Nord Stream problems in Germany to be solved soon

A small German town stands in the way of Nord Stream. Due to its residents’ lawsuit, the construction of one of the pipeline branches has been suspended. Experts call for abstaining from panic and forecast an expedient solution for this problem.

The decision to suspend the construction of the NEL pipeline which is to connect Nord Stream to the German gas supply systems was taken by a Luneburg court. 18 residents of the town of Winsen complained that the construction work was carried out dangerously close to their houses. The German media report that the consortium responsible for laying that pipeline leg is looking for alternative locations. Russian experts are not worried about the situation. The construction of other NEL segments continues, which means that the route remains unchanged. The conflict with the residents of the German town will soon be settled, says the director of the National Energy Security Foundation Konstantin Simonov.

“Europeans respect the environment and private property. Any infrastructural facilities on the EU territory have to be submitted for endorsement and should meet strict requirements. It is possible that the local residents will insist on relocating the pipeline but it is more likely that they will be paid a compensation and this will be it.”

Experts say that the NEL pipeline has more serious problems than the Luneburg court decision. This branch has not yet been recognized by the EU as the key project for natural gas supplies. This means that the risk of applying  the EU Third Energy Package requirements to the pipeline still remains. These requirements stipulate that one company or consortium cannot be a gas supplier and simultaneously the owner of the whole infrastructure. Consequently, the owners and builders of the pipeline will have to involve a third party for sales and to delegate part of the authorities. The Russian Gazprom company which is laying the pipeline and its European partners are flatly against this outcome, Konstantin Simonov says.

Recall that the Nord Stream gas pipeline is to connect Russia and Germany. From there Russian gas will go to Denmark, Holland, Belgium France and the UK. The total length of the pipeline will be over 1,200km. It will be put in operation in the autumn of 2011 and European consumers will receive their first supplies of fuel early in 2012. It is expected that after the project is launched the cost of gas transportation from Russia to the EU will considerably drop, as there will be no need for mediators.

By Anastasiya Pershkina

The Voice of Russia, 6 Jule, 2011