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Gazprom and partners on Nord Stream-2 will choose new financing model by end of year

All the partners have confirmed their participation and there are no changes in the schedule

TULA, August 22. /TASS/. Russian gas giant Gazprom and its partners on the Nord Stream-2 project will choose a new financing model by the end of the year, Gazprom CEO Alexei Miller told reporters.

All the partners have confirmed their participation and there are no changes in the schedule, he added.

"As for the implementation schedule, the project has not changed it, we are continuing to work under the schedule that was approved earlier. The operator of the project will continue working. At the same time it is only Gazprom which is involved by 100% but we are holding a dialogue with our European partners, with every company, about the search for new models of financing of the project and its implementation," Miller said.

According to him, absolutely all the participants have confirmed their intention to implement the project together with Gazprom.

"Therefore, we will continue to work with our partners, well-known European companies that initially expressed interest in the project," head of Gazprom said.

Speaking about the ways of the project’s financing, Miller said:

"We are considering several options, several models. Within a few months - I will not call a more accurate term, although we set certain terms - I think that before the end of the year we will definitely develop a new model of the project," Miller said.

Earlier Gazprom and its European partners (Engie, OMV, Shell, Uniper and Wintershall) submitted their request to create a joint venture for the Nord Stream-2 to German and Polish anti-monopoly regulators.

Germany approved the request but the Polish regulator voiced some objections. In particular, it was noted that the establishment of the joint venture may lead to restriction of competition. Later, the companies withdrew the application filed to the Polish Office.

Nord Stream 2 is the construction project of the natural gas pipeline with the capacity of 55 bln cubic meters from Russia to Germany across the Baltic Sea. The route and the entry point to the German gas transport system in Greifswald are intended to be the same as for the first Nord Stream gas pipeline launched in 2011. It is planned that the Nord Stream-2 will be put into operation in late 2019.

Capital expenditures are estimated at 8 bln euros while the project’s total cost (together with attraction of project financing) is 9.9 bln euros.

The project will be implemented by the joint project company New European Pipeline AG. In this company Gazprom" will hold 51%, E.ON, Shell, OMV and BASF/Wintershall - 10% each, Engie - 9%.

In July, the operator of Nord Stream-2 pipeline chose the Dutch Wasco Coatings Europe BV as the contractor for the concrete weight coating and storing of more than 200,000 pipes for the construction of the pipeline.

Pipe deliveries to concrete weight coating facilities are planned to start in September 2016, with the concrete weight coating process starting at the beginning of 2017.