Nord Stream might benefit from Russia-Ukraine row
Russia is likely to get increased European approval for its intention to diversify gas exports routes as the current stand-off between Russia and the Ukraine on gas exports aggravates. That will benefit the Nord Stream pipeline project across the Baltic Sea.
The 1220 km long Nord Stream pipeline is projected to be a direct Russian supply link to the EU with a transmission capacity of about 55 billion cubic metres a year.
The project has however met fierce resistance from several of the neighbouring countries, among them Sweden, which says it fears underwater environmental consequences. The pipeline will run across the territorial waters of Finland, Sweden and Germany.
That criticism might now calm, as the current supply routes of Russian gas to EU countries are at jeopardy by the row between Russia and the Ukraine. About 85 percent of Russian exports to the EU today run through the Ukraine.
As reported by The Telegraph, “when push comes to shove, the EU may prefer energy security to undersea ecology”.
The Nord Stream pipeline is planned fuelled partly by gas from the Shtokman field in the Barents Sea. Also gas from the Yamal Peninsula is likely to run through the pipeline.
Nord Stream is a joint project of Gazprom (51%), BASF/Wintershall (20%), E.ON Ruhrgas (20%) and Gasunie (9%). The first of two gas lines, with a transmission capacity of around 27,5 billion cubic metres a year is due for completion in 2011.
Total investment in the offshore pipeline is projected at 7.4 billion EUR, the project website reports.
