Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Pipe laying for Nord Stream 2 restarts in Danish waters

Published 02/06/2021, 01:39 PM
Updated 02/06/2021, 01:40 PM
© Reuters. FILE PHOTO: A specialist works onboard the Allseas' deep sea pipe laying ship Solitaire to prepare a pipe for Nord Stream 2 pipeline in the Baltic Sea

By Vladimir Soldatkin

MOSCOW (Reuters) - The consortium behind the Russia-led Nord Stream 2 natural gas pipeline has resumed laying pipes in the waters of Denmark, it said on Saturday, despite mounting pressure on the project from Washington.

Construction of the link, which would double the capacity of the existing Nord Stream pipeline to 110 billion cubic metres of gas per year, was suspended in December 2019 due to the threat of sanctions from Washington.

However the German government has stood by the project and late in December a vessel called the Fortuna, which was subsequently put under sanctions by Washington, laid a 2.6 km (1.6 mile) portion of the pipeline in German waters.

Construction of the pipeline is mostly complete but around 120 km is left to be laid in Danish waters as well as 30 km in German waters, before it makes landfall at the northern German coastal town of Lubmin, near Greifswald.

The United States has long said the pipeline will increase Russian leverage over Europe and will bypass Ukraine, depriving Kyiv of lucrative transit fees. The United States is also keen to sell its sea-borne liquefied natural gas to European countries.

U.S. President Joe Biden has said he believes Nord Stream 2 is a "bad deal for Europe".

The consortium said in emailed comments on Saturday that the latest pipe-laying activities by the Fortuna followed the successful completion of sea trials, adding: "All works are performed in line with the relevant permits. We will provide further information about the construction works and further planning in due time."

Given its major economic and strategic significance, Nord Stream 2 has been increasingly in focus following the jailing of Kremlin critic Alexei Navalny and Friday's announcement of the expulsion of European diplomats from Russia.

On Friday, German Chancellor Angela Merkel said Berlin was sticking with its support for the pipeline. Germany's position is that it is a commercial project.

© Reuters. FILE PHOTO: A specialist works onboard the Allseas' deep sea pipe laying ship Solitaire to prepare a pipe for Nord Stream 2 pipeline in the Baltic Sea

Western partners of Russia's Gazprom (MCX:GAZP) in the project are Germany's Uniper and the Wintershall Dea unit of BASF, Anglo-Dutch Shell (LON:RDSa), Austria's OMV and French-based Engie.

Latest comments

We have a cream puff prez
oh well bestvrealize that the US lost huge ground in world *****under the trump . as he turned the US into a untrustworthy ally ..and an even bigger joke
Long live Putin, viva Gazprom! Biden and USA can't do anything against NS2.
It was the Bidens that helped resume it...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.