Nord Stream: Members To Pay One-third of Extra Costs
by AFX News Limited
March 19, 2008
Nord Stream, the consortium building a
Baltic Sea gas pipeline between Germany and Russia, said one-third of any extra
costs associated with the project will be injected by the consortium member
companies according to their equity stake in the venture.
Russia's OAO Gazprom owns a 51-percent stake in the consortium with Germany's
BASF SE and E.ON AG each holding 24.5 percent.
Nord Stream managing director Matthias Warnig told Wirtschafts-Woche, in an
interview to be published Saturday, that the remainder of any additional costs
will be financed through loans.
Initially, investment costs for the pipeline were put at 4.5 billion eur. Warnig
previously said costs will significantly exceed 5 billion eur due to roaring steel
Warnig said the consortium is currently assessing costs and is working on
the financing. He said talks on the financing are under way with Societe
Generale, ABN Amro and Dresdner Kleinwort.
He said public financing of the project is not an option for Nord Stream.
Copyright 2008 AFX News Limited. All Rights Reserved.
Nord Stream Pipeline
Nord Stream AG
Vyborg, Russia to Greifswald, Germany Russian Federation