Cost of Baltic Sea gas pipeline looks to be higher than expected

print this

The cost of the planned Baltic Sea submarine gas pipeline will be higher than first thought, representatives of the Nord Stream gaspipe consortium, the constructor of the pipeline, announced in Stockholm on Monday.
      Nord Stream has previously estimated the total cost of the project at EUR five billion.
      "The price of steel alone has tripled in the past couple of year, and this is just one example of increased expenses", Nord Stream director Dirk von Ameln reported.
     
The company filed a permit application with the Swedish government just before Christmas. Sweden was chosen as the first one of all the countries within the sphere of impact of the project. Von Ameln described the application process to the media.
      "Because the Swedish authorities only start discussing the subject once the permit application is on their desk, we had to accelerate things for them. In other countries the discussion ends when the application is filed", von Ameln explained.
     
The intention is to use the pipeline to supply Western Europe with natural gas from Russia. The project has been sanctioned by the EU, but it has many objectors for example in Sweden and Estonia. In principle, Finland supports the pipeline, as long as the environment will not suffer because of it.
      The debate in Sweden centres on security policy, environmental, and economical issues – or more precisely - the lack of economic benefits for Sweden.
     
In November the Swedish Environment Minister Andreas Carlgren demanded that the pipeline be routed further away from the Swedish island of Gotland.
      According to Nord Stream this is not possible for two reasons: the pipeline would run in the main shipping lane of the Baltic Sea, and secondly the important bird areas of the Baltic coastline would become threatened.
      In Sweden and Estonia the examination of the alternative of running the pipeline on land through the Baltic States has also been demanded.
      "That is not part of our project. Our mission is to lay a submarine pipeline through the Baltic Sea", von Ameln stated.
      The company has every confidence that the pipeline will be completed on schedule and that the Swedish government will endorse the application.
      Nord Stream is a consortium of Russian, German, and Dutch energy companies. The largest owner is Russian Gazprom with its 51% holding.


Previously in HS International Edition:
  Planned Baltic Sea gas pipeline poses a political challenge to Estonia (20.9.2007)

Helsingin Sanomat