Nord Stream Pipeline Progressing as Planned (Baltic Sea)
- Business & Finance
Construction of the Nord Stream Pipeline continues on track. Over 1,000 kilometres of Line 1 have been laid in the Baltic Sea and pipe-laying works have already been completed at the landfalls for Line 2.
The project has received all the necessary permits, and all pipes and construction capacities have been procured. “Gas deliveries from Line 1 will begin before the end of 2011, and Line 2 will be launched in 2012,” says Matthias Warnig, Managing Director of Nord Stream AG. The construction schedule of both lines is confirmed by all of Nord Stream’s shareholders.
Recent discussions to the contrary of Nord Stream’s schedule arose due to concerns about other would-be infrastructure projects.
Nord Stream is a gas pipeline that will link Russia and the European Union via the Baltic Sea. It will transport natural gas to supply both businesses and private households. The new pipeline will be an important factor for energy security in Europe.
Nord Stream is a joint project of five major companies: OAO Gazprom, BASF SE/Wintershall Holding GmbH, E.ON Ruhrgas AG, N.V. Nederlandse Gasunie and GDF SUEZ S.A. The combined experience of these energy companies ensures the best technology, safety and and corporate governance for this project, which aims to provide a secure supply of energy for Europe.
Nord Stream will be 1,224 kilometres long and will consist of two parallel lines. The first one, with a transmission capacity of around 27.5 billion cubic metres a year is due for completion in 2011. The second line is due to be completed in 2012, doubling annual capacity to around 55 billion cubic metres. This is enough to supply more than 26 million households in Europe.
Total investment in the offshore pipeline is projected at 7.4 billion euros. The exact budget will be calculated on the basis of cost estimates for pipe supplies, logistics and installation capacity, as they are the main cost factors for any offshore pipeline project.
Source:Nord Stream, February 22, 2011; Image: