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Released September 21, 2021 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The most controversial gas pipeline project in recent memory, Nord Stream 2, is complete and could be supplying gas from Russia into Europe in the coming months.
Project backer, Russia's state-owned oil and gas giant Gazprom (PINK:OGAZPY) (Moscow), said that it had finished construction on the US$11 billion subsea pipeline at the end of last week. The 1,200-kilometer pipeline has two parallel 48-inch wide pipelines--doubling the capacity of the original Nord Stream Pipeline--and capable of transporting 55 billion cubic meters (bcm) of natural gas per year. They run from southwest of Russia's St. Petersburg through the territories and waters of a number of European Union (EU) countries before ending at Greifswald on the German coast.
"Specialists on the lay-barge Fortuna welded the last pipe of the two strings of the Nord Stream 2 pipeline," read a statement from the joint venture development company, Nord Stream 2. "The pipe number 200,858 was subsequently lowered onto the seabed in German waters. As the next step, the section of the pipe coming from the German shore will be connected to the section coming from the Danish waters in a so-called above water tie-in. Afterwards, the required pre-commissioning activities are carried out with the goal to put the pipeline into operation before the end of this year. Nord Stream 2 will contribute to meeting long-term needs of the European energy market for gas imports, improving supply security and reliability, and providing gas under sensible economic conditions."
The next stage for the pipeline is getting it certified by the German energy regulator, Bundesnetzagentur (BNetzA), which received the application papers this week. "Nord Stream 2 AG has applied for certification as an independent transmission operator under sections 10 to 10e of the Energy Industry Act and has now submitted all necessary documents," it stated in an update on its website this week. "The time period started on Sept. 8. The Bundesnetzagentur has four months from this date to produce a draft decision and transmit it to the European Commission." Nord Stream 2 will have to comply with European Union (EU) unbundling rules that require pipeline owners to be different from the gas suppliers to ensure fair competition. The pipeline is 50% owned by five European partners: 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).
The pipeline has been highly divisive to political relations between the U.S. and Europe and saw economic sanctions applied by both parties in recent years. The U.S. claimed it will increase Europe's reliance on Russian gas which already accounts for roughly 40% of its supply. It would also threaten the lucrative sale of U.S.-sourced LNG to Europe. Both parties buried the hatchet this summer when Germany and the U.S. agreed that they would prevent Russia from using the pipeline as a political weapon by withholding gas supplies and would increase support to Ukraine, which was traditionally the main gas transit route for Russian gas into Europe. For additional information, see July 23, 2021, article - Germany, U.S. Reach Deal on Russian Nord Stream 2 Gas Pipeline.
The pipeline bypasses Ukraine, which will lose billions of dollars in gas transit fees. Ukraine, with the support of the European Union and the U.S., has condemned Russia's armed backing of separatists trying to bring the Crimea region of the country back under Russia control.
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. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Project backer, Russia's state-owned oil and gas giant Gazprom (PINK:OGAZPY) (Moscow), said that it had finished construction on the US$11 billion subsea pipeline at the end of last week. The 1,200-kilometer pipeline has two parallel 48-inch wide pipelines--doubling the capacity of the original Nord Stream Pipeline--and capable of transporting 55 billion cubic meters (bcm) of natural gas per year. They run from southwest of Russia's St. Petersburg through the territories and waters of a number of European Union (EU) countries before ending at Greifswald on the German coast.
"Specialists on the lay-barge Fortuna welded the last pipe of the two strings of the Nord Stream 2 pipeline," read a statement from the joint venture development company, Nord Stream 2. "The pipe number 200,858 was subsequently lowered onto the seabed in German waters. As the next step, the section of the pipe coming from the German shore will be connected to the section coming from the Danish waters in a so-called above water tie-in. Afterwards, the required pre-commissioning activities are carried out with the goal to put the pipeline into operation before the end of this year. Nord Stream 2 will contribute to meeting long-term needs of the European energy market for gas imports, improving supply security and reliability, and providing gas under sensible economic conditions."
The next stage for the pipeline is getting it certified by the German energy regulator, Bundesnetzagentur (BNetzA), which received the application papers this week. "Nord Stream 2 AG has applied for certification as an independent transmission operator under sections 10 to 10e of the Energy Industry Act and has now submitted all necessary documents," it stated in an update on its website this week. "The time period started on Sept. 8. The Bundesnetzagentur has four months from this date to produce a draft decision and transmit it to the European Commission." Nord Stream 2 will have to comply with European Union (EU) unbundling rules that require pipeline owners to be different from the gas suppliers to ensure fair competition. The pipeline is 50% owned by five European partners: 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).
The pipeline has been highly divisive to political relations between the U.S. and Europe and saw economic sanctions applied by both parties in recent years. The U.S. claimed it will increase Europe's reliance on Russian gas which already accounts for roughly 40% of its supply. It would also threaten the lucrative sale of U.S.-sourced LNG to Europe. Both parties buried the hatchet this summer when Germany and the U.S. agreed that they would prevent Russia from using the pipeline as a political weapon by withholding gas supplies and would increase support to Ukraine, which was traditionally the main gas transit route for Russian gas into Europe. For additional information, see July 23, 2021, article - Germany, U.S. Reach Deal on Russian Nord Stream 2 Gas Pipeline.
The pipeline bypasses Ukraine, which will lose billions of dollars in gas transit fees. Ukraine, with the support of the European Union and the U.S., has condemned Russia's armed backing of separatists trying to bring the Crimea region of the country back under Russia control.
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. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
