Nord Stream
Significance
The Nord Stream gas pipeline 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 market. Gas imports to the EU countries are anticipated to grow in the nearest decade by nearly 200 billion cubic meters 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 this 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
The project execution will ensure sustainability and energy security in Europe
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
The environmental impact assessment is carried out before construction starts
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 kilometers. Planned for commissioning in 2011, Nord Stream’s first string will have a throughput capacity of 27.5 billion cubic meters per year. Completion of the second string by 2012 will raise Nord Stream’s throughput capacity to 55 billion cubic meters.
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 Baltic Sea area along the Nord Stream route was thoroughly examined before the pipeline placement start-up. The pipeline route is as straightforward as possible, however, it bypasses environmentally sensitive areas, chemical weapons dump sites, military zones, critical navigation routes and other dedicated areas serving business or recreational purposes. The Nord Stream route is designed so as not to cross the World War II ammunition dump sites.
Environmental compliance
The Baltic Sea ecosystem won’t be disrupted
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.
A detailed environmental impact assessment has been performed prior to launching the construction operations.
Nord Stream will be built in compliance with the most rigid environmental standards and without the Baltic Sea ecosystem disruption. In order to minimize the environmental impacts, the construction operations will be halted for the herring spawning season, as well as over the period of migratory birds’ stopover in this region.
Resource base
Nord Stream will receive natural gas from the Unified Gas Supply System of Russia.
The Yuzhno-Russkoye oil and gas field will be a major feedstock base for gas supplies via the pipeline. The Nord Stream will also export gas from the Yamal Peninsula, Ob and Taz Bays and Shtokman field.
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 June 10, 2008 N. V. Nederlandse Gasunie was added into the Nord Stream AG shareholders register as a new shareholder. Pursuant to the Umbrella Agreement entered into by Gazprom and Gasunie, the Dutch company obtained a 9 per cent stake in Nord Stream AG owing to a reduction in E.ON Ruhrgas and Wintershall Holding stakes by 4.5 per cent each.
As a result, Nord Stream AG shareholdings split in the following way: Gazprom – 51 per cent, Wintershall Holding and E. ON Ruhrgas – 20 per cent each, N. V. Nederlandse Gasunie – 9 per cent.
Current status
On April 9, 2010 the Nord Stream gas pipeline construction was launched in the Baltic Sea. To lay the first string of the gas pipeline, three vessels will be engaged between 2010 and 2011, of which Castoro 6 has already started laying pipes in the Baltic Sea.
The first string of the gas pipeline, to be completed in 2011, will be immediately followed by the second string construction start-up. The second string will allow increasing the pipeline’s throughput capacity from 27.5 to 55 billion cubic meters. In 2012 the second string of the pipeline will reach the German coast near the town of Greifswald.
