Uchenna Izundu
International Editor
LONDON, Apr. 9 -- Nord Stream AG has dropped plans to build a maintenance service platform off Sweden for its proposed offshore gas pipeline following pressure from the Swedish government.
The plans were controversial because of the government's concerns about the environment and restriction to fishing and navigation lanes. Last December Nord Stream filed an application to build the service platform off Gotland Island in Sweden's Exclusive Economic Zone. This would have been at the midpoint of the planned route to deliver Russian gas to Europe via the Baltic Sea.
Nord Stream instead will use specially developed pigs that can travel the 1,200 km pipeline distance. "Currently, studies are being finalized which describe the technical design of these gauges. Other pipeline projects, such as Franpipe and Langeled, show that long distance pigging is feasible for long high-pressure, large-diameter pipes," Nord Stream said.
Costs for the project will soar to €7.4 billion from €5 billion following a comprehensive technical analysis and rising material costs, a company spokeswoman told OGJ.
It has submitted an environmental study to the Swedish government looking at the potential impact of the pipelines on the environment. "Nord Stream believes that all prerequisites have been met to start dialogue with the Swedish government about this important project for meeting Europe's energy supply needs and protecting the climate," the company added.
The project involves two parallel 27.5 billion cu m/year pipelines, each of which is 1,220 km in length. The first is scheduled to start deliveries in the spring of 2011. Full capacity of about 55 billion cu m/year will be reached in the second phase, when operation of the second line starts.
Gazprom holds a 51% share in Nord Stream along with BASF-Wintershall and E.On Ruhrgas AG which each hold 20%. Dutch gas infrastructure company NV Nederlandse Gasunie is acquiring a 9% stake.
Contact Uchenna Izundu at [email protected].
