Nord Stream 2 financing deals signed

Nord Stream 2 financing deals signed
Image courtesy of Nord Stream 2

Five European energy companies, Shell, Engie, OMV, Uniper and Wintershall signed financing agreements with Nord Stream 2, the company responsible for planning, construction and future operation of the Nord Stream 2 pipeline.

The 1,220-kilometer pipeline will be able to transport a total capacity of 55 billion cubic meters of natural gas a year. It will run from the coast of Russia via the Baltic Sea to Greifswald in Germany, acting as a direct link between Russian reserves and European consumers.

Construction work will begin in 2018 and will be completed by the end of 2019, a joint statement, by Gazprom as the only shareholder of Nord Stream 2 and the five energy companies reads.

The five energy companies have each committed to provide financing and guarantees for up to 10 percent of the total cost of the project, which is currently estimated to be €9.5 billion (US$10.3 billion).

Each company will provide a long-term funding facility of €285 million expected to be drawn down in 2017. In addition, funds of up to €665 million will be provided to cover a combination of short and long-term funding and guarantees.

The draw down of the 665 million fund will depend on future decisions by Nord Stream 2 in respect of the overall financing of the project.

1 EUR = 1.08864 USD

Share this article

Follow LNG World News

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

LNG Bunkering Mediterrean

The only 3-day course offering theoretical and practical training on LNG bunkering designed by the Mediterranean market leaders.   

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

FLNG World Congress 2019

2019 FLNG World Congress will bring together stakeholders across the floating liquefaction value…

read more >