The completion of Russia’s Nord Stream 2 gas pipeline overcame an obstacle on October. 30 as Danish authorities permitted plans for the project’s construction through its waters. The decision increases the economic and political pressure on Ukraine.
According to the Danish Energy Agency, the permission is granted to construct a section of the Nord Stream 2 natural gas pipeline on the Danish continental shelf southeast of Bornholm in the Baltic Sea.
An earlier application to construct the pipeline through Danish territorial waters was withdrawn before. Instead, the company applied for two alternative routes of greatest distance to the island. The decision allows Nord Stream a construction of 147 Kilometer pipeline southeast of Bornholm.
Nord Stream 2 is planned as a 1,225-kilometer pipeline to transport natural gas from Russia’s Ust-Luga to Germany’s Greifswald and would double the capacity of the existing Nord Stream pipeline. The project is carried out by a company called Nord Stream 2 AG, comprising of Russia’s state-owned gas producer Gazprom, which is funding half the project, as well as German companies, the Anglo-Dutch firm Shell, and the Austro-French company Engie.
The pipelines can transport 55 billion cubic meters of natural gas per year. The authorities in Russia, Finland, Sweden and Germany have already granted permits for the project.
According to Nord Stream 2 AG preparatory works, such as the installation of concrete mattresses and rock placement for the crossing of existing infrastructure, such as cables and pipelines, and the subsequent pipelay, will start in the coming weeks.
“The Danish section of the pipeline will be built with pipes currently stored in Mukran, on the German island of Rügen,” the company announced on its website. “Pipelay has been completed in Russian, Finnish and Swedish waters, and for the most part in German waters. The construction of both landfall facilities in Russia and Germany is nearing completion.” According to the company, 6 billion Euros have already been invested.
The completion of the pipeline would enable Russia to bypass Ukraine’s overland pipelines for the most part, costing the nation up to $3 billion in transit fees or 2 percent of the gross domestic product. The upcoming completion is strengthening Russia’s position in negotiations with Ukraine about Gazprom’s transit contract. The existing contract with Ukraine will expire in January 2020.
In August Ukrainian President Volodymyr Zelensky said that the Nord Stream 2 project is unacceptable and threatens all of Europe. Most European countries and the U.S. oppose the project, saying that it will increase Europes dependency on Russian gas, thus making it vulnerable to Kremlin political demands.
U.S. President Donald Trump is pressuring to half the project, threatening sanctions against the involved companies. Democratic and Republican members of the Senate Foreign Relations Committee already voted to approve legislation aimed at preventing the completion of the pipeline.
Undeterred by criticism, the German government did not change its position claiming that the construction of the pipeline is a purely economic project that is essential for the future energy supply of Germany. According to German media, Chancellor Angela Merkel stated on Monday that Russia has to negotiate a new transit contract with Ukraine before Nord Stream 2 starts to work.
Although Nord Stream 2 AG is attempting to finish the construction by the end of the year this does not necessarily mean that the pipeline could start to work immediately. Contrary to the offshore pipeline the onshore infrastructure is not ready yet. The distribution pipelines in Germany and towards Czech Republic will not be fully functional until the end of 2020.
