European firms commit to financing half of Nord Stream 2 gas pipeline

Five European energy companies have committed to provide long-term financing for 50% of the total cost of the Nord Stream 2 natural gas pipeline project.

Five European energy companies have committed to provide long-term financing for 50% of the total cost of the Nord Stream 2 natural gas pipeline project.

The project company, Nord Stream 2 AG, signed agreements with Engie, OMV AG, Royal Dutch Shell PLC, Uniper, and Wintershall Holding GMBH. Russia’s Gazprom is and will remain the sole shareholder of Nord Stream 2 AG.

Total cost is estimated at €9.5 billion. Each of the five European companies will fund as much as €950 million.

The 1,220-km twin pipelines will have a total capacity of 55 billion cu m/year and provide a direct link from Russian gas reserves to European consumers from the Russian coast via the Baltic Sea to Greifswald in Germany.

Construction is scheduled to begin in 2018 and be completed by yearend 2019. Nord Stream 2 will largely follow the route of the existing Nord Stream pipeline (OGJ Online, Apr. 4, 2016).

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