Nord Stream Costs to Exceed 5B Euro
by AFX News Limited
January 02, 2008
Nord Stream AG, a consortium that plans to build a natural gas pipeline below the Baltic Sea, expects construction costs to amount to "significantly" more than 5 billion eur, managing director Mattias Warnig told Die Zeit.
The consortium, in which Russia's OAO Gazprom owns a 51-percent stake and
Germany's BASF AG and E.ON AG each own 24.5 percent, previously said construction
costs will rise above the initially estimated 5 billion eur, and also said it
expects gas shipments to start in spring 2011, pushing back its original 2010
Warnig said in an interview with Die Zeit to be published tomorrow the
consortium will during the coming months disclose a more precise estimate of
construction costs, after purchase contracts are signed.
Warnig defended the consortium's decision to build a submarine pipeline
instead of choosing an overland route and said the profitability of a submarine
pipeline during the first 25 years of operations is 15 percent higher.
The pipeline will connect Russia's Vyborg and the German city of Greifswald.
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Nord Stream Pipeline
Nord Stream AG
Vyborg, Russia to Greifswald, Germany Russian Federation