5 European energy firms fund Gazprom’s gas pipeline project

5 European energy firms to fund Gazprom’s gas pipeline project

7:39 AM, 25th April 2017
5 European energy firms to fund Gazprom’s gas pipeline project
Gazprom is the sole shareholder of Nord Stream 2 AG. (File photo)

THE HAGUE, NETHERLANDS: Five European energy companies – Royal Dutch Shell plc (Shell), Engie, OMV, Uniper SE and Wintershall Holding GmbH have signed financing agreements with Nord Stream 2 AG, the company responsible for the planning, construction and future operation of the Nord Stream 2 pipeline.

Gazprom is the sole shareholder of Nord Stream 2 AG. The 1,220-kilometer pipeline will be able to transport a total capacity of 55 billion cubic meters of natural gas a year. It will run from the coast of Russia via the Baltic Sea to Greifswald in Germany, acting as a direct link between Russian reserves and European consumers.

The five energy companies have each committed to provide financing and guarantees for up to 10 percent of the total cost of the project, which is currently estimated to be €9.5 billion.

Each company will provide a long-term funding facility of €285 million expected to be drawn down in 2017. In addition, funds of up to €665 million will be provided to cover a combination of short and long-term funding and guarantees.

The drawdown of the €665 million fund will depend on future decisions by Nord Stream 2 AG in respect of the overall financing of the project.

© Worldofchemicals News 

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