Gazprom will lose $740 million because of Danish position

The delay in launching Nord Stream 2 can be up to 8 months and bring additional losses of $740 million due to the lack of the necessary permits from Denmark. It is reported by Reuters, referring to a document that is at the disposal of the agency.

To date, Gazprom has laid 70% of Nord Stream 2, but since April 2017 it has not received permission from the Danish authorities to lay a pipeline section in Denmark, which may delay the launch of the pipeline.

Two lines of the gas pipeline are simultaneously being built in the waters of Russia, Finland, Sweden, Denmark and Germany. Denmark is the only country that has not yet issued a permit for laying.

The Danish authorities received applications from the operator of the Nord Stream 2 AG project for the construction of a gas pipeline in two directions, the first request to Copenhagen came more than two years ago.

In March 2019, the Danish Energy Agency requested an additional environmental assessment for the third option for laying a gas pipeline.

In response, the project operator stated that the new requirement under option three was “a deliberate attempt to delay completion of the project.”

In April Nord Stream 2 reported that a new requirement of the Danish authorities had already resulted in costs of €100 million.

The planned budget of the project is €9.5 billion. Russian Gazprom finances half of the expenses, the second half is provided by foreign companies: German Uniper and BASF, Anglo-Dutch Shell, Austrian OMV, French Engie.


Tags: Gazprom, gas, Naftogaz, contracts, Nord Stream 2, legislation, EU, gas production, gas transit, sanctions, foreign affairs, gas exports, export

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