Nord Stream Adheres to Plan to Deliver Gas from 2011
Substantial investments approved by Shareholders Committee in June
July 23, 2008 | Zug | Nord Stream is adhering to plans to start natural gas deliveries through its Baltic Sea pipeline in 2011. The consortium has approved the major investments to implement its plans, has concluded the corresponding contracts with supplier companies and has made meticulous plans for the permission process. Moreover, it will by the end of 2008 complete a transboundary Environmental Impact Assessment (EIA), culminating in an EIA report. Intensive contacts with the authorities of the “affected” countries – Denmark, Finland, Germany, Russia and Sweden – will take place primarily during the year 2009 to obtain national consents. Pipeline construction is planned to start in early 2010 enabling gas to start flowing in 2011.
Background on the project’s current status
On 4 June 2008, the Nord Stream Shareholders Committee confirmed the project plan and approved substantial project investments. Matthias Warnig, Managing Director of Nord Stream AG, said: “The investment decisions taken by the Shareholders Committee mean we are on track. We are counting on being able to deliver the extra gas Europe needs from 2011 onwards.” In late June, Nord Stream AG signed a contract worth more than 1 billion Euros for Saipem S.p.A. (Italy) to lay the gas pipeline. Current planning is for Saipem to begin pipe laying in early 2010, deploying two pipe-laying vessels, and completing installation of the first of the two planned lines in first-half of 2011. A contract will also be concluded in the coming few weeks with EUPEC PipeCoatings S.A. (France) for the concrete weight-coating of the pipes and for logistics services. The treated pipe segments will be held at various interim stock yards around the Baltic Sea, thereby ensuring delivery distances to installation of no more than 100 nautical miles.
The project plan approved by the Shareholders Committee, takes into account consultations with all Baltic Sea countries. At the request of national authorities, Nord Stream examined possible pipeline route amendments around the Danish island of Bornholm, in the Gulf of Finland and, in Russia’s exclusive economic zone around the island of Gogland. Matthias Warnig says: “We are currently analysing the additional surveys we conducted earlier this year. The results will form part of the EIA report, of which a final draft will be submitted to all Baltic Sea countries within the international consultations according to the Espoo Convention in October. We are exactly on schedule,” he notes. At the end of 2008 or in early 2009, Nord Stream will submit applications for permission to proceed with pipeline construction and installation in each of the “affected” countries: they are the Baltic Sea countries whose coastal waters or exclusive economic zone the pipeline is projected to cross.
