Bypassing Denmark waters may extend construction time of Nord Stream 2 for 1 week – Gazprom

TASS Russian News Agency | Jul 15, 2019 at 5:28 PM

MOSCOW, July 15. / TASS/. The Nord Stream -2 construction time may increase by 34 km if Denmark agrees on a route bypassing its territorial waters through the exclusive economic zone, at the current construction speed, it may be built in a week, said Deputy Chairman of the Gazprom Board Oleg Aksyutin on air at Rossiya-24 TV channel on Monday.

"As for the route extension, this is approximately additional 34 km. Whether that's a lot or not, so to speak: today the speed of the pipe-laying vessel, which is laying the gas pipeline itself, is anywhere from 4 to 5 km per day, so an extra week of work," he said.

Nord Stream -2

The Nord Stream 2 project will consist of two gas pipeline lines with a total capacity of 55 billion cubic meters of gas per year from the coast of Russia through the Baltic Sea to Germany. The total capacity of the project is 55 billion cubic meters of gas per year. The cost of construction is estimated at 9.5 billion euros. The launch of the pipeline is expected in the end of 2019. Gazprom’s European partners in the project include German Uniper and Wintershall, Austrian OMV, French Engie, and Anglo-Dutch Shell. Gazprom partners will finance 50% of the project. The pipeline will bypass transit countries - Ukraine, Belarus, Poland, other Eastern European, and Baltic countries - through the exclusive economic zones and territorial waters of Russia, Finland, Sweden, Denmark, and Germany. Currently, only Denmark did not give permission for the construction.

On June 28, Nord Stream 2 AG, the Nord Stream-2 gas pipeline project operator, withdrew one of three route applications submitted to the Danish Energy Agency.

"Nord Stream 2 has withdrawn its application for the route through Danish territorial waters south of Bornholm and thus terminated the procedure lasting for more than two years, the company said. "We felt obliged to take this step because in more than two years since we filed this application, the former Danish government has not given any indication of coming to a decision", said Matthias Warnig, CEO of Nord Stream 2. The withdrawal of the original application is necessary to protect Nord Stream 2’s shareholder and the European investors from Austria, France, Germany and the Netherlands against the risk of further delays and financial losses," the company said. The applications for two other routes are still under review, the project operator noted. Nord Stream 2 AG "will continue to work constructively with the Danish authorities to ensure the timely consent for a route on the continental shelf," the company reported.

Earlier, the head of Austrian OMV Chairman Rainer Seele said he did not rule out delaying the launch of Nord Stream - 2 due to Denmark's position, which delays the coordination of the project. Gazprom Chairman Alexey Miller told reporters at the St. Petersburg International Economic Forum that the Danish section of the Nord Stream-2 gas pipeline can be built in a maximum of five weeks, regardless of the route, the deadline for issuing a permit and observing the construction schedule has not yet come.

"The elections were held in Denmark, the new government is being formed. The section that is in Denmark, it is very short, it is approximately 130 km. That is at most 5 weeks’ worth of work. I know this time frame, but I’m not going to tell you, but I can say that it's not today, and it’s not tomorrow either," said Miller said, answering the question when is the deadline for Denmark to give its construction permit in order to complete the project by the end of 2019.

The Nord Stream 2 project will consist of two gas pipeline lines with a total capacity of 55 billion cubic meters of gas per year from the coast of Russia through the Baltic Sea to Germany. The total capacity of the project is 55 billion cubic meters of gas per year. The cost of construction is estimated at 9.5 billion euros. The launch of the pipeline is expected in the end of 2019.