Coatings Industry News

Main News Page


Nord Stream 2 Pipeline Clears Major Obstacle

Friday, November 8, 2019

Comment | More

A key permit has been granted for the Nord Stream 2 pipeline project, according to reports. The endeavor would carry natural gas from Russia to Germany, though the Ukraine has continued to express ire.

Last week, Denmark’s energy agency announced that it had granted permission for pipeline to be built in nearby waters. According to CNBC, this measure knocks U.S. efforts to intervene with the project back on its heels.

Nord Stream 2 Pipeline

The construction for Russian gas giant Gazprom’s pipeline began in the Bay of Greifswald, located on Germany's Baltic Sea coast in May 2018. Nord Stream 2 will allow Moscow to route gas exports around Ukraine.

According to DW Business, Nord Stream 2, which is composed of two welded conduits, each with an inside diameter of 1.2 meters (4 feet), will move gas from northwestern Siberia 1,230 kilometers (764 miles) across the Baltic seabed through Swedish, Finnish and Danish waters, to northeastern Germany.

Since the establishment of Nord Stream 1 in 2011, the transit of Russian gas through Ukraine has declined. German chancellor Angela Merkel also highlighted the fact that Germany’s support for the pipeline was in question, as the project cannot go forward unless there were guarantees for Ukraine in terms of overland gas transit.

Gazprom is willing to maintain transit of gas through the Ukraine, but at lower volumes; the country rejected this offer.

According to Bloomberg, the U.S. has long opposed the pipeline, given the needs of Ukraine and the energy interdependence of Europe. A U.S. official also pointed out concerns that the pipeline would allow Russia to install monitoring technology in the Baltic Sea. (Though, Bloomberg notes, this is unlikely due to the fact Nord Stream 2 will run parallel to its predecessor; Nord Stream 1 could be used for the same purpose.)

In January, construction progress was reported, with the first line slated to be ready by November, and the second line slated to be ready for operation by December. In March, Germany and France reached an amended agreement regarding the Nord Stream 2 pipeline, and in June, President Donald J. Trump announced his consideration of using sanctions to block the controversial pipeline.

Recent Developments

The permit was for pipe to run through the Danish Exclusive Economic Zone south-east of Bornholm, which covers a 147-kilometer-long section of the route. Soon, prep work will begin, which includes the installation of concrete mattresses and rock placement that will support existing infrastructure.

“We are pleased to have obtained Denmark’s consent to construct the Nord Stream 2 Pipeline through the Danish continental shelf area in the Baltic Sea south-east of Bornholm. We will continue the constructive cooperation with Danish authorities to complete the construction of the pipeline,” said Samira Kiefer Andersson, Permitting Manager Denmark for Nord Stream 2 AG.

As of the announcement in late October, 2,100 kilometers of pipeline had been put in place, covering Russian, Finnish and Swedish waters, as well as a good portion German. The Danish section will be built with pipes stored in Mukran, located on the German island of Rügen. Construction on facilities in Russia and Germany is also nearly complete.

Permit Implications

According to CNBC, the EU, composed of 28 countries, is a lucrative market for the largest energy exporters. With Russian President Vladimir Putin welcoming Denmark’s decision, Ukrainian President Volodymyr Zelenskiy voiced concern that the move would both weaken Europe and continue to strengthen Russia.

Timothy Ash, Senior Emerging Markets Strategist at Bluebay Asset Management, told the news station that he would be surprised “if the U.S. does not roll out sanctions on things related to Nord Stream as they are eager to get a foothold in the European gas market via LNG (liquefied natural gas) exports.”

DW News reports that the Danish Energy Agency said that the country was "obliged" to permit the construction, due to the UN Convention on the Law of the Sea.

According to the BBC, the permit will take a month to come into effect. The project is slated to be operational in early 2020.

   

Tagged categories: Government; Infrastructure; NA; North America; Oil and Gas; Ongoing projects; Pipeline; Program/Project Management

Comment from Andrew Piedl, (11/8/2019, 12:45 PM)

The US is not happy because they were planning on running their own supply to Europe via Philadelphia


Comment Join the Conversation:

Sign in to our community to add your comments.


Advertisements
 
Fischer Technology Inc.

 
KTA-Tator, Inc. - Corporate Office

 
SAFE Systems, Inc.

 
Modern Safety Techniques

 
Tarps manufacturing, Inc.

 
HoldTight Solutions Inc.

 
NLB Corporation

 
DeFelsko Corporation

 
Sidewinder/Persyst Enterprises, Inc.

 
ABKaelin, LLC

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy Policy   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us