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Released October 13, 2020 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The final hurdle to the completion of the controversial Nord Stream 2 gas pipeline has been removed after Denmark granted permission for the pipeline to be laid in Danish waters.
The 1,260-kilometre (km) pipeline from Russia into Europe is more than 90% complete but has been subject to local permitting delays and a growing series of sanctions by the U.S. government against companies working on the project. The Danish Energy Agency has removed the final European barrier to the project by granting a permit to developer Nord Stream 2 AG to locate and operate a section of the pipelines on its continental shelf, as long as certain safety conditions are met. It stated: "Commissioning can only take place when at least one of the pipelines has been tested, verified and when relevant conditions in the construction permit and the operations permit have been met."
The 9.5 billion-euro ($10.5 billion) pipeline starts in Russia and passes through Finnish, Swedish, Danish and German marine areas, before it makes landfall on the northern German coast. The authorities in Russia, Finland, Sweden, Germany, and now Denmark, have all granted permits for the project. The pipelines can transport 55 billion cubic meters (Bcm) of natural gas per year, doubling the capacity of the existing Nord Stream pipeline. 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).
An initial round of U.S. sanctions imposed in January forced Swiss-based pipe-laying and decommissioning firm Allseas, which was responsible for pipe-laying on Nord Stream 2 and TurkStream, to stop working on both projects to comply. For additional information, see January 6, 2020, article - U.S. Sanctions Stop Nord Stream 2 Pipe-laying.
Since then, new sanctions under the Protecting Europe's Energy Security Clarification Act will extend sanctions to include penalties on companies involved in pipe-laying activities and those offering underwriting services, insurance or reinsurance services. It also adds sanctions on companies offering any services or facilities for the vessels being used, including welding equipment, retrofitting or tethering of the ships. Most recently, U.S. Secretary of State Mike Pompeo told Germany'sBild newspaper that the U.S. is building a coalition to stop completion of the Nord Stream 2 pipeline : "From the U.S. point of view, Nord Stream 2 endangers Europe because it makes it dependent on Russian gas and endangers Ukraine - which in my opinion worries many Germans. We hope Nord Stream 2 will not be completed and we are working on a coalition to prevent this from happening. We hope that the German government will also come to this." The German government, as reported by Industrial Info, has already rejected interference by the U.S. in the project. For additional information, see July 22, 2020, article - Germany Rejects New U.S. Sanctions on Nord Stream 2 Pipeline.
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 1,260-kilometre (km) pipeline from Russia into Europe is more than 90% complete but has been subject to local permitting delays and a growing series of sanctions by the U.S. government against companies working on the project. The Danish Energy Agency has removed the final European barrier to the project by granting a permit to developer Nord Stream 2 AG to locate and operate a section of the pipelines on its continental shelf, as long as certain safety conditions are met. It stated: "Commissioning can only take place when at least one of the pipelines has been tested, verified and when relevant conditions in the construction permit and the operations permit have been met."
The 9.5 billion-euro ($10.5 billion) pipeline starts in Russia and passes through Finnish, Swedish, Danish and German marine areas, before it makes landfall on the northern German coast. The authorities in Russia, Finland, Sweden, Germany, and now Denmark, have all granted permits for the project. The pipelines can transport 55 billion cubic meters (Bcm) of natural gas per year, doubling the capacity of the existing Nord Stream pipeline. 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).
An initial round of U.S. sanctions imposed in January forced Swiss-based pipe-laying and decommissioning firm Allseas, which was responsible for pipe-laying on Nord Stream 2 and TurkStream, to stop working on both projects to comply. For additional information, see January 6, 2020, article - U.S. Sanctions Stop Nord Stream 2 Pipe-laying.
Since then, new sanctions under the Protecting Europe's Energy Security Clarification Act will extend sanctions to include penalties on companies involved in pipe-laying activities and those offering underwriting services, insurance or reinsurance services. It also adds sanctions on companies offering any services or facilities for the vessels being used, including welding equipment, retrofitting or tethering of the ships. Most recently, U.S. Secretary of State Mike Pompeo told Germany's
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.
