Nord Stream 2 project gets European backing

Nord Stream 2 has signed financing agreements for the Nord Stream 2 pipeline project with Engie, Omv, Shell, Uniper and Wintershall.

The five European energy companies will fund 50 percent of the project – which is being led by Russian exploration and production company Gazprom. The total cost of the project is estimated to be approximately EUR9.5 bn (USD10.4 bn). Gazprom is and will remain the sole shareholder of the project company, Nord Stream 2 AG.

The 1,220 km long Nord Stream 2 gas pipeline, which will have a total capacity of 55 bn cu m per year, will provide a direct link between Russian gas reserves and European gas consumers from the coast of Russia via the Baltic Sea to Greifswald, Germany. Construction work is scheduled to start in 2018, with the project reaching its conclusion by the end of 2019.

Gazprom said the financial commitment by the European companies underscores the Nord Stream 2 project’s strategic importance for the European gas market, contributing to competitiveness as well as medium and long-term energy security especially against the background of expected declining European production.

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Source: Gazprom

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