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Released November 11, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The final obstacle to the controversial 9.5 billion-euro ($11.6 billion) Nord Stream 2 gas pipelines has been removed after permission was granted by Denmark to laying pipeline across its international seabed.
The Danish Energy Agency granted a permit to developer Nord Stream 2 AG to construct natural gas pipelines on the Danish continental shelf, removing the final barrier to the project, which is now more than 80% complete. Three possible routes have been put forward to the Energy Agency since 2017. Industrial Info reported at the end of September that pipe-laying was 75% complete. Without this permission, the developers had admitted that the Danish block could delay completion by up to eight months and cost an additional 660 million euro ($731 million). For additional information, see September 25, 2019, article--Nord Stream 2 75% Complete but Choppy Waters Ahead.
"Denmark is obliged to allow the construction of transit pipelines with respect to resources and the environment and if necessary to assign the route where such pipelines should be laid," the Agency stated. "The Danish Energy Agency has assessed that the south-eastern route on the continental shelf is preferable to the north-western route. This is mainly due to an assessment of the impact on shipping and Natura 2000 areas. Among the two south-eastern route alternatives proposed by the company, the Danish Energy Agency has approved the shortest route, since this route provides the least risk and impact from an environmental and safety perspective and therefore is the preferable choice."
The Nord Stream 2 pipeline, which will now cross the Danish continental shelf, is part of a larger pipeline project, consisting of two parallel pipelines running 1,230 kilometres (km) for the transport of gas from Russia to Germany. The natural gas pipelines start in Russia and pass through Finnish, Swedish, Danish and German marine areas before going ashore at the German coast. The pipelines can transport 55 billion cubic metres (bcm) of natural gas per year, doubling the capacity of the existing Nord Stream strings. Authorities in Russia, Finland, Sweden and Germany have already granted permits for the project. The pipeline will be commissioned next year. Russia's oil and gas major Gazprom (PINK:OGAZPY) (Moscow), holds a 50% stake in the pipeline, and the rest is owned by five European Union (EU) shareholders including Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), OMV AG (OTC:OMVKY) (Vienna, Austria), BASF/Wintershall (Ludwigshafen, Germany) and ENGIE (EPA:GSZ) (Paris, France).
Poland and some of the Baltic states have fought against Nord Stream 2, claiming Europe will become even more dependent on Russian gas. The U.S. has been vocal in its opposition to Nord Stream 2 and has threatened sanctions against the companies involved.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The Danish Energy Agency granted a permit to developer Nord Stream 2 AG to construct natural gas pipelines on the Danish continental shelf, removing the final barrier to the project, which is now more than 80% complete. Three possible routes have been put forward to the Energy Agency since 2017. Industrial Info reported at the end of September that pipe-laying was 75% complete. Without this permission, the developers had admitted that the Danish block could delay completion by up to eight months and cost an additional 660 million euro ($731 million). For additional information, see September 25, 2019, article--Nord Stream 2 75% Complete but Choppy Waters Ahead.
"Denmark is obliged to allow the construction of transit pipelines with respect to resources and the environment and if necessary to assign the route where such pipelines should be laid," the Agency stated. "The Danish Energy Agency has assessed that the south-eastern route on the continental shelf is preferable to the north-western route. This is mainly due to an assessment of the impact on shipping and Natura 2000 areas. Among the two south-eastern route alternatives proposed by the company, the Danish Energy Agency has approved the shortest route, since this route provides the least risk and impact from an environmental and safety perspective and therefore is the preferable choice."
The Nord Stream 2 pipeline, which will now cross the Danish continental shelf, is part of a larger pipeline project, consisting of two parallel pipelines running 1,230 kilometres (km) for the transport of gas from Russia to Germany. The natural gas pipelines start in Russia and pass through Finnish, Swedish, Danish and German marine areas before going ashore at the German coast. The pipelines can transport 55 billion cubic metres (bcm) of natural gas per year, doubling the capacity of the existing Nord Stream strings. Authorities in Russia, Finland, Sweden and Germany have already granted permits for the project. The pipeline will be commissioned next year. Russia's oil and gas major Gazprom (PINK:OGAZPY) (Moscow), holds a 50% stake in the pipeline, and the rest is owned by five European Union (EU) shareholders including Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), OMV AG (OTC:OMVKY) (Vienna, Austria), BASF/Wintershall (Ludwigshafen, Germany) and ENGIE (EPA:GSZ) (Paris, France).
Poland and some of the Baltic states have fought against Nord Stream 2, claiming Europe will become even more dependent on Russian gas. The U.S. has been vocal in its opposition to Nord Stream 2 and has threatened sanctions against the companies involved.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
