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Strictly as planned: the first leg of Nord Stream pipe completed

The construction of the Nord Stream gas pipeline is entering its final stage. The first leg of the gas main has been completed. Now experts are preparing for tests and set-up. This news came together with reports about more problems with the competing Nabucco project. Its cost has grown once more and the partners are facing numerous conflicts.

European consumers will begin receiving Russian gas directly, as was promised, by the end of the year. The Nord Stream company, the operator of the pipeline project, has completed laying the first leg, 1224km long, between Russian Vyborg and German Greifswald, said Vladimir Putin at a session of the Russian government:

“The work on the seabed has been done. It continued for less than 18 months with the use of the highest technology. The work was done by a large group of top-class experts from many countries of the world. As we promised, there were no environmental problems, everything was done at the highest level. The first leg will provide 27.5 billion cubic metres of gas. The second leg will be built next year and yield 55 billion. This is not exactly a window, but a window section on Europe for one of our main export items.”

Now experts are ready for tests and a start-up. This will take a few more months, after which, presumably in October, the first gas will go to Europe, the Nord Stream spokeswoman Irina Vasilieva told “The Voice of Russia”:

“Now a completely assembled pipeline leg consisting of three sections is lying on the seabed. The next step is a link-up of the three sections which will take place in two points just on the Baltic Sea bed. The first point is in the Gulf of Finland at a depth of 80m and the second is in the Swedish waters at a depth of 110m. This will be followed by more testing, cleaning and drying of the whole pipeline and preparing it for a start-up. The start-up is planned for the last quarter of this year and by the end of the year the first gas will reach Europe.”

Announcer: After launching the first leg of the Nord Stream pipeline, European consumers will be able to get 27.5 billion cubic metres of gas. In another year it is planned to complete the laying of the second leg of the pipeline, which will double its throughput. This is especially important, as many countries are planning to give up nuclear power after the recent events in Japan.

The success of Gazprom and its partners especially stands out against the background of conflicts in another pipeline project, Nabucco. Old World  officials always called it an instrument of reducing the gas dependence on Russia. However, Nabucco participants only engage in endless arguments about its cost so far. This time the estimate has grown from 8 billion euro to 12 and probably even 15 billion, which practically spells the death of this project, says Konstantin Simonov, the director of the National Energy Security Foundation:

“Even the cost of 8 billion euro spells the death of the project. Out of 6 participants who are to invest half the cost only two have enough money. Another 4 billion is to come from banks but banks are not gong to give anything. Apart from that, the project has no gas resources and, consequently, no guaranteed market. Banks refuse to finance the project in this situation. As a result, all financial juggling and deliberate understatement of the cost of the project is falling to pieces.”

Originally the construction of Nabucco was expected to begin in 2012, so that the first gas could reach Europe  in 2015. By that time Gazprom and its partners are planning to launch the South Stream gas pipeline with an estimated capacity of 63 billion cubic metres. Unlike Nabucco project participants, Gazprom meets the deadlines and fulfils its promises.

By Mamonov Roman

The Voice of Russia, May 5, 2011


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