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UPDATE 2-Denmark clears major hurdle for Russia's Nord Stream 2 gas pipeline

Wed, 30th Oct 2019 12:57

* Denmark approves Nord Stream 2 pipe in Danish waters

* Pipeline has divided the EU and drawn U.S. anger

* Ukraine-Russia gas transit deal ending soon

* Nord Stream says project to be completed "in the coming
months"
(Adds Nord Stream 2 quote, background)

By Stine Jacobsen

COPENHAGEN, Oct 30 (Reuters) - Denmark on Wednesday gave the
go-ahead to the Nord Stream 2 gas pipeline, removing the last
major hurdle to completion of the Russian-led project that has
divided opinion in the European Union.

The Danish permit was the last needed for the 1,230-km-long
(765-mile) pipeline from Russia to Germany. The United States
and several eastern European, Nordic and Baltic countries have
expressed concern that the project, led by state-owned Gazprom
, will increase Europe's reliance on Russian gas.

U.S. President Donald Trump has been a particularly vocal
critic, warning the pipeline could turn Germany into a "hostage
of Russia."

According to its initial schedule, Nordstream 2 should have
been operational by the end of this year when a agreement on the
transit of Russian gas via Ukraine, the main route for exports
to Europe, expires.

The EU has urged Moscow and Kiev to reach a new agreement
before Dec. 31 but there are a number of obstacles including a
political row between Kiev and Moscow, a pro-Russian insurgency
in eastern Ukraine and litigation between Russian gas supplier
Gazprom and Ukraine energy company Naftogaz.

Germany has also said that Nord Stream 2 will only be
launched if Gazprom also continues to transit gas through
Ukraine.

A spokesman said the Nord Stream 2 consortium, which
includes Germany's Uniper and Wintershall DEA,
Anglo-Dutch Shell, Austria's OMV and France's
Engie, would work to complete the project "in the
coming months," but declined to specify a timeline.

More than 87% of Nord Stream 2 has been built but
applications with Danish authorities to lay pipes under Danish
waters have been pending since April 2017.

"We are pleased to have obtained Denmark's consent to
construct the Nord Stream 2 Pipeline through the Danish
continental shelf area," said Nord Stream 2's permitting manager
in Denmark, Samira Kiefer Andersson, in a statement.

She said that preparatory work and the subsequent pipelay
would start in coming weeks but it was not immediately clear how
long it would take to complete the stretch.

The Danish Energy Agency said in a statement that it had
granted a permit to Nord Stream 2 to construct a 147-km section
of the twin pipeline southeast of the Danish island Bornholm in
the Baltic Sea.

Nord Stream 2 will have to wait another month before the
permit can be used, according to Danish law which gives parties
the option to lodge complaints for up to four weeks after the
decision, the DEA said.

(Reporting by Stine Jacobsen, additional reporting by Vladimir
Soldatkin, editing by Louise Heavens, Deepa Babington, Kirsten
Donovan)

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