Nord Stream Faces Problems in Germany

The second phase of the Nord Stream project is currently facing teething issues in Germany, with linking pipeline the NEL pipeline delayed and a challenge to Nord Stream's route issued by the German Ministry of Defence.

RBC Daily today reports that head of the North European Pipeline (NEL) gas link, a pipeline which will connect to the second phase of the Nord Stream project, has been delayed by up to one year. The pipeline has previously been delayed, with a route expected to have been finalised in autumn of last year.

Hans-Georg Egelkamp said that the link will be built no sooner than 2013 and will be longer and more costly than originally expected. He said a cost could not yet be put on the link but estimated that it would be a "double-digit million figure", RBC Daily quoted him has saying.

He said the pipeline was routed to pass through a large area of water making the construction and laying of the pipe more technically difficult.

Yesterday also saw the challenging by the German Ministry of Defence of a permit granted to the Nord Stream consortium by the Stralsund Mining Department in Germany.

A lawyer for the Ministry said that they did not want the construction of the operation halted but was concerned that the planning permit allowed the route to travel over a firing range operated by the Ministry.

"We do not want to stop the operation of the pipeline," Ria Novosti reports Carsten Berthke as saying. "The department which has issued the permit must ensure the protection of the pipe and unrestricted possibilities for the training of Bundeswehr’s marine and air forces."

German Wintershall Holding and E.ON Ruhrgas are two of the stakeholders in the Nord Stream project with a 15.5 per cent stake each. Gazprom holds the majority share at 51 per cent; GDF Suez and Gasunie hold the last two stakes at 9 per cent each.