Gazprom to receive European funding for second Nord Stream gas pipeline

Gazprom’s plans to lay a second gas pipeline along the bed of the Baltic Sea came one step closer to fruition yesterday when five European companies agreed to finance 50% of the Nord Stream 2 project to the tune of € 4.75 bn. Under the terms of the agreement, Engie (France)  OMV (Austria), Uniper and Wintershall (both Germany) and British-Dutch Royal Dutch Shell will each provide € 950m with Gazprom itself putting up the other 50%. The Russian gas giant will remain the sole shareholder after a previous plan to fund the pipeline – which is set to run from Russia to Greifswald in north-east Germany  – by means of  a joint venture between Gazprom and the five European energy companies was blocked by Poland.
The project has also been consistently resisted by EU officials amid fears  in Brussels that it will strengthen Russia’s dominance of the European gas market and help Gazprom reduce its reliance on exporting gas via Ukraine. Gazprom is the EU’s largest gas supplier and, with an annual capacity of 55 bcm, Nord Stream 2 will double its European export potential.

Source: Gazeta