Gas prices in Europe rose on Wednesday after Germany suspended the approval and launch of the Nord Stream 2 pipeline.
The pipeline faced stiff opposition from the United States and some European states because they believe that its launch will make Europe too dependent on Russia.
But the governments of several other European countries say the new connection is vital to secure energy supplies, as further price increases will trigger further inflation, which is already above target.
Latest forecasts say gas prices in the Netherlands will rise by 8% to € 101.60 next month, after jumping by almost 60% this November. This is still below the peak level of € 155, which was recorded last October 6.
Reports also indicated that the Dutch January gas contract jumped 7.8% to € 101.61, while gas prices in the UK surged almost 12% in the first three months of 2022, to £ 2.45 pound.
Because of the delay, Reuters project that the Nord Stream 2 will be launched around March 2022. Nevertheless, the German Eastern Business Association said it trusts the decision of Germany because it takes careful consideration of the interests of consumers and pipeline operators.
According to some analysts, the certification process could take months, and there is even a possibility that the certification may not be completed until April next year, or be extended until August 2022.
But high energy prices in Europe and around the world are already fueling inflation, which in turn could push central banks to raise interest rates earlier than planned.
Recent data showed that inflation in both the European Union and the UK jumped above 4% in October, more than double the central bank's target.
But Germany argued that they delayed the certification of the Nord Stream 2 because in accordance with the law, it is necessary to create a subsidiary in the country first to obtain an operating license.
Belarus President Alexander Lukashenko also said he may close the pipeline in retaliation for recent EU sanctions