Nord Stream: leakiness of the Nord Stream – 1 gas pipeline caused by physical damage

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AK&M 28 September 2022 10:34

The sharp drop in pressure recorded as a result of a gas leak on both lines of the Nord Stream – 1 gas pipeline makes it safe to assume that the leakiness of the gas pipeline is caused by physical damage. This is reported by Nord Stream AG.

The company immediately informed the relevant Coast Guard services about the incident. The locations of the two alleged damages have been determined, they are located northeast of Bornholm in the Swedish and Danish EEZ, respectively.

Currently, the Swedish and Danish maritime authorities have established a 5-mile security zone around these places (Nautical information | Danish Maritime Authority (dma.dk ).

Nord Stream AG will use all necessary resources to carry out damage assessment in cooperation with local authorities. The timing of the restoration of the gas pipeline's operability is currently impossible to estimate. The causes of the incident will be determined as a result of the investigation.

Nord Stream is an international consortium of five major European energy companies established in 2005 for the design, construction and operation of a gas pipeline consisting of two strands with a length of 1,224 km each along the bottom of the Baltic Sea.

The shareholders of Nord Stream AG are Gazprom International Projects LLC (a subsidiary Gazprom PJSC), Wintershall Dea AG (formerly Wintershall Holding GmbH), PEG Infrastruktur AG (E.ON), N.V. Nederlandse Gasunie and ENGIE. Gazprom International Projects owns 51% of the project shares. German companies Wintershall Dea AG and PEGI/E.ON owns 15.5% each. N.V. Nederlandse Gasunie and ENGIE own 9% each.

The total amount of investments in Nord Stream is 7.4 billion euros. The shareholders provided 30% of the project budget in proportion to their shares in the consortium. The remaining 70% were attracted from external sources - banks and export credit agencies - in the form of project financing.