Nord Stream

The New Gas Supply Route for Europe
• • • • A link between Russia and the EU via the Baltic Sea It will carry natural gas to businesses and homes Transport up to 55 billion cubic metres of gas each year – enough to supply 25 million households There are 4 companies involved in the construction:  OAO Gazprom  BASF/Wintershall Holding AG  E.ON Ruhrgas AG  N.V. Nederlandse Gasunie It will be 1,220 km long It will consist of 2 parallel lines:  The first line: o 27.5 billion cubic metres o Completion in 2011  The second line: o Completion in 2012 o It would double annual capacity to about 55 billion cubic metres Total investment is estimated at 7.4 billion Euros

• •

The Route • • • Vyborg, Russia to Greifswald, Germany Via the Baltic Sea There will be a 917 km long onshore connection to the main line in the Russian territory, it’s is being built by Gazprom, it connects the Nord Stream to the Russian gas transmissions system From Greifswald to the south and west of Germany two other connections will be built, the total length will be 850 km, it will be built by WINGAS and E.ON Ruhrgas The main line of the Nord Stream will go to Germany, from there it can be transported to many different countries in Europe, such as Demark, the Netherlands, Belgium, the UK and France

• •

Why is the pipeline so important for Europe? • • • • It will help the energy security of the continent by transporting European gas to European countries It will strengthen relationships with the world’s largest gas producer, Russia Gas imports to the EU are expected to rise by 195 billion cubic metres by 2025 – the Nord Stream could provide 25% of this extra demand Most of the supplies to the Nord Stream will come from the Yuzhno-Russkoye oil and gas field, this is one of the largest fields in the world and will be supplied by Gazprom – this will mean the supply to Europe will be quite secure, without the risk of the natural gas running out too soon Without the Nord Stream the demands for gas in Europe will exceed the supplies that they receive, therefore they will run out It will meet about 25% of Europe’s additional import needs It provides gas to the northern countries of Europe, although it produces many transit states, which could cause geopolitical issues between countries

• • •

Environment and Safety • • • Will be built using environmentally sound technology Conducted a number of studies into the ecosystem of the Baltic Sea, these results are considered in the planning of the pipeline Carrying out EIA (Environmental Impact Assessment) on the route of the pipeline

South Stream
Europe’s Energy Security
• • • Estimated investment: 7-10 billion Euros Estimated completion: end of 2015 Key players:  Gazprom  Eni  South Stream AG  Gaz de France  Saipem  Lead contractors and designers It would produce 30 billion cubic metres per year 63 billion cubic meters per annum – pipeline’s design capacity Intergovernmental agreements have been signed between Russia and:  Bulgaria – January 18, 2008  Serbia – January 25, 2006  Hungary – February 28, 2008  Greece – April 29, 2008

• • •

The Route • • Onshore Section in Russia:  Pochinki Compressor Station to the Black Sea coast Offshore Section:  Through the Black Sea  900km long  2000+ m deep Onshore Section in Europe:  Arrives at Bulgaria  May go through Serbia, Greece, Hungary, Austria and Slovenia

Why is the pipeline so important for Europe? • • • • It will increase the energy security of Europe It provides gas to the southern countries of Europe without creating too many transit states; which can cause geo political problems in the future By 2020-2025 Europe will demand 200 billion cubic meters more of gas per year Diversify routes and cut the length of the routes of the pipelines by going offshore rather than through, and therefore disrupting, countries

Environment and Safety • • • • Natural gas is the cleanest of the fossil fuels Temporary and local effect on the marine environment – proven by the Blue Stream pipeline The risk of potential pollution can be minimised The companies constructing this pipeline have a lot of experience in building them and know how to minimise the risks of environmental damage, e.g. Gazprom