Page 8 - FSUOGM Week 40 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom starts filling first

Nord Stream 2 string

EUROPE RUSSIA’S Gazprom has begun filling the first independent operator. Under an EU court ruling
string of the Nord Stream 2 pipeline with nat- that Gazprom recently failed to get overturned
Nord Stream 2 could ural gas, ahead of its commercial launch, which in a German court, however, doing so would
help ease supply Moscow has said should happen later this year. violate the bloc's rules on the unbundling of gas
constraints in Europe. Gazprom announced that Nord Stream 2’s transport infrastructure from supply. This could
construction had reached completion in early mean Gazprom has to spin off Nord Stream 2,
September. It has since undergone pre-com- which would likely result in delays that would
missioning activities to assure the pipeline’s prevent the pipeline coming on stream this year
integrity, the Nord Stream 2 operating company, as Russia hopes.
wholly-owned by Gazprom, said in a statement Gas is now trading at above $1,100 per 1,000
on October 4. cubic metres on the European wholesale mar-
“This included the internal inspection by spe- ket – an unprecedented height. There are fears of
cial devices, as well as external visual and instru- a further increase and possible shortages in the
mental surveys of the pipeline,” Nord Stream 2 event of a cold winter. Gazprom has been blamed
said in a statement on October 4. The pipeline for exacerbating the crisis by withholding some
is built and independently certified according to supply, even though it has been sending more gas
applicable technical and industry standards to this year than last.
ensure reliable and safe operations.” A decision on Nord Stream 2’s certification
Nord Stream 2 could help ease supply con- is likely to be made after a new government is
straints in Europe that have caused natural gas formed in Germany following coalition talks.
prices to soar to record heights, undermining The decision will be up to Germany’s regulator
the post-pandemic economic recovery. But first but will be reviewed by the European Commis-
Nord Stream 2 will need to be certified as an sion. ™

Energinet warns of $157mn cost

overrun at Baltic Pipe

DENMARK DANISH gas grid operator Energinet has Danish section is now projected to cost €1.1bn.
warned of a €135mn ($157mn) hike in costs “We have been forced to revise the budget,
Construction was halted at the Danish section of the Baltic Pipe, caused due to a number of unforeseen costs, not
after an environmental partly by issues with environmental permitting. least stemming from the consequences of the
permit was repealed. Denmark’s environmental and food appeals repealed environmental permit,” Energinet said.
board announced in June that it had repealed “The temporary halt to construction has meant
a construction permit for Baltic Pipe’s onshore a lot of extra claims from the contractors who
section, prompting concerns that the pipe- were already working on the onshore pipeline at
line would not come online in October 2022 the time. We also have to acknowledge that the
as planned. The timing of its launch is key as integration of Baltic Pipe into the existing Nybro
Poland, which is due to take most of its gas, wants terminal is extremely complex and costly.”
to sever supply ties with Russia’s Gazprom at the Despite these setbacks, Energinet still insisted
end of that year after its long-term contract runs that the project was still a profitable venture,
out. projecting it would save Danish gas consumers
Construction was halted after the permit was €270mn in tariffs. At full capacity the pipeline
repealed, and neither Energinet nor Gaz-System, will flow 10bn cubic metres per year of gas.
which operates Baltic Pipe’s Polish section, have The government in Warsaw has said it wants
said when it might resume. Energinet is cur- to fully substitute the gas supplies it currently
rently in the process of obtaining a new permit. buys from Russia with volumes from Norway
The permitting issue alone added €80mn to via Baltic Pipe, and LNG shipments.
Baltic Pipe’s cost in Denmark, Energinet said. Permitting issues in Denmark were also one
Design changes to Baltic Pipe’s connection with of the chief reasons for the delay of Russia’s Nord
Norwegian infrastructure and high demand for Stream 2 pipeline beyond its scheduled launch
construction contractors were other contrib- at the end of 2019. Poland vehemently opposes
uting factors, the operator said. As a result, the that project. ™

P8 www. NEWSBASE .com Week 40 06•October•2021