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Nord Stream 2 pipeline edges closer to Danish deadlock

Mon, 16th Sep 2019 12:59

By Stine Jacobsen

IN THE BALTIC SEA, Sweden, Sept 16 (Reuters) - With each
24-tonne steel pipe laid on the seabed of the Baltic Sea, the
vessel Solitaire is edging closer to what could be a costly
hold-up for the Russian-led gas pipline project which has
divided the European Union.

The crew onboard the Solitaire expect to reach Danish waters
early next month, but Denmark has yet to approve the pipeline,
which is planned to begin transporting natural gas from Russia
to Germany at the end of this year.

"We are now heading for the Danish border and then basically
waiting for the further development of the project to be
continued from the Danish border towards Germany," Captain Kenny
Houben told Reuters.

However, the Nord Stream 2 consortium controlled by
state-run Gazprom told Reuters the project remains on
track and that it remains hopeful Denmark will approve the
pipeline before the Solitaire reaches Danish waters.

"We are (progressing) according to plan and we are
absolutely on the timeline," Nord Stream 2 spokesman Ulrich
Lissek told Reuters onboard the Solitaire vessel.

He added that there were "no major risks or issues" in its
dialogue with the Danish Energy Agency (DEA), which is in charge
of issuing a permit after an environmental assessment.

Any delay of the 1,230-km twin pipeline would create
uncertainty for the firm's partners: Germany's Uniper
and Wintershall, Anglo-Dutch Shell, Austria's OMV
and France's Engie and is also key for the
future of a gas transit contract between Moscow and Kiev.

With a crew of around 400, the 397-metre Solitaire is
welding together and laying the pipeline on the seabed at a
speed of 3-4 km per day.

Nord Stream 2 has warned the pipeline could be delayed by up
to eight months and cost an extra 660 million euros ($731
million) due to hurdles in getting a Danish permit.

The Danish Energy Agency has completed public hearings and
is addressing the responses but it declined to say when a
decision would be announced.

If a permit is obtained, Nord Stream 2 will have to wait
another month before it can be used, according to Danish law,
which gives parties the possibility to complaint up to four
weeks after the decision, said the DEA.

Access to cheap Russian gas to offset declining Dutch
production takes priority for nations in northern Europe,
particularly Germany, but east European countries fear the
pipeline will make the EU a hostage to Russian gas while the
United States has been a vocal critic as well.

(Reporting by Stine Jacobsen; editing by David Evans)

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