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Nord Stream |
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The project execution will ensure sustainability and energy security in Europe |
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The environmental impact assessment is carried out before construction starts |
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The Baltic Sea ecosystem won’t be disrupted
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Significance
The Nord Stream gas pipeline (Nord Stream) is a fundamentally new route for Russian gas exports to Europe. The target markets for gas supply via Nord Stream are Germany, the UK, the Netherlands, France, Denmark and other countries.
The new gas pipeline is very important in terms of meeting the increasing natural gas demand in the European gas market. Gas imports to the EU countries are anticipated to grow in the nearest decade by nearly 200 bcm, or more than 50 per cent. Due to a direct connection between the world’s largest gas reserves located in Russia and the European gas transmission system, Nord Stream will be able to satisfy circa 25 per cent of the foregoing extra demand for imported gas.
In this regard, back in December 2000 the European Commission had assigned the Nord Stream project the Trans-European Network (TEN) status, which was confirmed once again in 2006. This means that Nord Stream represents a key project aimed at creating crucial cross-border transport capacities with a view to ensuring sustainability and energy security in Europe.
Risk Reduction
There are no transit countries on Nord Stream’s route, which enables to reduce Russian gas transmission costs and exclude any possible political risks. Nord Stream will provide the most reliable gas deliveries to customers in Western Europe.
Route
Nord Stream will link Russia’s Baltic coast near Vyborg with Germany’s Baltic coast in the vicinity of Greifswald. The pipeline length will average 1,200 km. Planned for commissioning in 2010, Nord Stream’s 1st line will have a throughput capacity of 27.5 bcm per year. The 2nd line construction by 2012 is projected to double Nord Stream’s throughput capacity to 55 bcm.
Based on the multiyear comprehensive analysis of technical, environmental and economic aspects and factors of the European energy supply security, the sea route is an optimal solution for the construction of a new pipeline carrying gas to Europe.
The pipeline route is projected, as far as possible, in form of a straight line and adjusted with regard of certain areas such as environmentally sensitive areas, chemical weapons dump sites, military zones, critical navigation routes and other dedicated areas serving business or recreational purposes. Nord Stream’s route is designed so as not to cross the World War II ammunition dump sites. The Baltic Sea territory along the pipeline route will be examined in detail before the pipe laying starts.
Environmental Compliance
Nord Stream is a transnational project and its construction is regulated by the international conventions and national legislation of each state, which territorial waters and/or exclusive economic zone the pipeline will cross.
Construction work will be preceded by a detailed environmental impact assessment. Nord Stream will be built in compliance with the most rigid environmental standards and without the Baltic Sea ecosystem disruption.
Resource Base
The Shtokman gas and condensate field will be a resource base for gas deliveries via Nord Stream.
Partners
The Nord Stream project is implemented by Nord Stream AG, a joint venture set up for the planning, construction and follow-up operation of the offshore pipeline.
On September 8, 2005, Gazprom and German companies, BASF AG and E.ON AG, entered in Berlin into an in-principle Agreement to construct the Nord Stream gas pipeline. Under the Agreement, the partners set up a joint venture Nord Stream AG, which is 51 per cent owned by Gazprom and 24.5 per cent owned by Wintershall Holding (BASF AG subsidiary) and E.ON Ruhrgas (Ruhrgas AG before July 1, 2004; starting from February 2003 is part of E.ON) each.
On November 6, 2007, Gazprom and N.V. Nederlandse Gasunie signed an Umbrella Agreement providing for the Dutch company to receive a 9 per cent stake in Nord Stream AG through the reduction of the German companies’ stakes by 4.5 per cent.
Upon execution of the deal the shareholding structure in Nord Stream AG will be as follows: Gazprom (51 per cent), Wintershall Holding and E.ON Ruhrgas (20 per cent each) and N.V. Nederlandse Gasunie (9 per cent).
Current Status
Nord Stream AG is pursuing a constructive approach toward implementing the gas pipeline construction project and as part of the permitting process is maintaining an active dialogue with all of the Baltic Sea countries for the purpose of conducting a detailed environmental impact assessment.
Nord Stream AG is also finalizing large-scale environmental studies on the entire pipeline route and is preparing an environmental impact assessment report to be published in early 2008.
Project Details
News Releases
November 6, 2007
Gazprom and Gasunie sign Agreement on Cooperation within Nord Stream and BBL projects
December 9, 2005
Gazprom launches construction of onshore section of North European Gas Pipeline
September 8, 2005
BASF, E.ON and Gazprom sign Agreement on North European Gas Pipeline through the Baltic