Germany: NEL Pipeline Delayed for One Year

The construction of a pipeline, which aims to connect the German gas grid to the Nord Stream pipeline, has been delayed for a year, the Dow Jones news agency has reported. The construction on the project was due to begin in autumn of this year.

The North European Pipeline (NEL) pipeline, which is under construction through a joint venture between E.ON Ruhrgas and Wingas, aims to connect Germany's gas grid system to the Nord Stream pipeline which launched last year. The €1 billion project aims to transport approximately 20 billion cubic metres of gas annually across a distance of 440 kilometres. 

However, protest action and legal disputes between German residents has caused the pipeline to be delayed, E.ON Ruhrgas has said. The consortium involved in the pipeline will now consider alternative routes, the company has said. Approval for the new route is expected to be finalised by autumn of this year.

E.ON holds a 10 per cent stake in the NEL pipeline. Wingas, a joint venture between BASF subsidiary Wintershall Holdings, which holds a 51 per cent share in the venture and Gazprom, which holds a 49 per cent stake in the project, holds an 51 per cent stake in the project. Fluxys G holds a 19 per cent stake in the project, while Gasunie holds the remaining 20 per cent stake.