to continue to support the sovereignty and territorial integrity of Ukraine. The two countries agreed to collaborate to accelerate moves to tackle the climate crisis in emerging economies, pledging to mobilize investment in Central and Eastern Europe. A joint statement singled out investments aimed at supporting Ukraine’s energy transformation, energy efficiency and energy security. The move could factor into an eventual agreement, expected before August, to end the threat of U.S. sanctions over Nord Stream 2.
Oil Minister Puri, Saudi counterpart hold talks on bilateral energy partnership
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Thursday met with Saudi counterpart Abdul Aziz bin Salman Al Saud, and held discussions on strengthening bilateral energy partnership and developments in the global energy markets. Puri, who took charge of India’s oil ministry last week, said Saudi Arabia is a central player in the international energy market. “Had a warm and friendly discussion with His Royal Highness, Prince Abdul Aziz bin Salman Al Saud, Minister of Energy of Saudi Arabia on strengthening bilateral energy partnership and developments in the global energy markets,” Union minister Hardeep Singh tweeted. Puri also conveyed his desire to work with Prince Abdulaziz to bring greater predictability and calm in the global oil markets. “Saudi Arabia is a central player in the international energy market. I conveyed my desire to work with His Royal Highness Prince Abdulaziz to bring greater predictability and calm in the global oil markets, and also to see hydrocarbons become more affordable,” the minister said. He further highlighted the crucial role of Saudi Arabia in the rapidly growing energy needs of India in the coming years. “Highlighted the crucial role of Saudi Arabia in rapidly growing energy needs of India in the coming years, and my strong desire to work with His Royal Highness to further diversify our bilateral strategic energy partnership beyond buyer-seller to see greater two-way investments,” he said in a subsequent tweet.
India’s gasoline sales jump above pre-pandemic levels
Indian state fuel retailers’ gasoline sales exceeded pre-pandemic levels in the first fortnight of July, as motorists took back to the roads after states eased COVID-19-related lockdowns. Sales of gasoline rose to 1.03 million tonnes in the first fortnight of July, a jump of about 3.44% over the corresponding 2019 period, preliminary industry data showed on Friday. India’s gasoline sales recovered to pre-pandemic levels in October 2020 before a second deadly wave of infections began hitting the fuel’s demand in April. Rising fuel sales in India, the world’s third-biggest oil importer and consumer, is a positive development for global oil markets. The Organization of Petroleum Exporting Countries said on Thursday it expects world oil demand to increase next year to around levels seen before the pandemic, led by demand growth in the U.S., China and India. With easing of restrictions by the states after a decline in infections, motorists flocked to tourist destinations and markets, leading Indian Prime Minister Narendra Modi to warn against overcrowding. This week, the home ministry asked officials nationwide to enforce social distancing and clamp down on overcrowding at tourist sites. Gasoline sales, which accounts for about two-fifths of India’s overall refined fuel consumption and is directly linked to industrial activity in Asia’s third-largest economy, was about 10.7% less than the same period of 2019, the data showed. India hopes its fuel demand would recover to pre-pandemic levels by the end of this year. State-run Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90% of the country’s retail fuel outlets.