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.
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