Nord Stream to Look at Expansion

The Nord Stream pipeline consortium said Friday it is considering further expanding the natural gas pipeline that ships Russian gas to western Europe via the Baltic Sea.

The consortium said its shareholders have asked the company to conduct "a feasibility study" intended to assist in evaluating possible solutions to meet the need for the EU to "increase its imports of natural gas over the coming decades and to secure gas deliveries under existing contracts."

"Over the next eight months, Nord Stream will make an assessment of various criteria of up to two potential additional pipelines, including technical solutions, route alternatives, environment and financing," the company said.

The consortium said that the rationale for considering additional infrastructure is twofold: further diversification of transportation routes is an integral part of enhanced security of supply, and the EU's gas import requirements will continue to grow in the long term due to the economic and environmental advantages of natural gas and the decline of indigenous production in the North Sea.

The first of Nord Stream's two parallel pipelines became operational in November 2011. Each line is approximately 1,220 kilometres long and has a transport capacity of 27.5 bcm per year. Line 2 has already been laid and is undergoing pre-commissioning. When it goes on stream in late 2012, both lines together will provide a capacity of 55 bcm per year.

Nord Stream's shareholders are: OAO Gazprom with a 51 per cent stake in the joint venture, BASF SE/Wintershall Holding GmbH and E.ON Ruhrgas AG each with 15.5 per cent, and N.V. Nederlandse Gasunie and GDF SUEZ S.A. each with 9 per cent stakes.

Related Reading About Nord Stream HERE