Nord Stream gas pipeline changes route

Nord Stream, which plans to construct a major 27.5 billion cu m/year gas pipeline from Russia to Europe, has modified the pipeline route to extend north of Bornholm.

Aug 22nd, 2007

Uchenna Izundu
International Editor

LONDON, Aug. 22 -- Nord Stream AG, which plans to construct a major 27.5 billion cu m/year gas pipeline from Russia to Europe, has modified the pipeline route to minimize environmental impact and avoid delaying start up of operations because of the unsettled sea border line south of the Danish island Bornholm. Instead, Nord Stream has rerouted the pipeline so that it will extend north—rather than south—of Bornholm.

Nord Stream's first pipeline will increase from 1,200 km to 1,280 km and is expected to start operations in 2010. A company spokeswoman told OGJ that the second pipeline, which will be parallel to the first, will also follow the same route and will be finished a year later. It will also double the pipeline's capacity to 55 billion cu m/year.

Nord Stream's studies revealed that more northerly route will be further away from known munitions dump sites south of Bornholm, which was a controversial issue under the original route proposal.

The company is carrying out the final environmental impact assessment report required under Espoo, which governs the obligations of parties to assess the environmental impact of certain activities during the planning stage for projects that cross international boundaries. The report will be finished later this year. "The full report will be presented to the authorities of all countries involved and will be made available for public scrutiny," Nord Stream said.

Nord Stream is an international joint venture of OAO Gazprom, which holds a 51% stake, and Wintershall and E.On Ruhrgas, each holding 24.5%.

Contact Uchenna Izundu at uchennai@pennwell.com.

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