25 Apr Gazprom partners to finance half of Nord Stream 2 pipeline
A host of Gazprom’s (LSE:GAZP) Western partners, including Uniper, Wintershall, Shell, OMV and Engie, have agreed to provide half of the financing for the €9.5 billion Nord Stream 2 pipeline.
At a signing ceremony in Paris, the assorted energy firms agreed to each front 10% of the cost of the project, or up to €950 million each.
Gazprom will finance the remaining 50% of the project’s cost, remaining as the sole shareholder in the underwater pipeline.
The 55 billion cubic metre pipeline will carry Russian gas under the Baltic Sea and into Northern Europe over a total distance of 750 miles, and is due to start operating in 2019.
Gazprom chief executive Alexei Miller said: “It’s a breakthrough. It’s a firm confirmation of foreign participation in the project and an important financial basis for the project to be completed.”
However, the project is yet to receive final approval from the European Commission, who remain politically opposed to the pipeline, arguing it does not comply with EU gas market liberalisation rules.