Sweden says No! to Nord Stream 2 pipeline

Nord Stream 2 pipeline project that will carry Russian gas to the EU through the Baltic Sea, has hit a stumbling block.

Namely, the authorities of the Swedish Region Gotland and the municipality Karlshamn have decided not to sign an agreement for the utilization of their respective harbours – Slite and Karlshamn for the storage of the piping for the project, citing “security situation.”

According to Nord Stream 2, a Swiss-incorporated company managing the project, both ports had until very recently signaled their commercial interest in cooperating on the project.

However, local representatives this week had a meeting with Foreign Ministry an Ministry of Defense to discuss the matter, after which they’ve changed their stance.

The company said on Thursday that the consequence of the decision would be that Wasco Coatings GmbH, a company supplying pipes for the project, would not be able to sign contracts for the use of these harbours for pipe transshipments.

If both Swedish municipalities take a formal decision preventing the use of the harbours, Nord Stream 2 and its contractor Wasco Coatings, will look for alternative logistics facilities around the Baltic Sea, the company said.

“During the first Nord Stream project, the company, Swedish authorities, municipalities, suppliers and local communities all cooperated in an open, constructive and fruitful manner over a period of many years. Nord Stream 2 would like to continue such cooperation guided by the same principles,” the company added.

To remind, Nord Stream 2 last week signed a letter of intent with offshore services company Allseas for the pipelaying works. Allseas told Offshore Energy Today it would use its largest vessel, the Pioneering Spirit for the job.

The Nord Stream 2 shareholders are Gazprom, the German companies E.ON SE and BASF SE/Wintershall Holding GmbH, the Anglo-Dutch Royal Dutch Shell plc, the Austrian OMV AG and the French ENGIE S.A.

The pipeline involves two parallel 48 inch lines, roughly 1,200 km, each starting from south-west of St Petersburg and ending at German coast, Greifswald.

According to the consortium, the project builds on the experience of the first Nord Stream, which opened twin pipelines through the Baltic Sea in 2011 and 2012.

Similar to its predecessor project, Nord Stream 2’s natural gas pipelines through the Baltic Sea will have the capacity to transport 55 billion cubic meters (bcm) of Russian gas a year to the EU, for at least 50 years.

Offshore Energy Today Staff

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