Gazprom announced that on april 24th, its Nord Stream 2 project took an important step towards its implementation, as Nord Stream 2 AG signed financing agreements for the pipeline project with ENGIE, OMV, Shell, Uniper and Wintershall.
The project looks at responding to the need of the European Union for additional gas imports and thereby improving security of supplies to Europe. The 1,220-kilometer Nord Stream 2 gas pipeline, with a total capacity of 55 billion cubic meters a year, will provide a direct link between reliable Russian gas reserves and European gas consumers, from the coast of Russia via the Baltic Sea to Greifswald, Germany.
Specifically, according to the company’s statements, the five European energy companies have committed to provide long-term financing for 50 % of the total cost of the project, which is currently estimated to be €9.5 billion.
Each European company will fund up to €950 million. Gazprom will remain the sole shareholder of the project company, Nord Stream 2 AG. Construction work will begin in 2018 and will be completed by the end of 2019.
The company highlighted the Nord Stream 2 project’s strategic importance for the European gas market, as it contributes to competitiveness as well as medium and long-term energy security, especially against the background of expected declining European production.
