Nord Stream 2 secures permit in Russia for $9bn gas pipeline project

Nord Stream 2 has secured the construction permit for the Russian segment of its proposed €8bn ($9.1bn) inter-country offshore export gas pipeline project from the Russian Ministry of Construction and Utilities.

Image: A pipe for the Nord Stream 2 Pipeline is fitted in its wire cage. Photo: courtesy of Nord Stream 2.

The Nord Stream 2 pipeline, which will be made up of two pipeline strings, will transport Russian natural gas to the rest of the European market through the Baltic Sea.

Nord Stream 2 said that the practical execution of the project will commence shortly. Construction will be carried out in compliance with the terms of newly issued permit and as per the State Environmental Expert Review while taking into account the environmental aspects surrounding the project.

The offshore export gas pipeline project is awaiting another major permit in Russia which is for the construction of an underwater pipeline in the Russian waters. Nord Stream 2 expects to get the permit in the nearest future from the Russian Environmental Authority (Rosprirodnadzor).

Nord Stream 2 chief technical officer Sergey Serdyukov said: “We are very pleased to have obtained this permit. This is the result of extensive and thorough teamwork that has been carried out throughout the comprehensive permitting process. This marks an important milestone for the Nord Stream 2 project.”

Till date, Nord Stream 2 has secured all the required permits for construction and operation of the subsea natural gas pipeline from Germany, Finland and Sweden. In Denmark, a national permitting procedure for the project is in progress.

Nord Stream 2 is an expansion of the existing Nord Stream offshore natural gas pipeline which was laid between Russia and Germany in the Baltic Sea.

The expanded pipeline will feature two 1,200km international offshore natural gas pipelines which will source gas from the Russian field Bovanenkovo in Yamal Peninsula and supply it to different parts of Europe.

Nord Stream 2, which will have a total capacity of transporting 55 billion cubic meters of gas per year, is scheduled to begin operations in 2019.

Russian energy giant Gazprom holds a stake of 50% stake in Nord Stream 2 while BASF/Wintershall, Engie, E.On, OMV, and Shell, all own a stake of 10% each.