Energy industry

The implementation of the Nord Stream – 2 goes on schedule

Председатель Правления Газпром Алексей Миллер и Председатель Правления OMV AG Райнер Зеле. Фото gazprom.ru

Periodically there are reports in the media about the various obstacles in the implementation of the project of a new gas pipeline “Nord Stream – 2” from Russia to Europe – the demand for Ukrainian approval; objections of Poland and Slovakia; Lithuanian and Estonian claim of non-compliance with the Third Energy Package, etc. At the same time, Alexey Miller says that the project goes on schedule.

“Nord Stream – 2” – export gas pipeline from Russia to Europe under the Baltic Sea. Length – more than 1’200 km. Throughput – 55 bln m3 of gas per year. Start of operation is expected before the end of 2019. Joint project company Nord Stream 2 AG implements the project (share of partners: Gazprom – 50%, BASF / Wintershall, ENGIE, Uniper (E.ON), OMV, Shell – by 10%).

During the working meeting of Gazprom Chairman Alexey Miller and OMV AG Chairman Dr. Rainer Seele, which took place on August 23 in Moscow, the participants expressed confidence that the pipeline “Nord Stream – 2” is important for the energy system of Europe.

The parties also discussed assets swap between the companies.

Gazprom and OMV signed Term Sheet regarding an asset swap. OMV will acquire a 24.98% stake in the project of developing Blocks 4A and 5A of the Achimov deposits at the Urengoyskoye oil, gas and condensate field in exchange for Gazprom’s participation in Norwegian offshore assets of OMV (still is analyzed by Gazprom).

In order to strengthen and protect its position at European market, Gazprom held a similar asset swap with BASF / Wintershall and Shell.

Sources: Gazprom, Gazprom, Bloomberg, Reuters