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Contact

Nord Stream AG

Graufenauweg 2, 6304 Zug, Switzerland

Tel: +41 41 766 91 91
Fax: +41 41 766 91 92

www.nord-stream.com

Jens M├╝ller, Deputy Communications Director

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Nord Stream AG

Nord Stream AG, based in Zug, Switzerland, is an international consortium of five major companies established in 2005 for the planning, construction and subsequent operation of two 1,224-kilometre natural gas pipelines through the Baltic Sea.


Our Structure

The five shareholders of the Nord Stream consortium are OAO Gazprom, Wintershall Holding GmbH (a BASF subsidiary), E.ON Ruhrgas AG, N.V. Nederlandse Gasunie and GDF SUEZ. The majority shareholder OAO Gazprom holds a 51 percent stake in the pipeline project. Leading German energy companies Wintershall Holding GmbH and E.ON Ruhrgas AG hold 15.5 percent each, and the Dutch natural gas infrastructure company N.V. Nederlandse Gasunie, along with the leading French energy provider GDF SUEZ, each hold a 9 percent stake. The combined experience of these companies ensures the best technology, safety and corporate governance for the Nord Stream project, which aims to provide a secure energy supply for Europe.

Total investment in the offshore pipeline is 7.4 billion euros. This financing comes partly from Nord Stream's shareholders, who provide 30 percent of the project costs through equity contributions proportionate to their shares in the joint venture. Some 70 percent is financed externally, by means of project financing from banks and export credit agencies. The financing was secured in two phases. Phase I financing of 3.9 billion euros was completed in March 2010, while project financing for Phase II, amounting to 2.5 billion euros, was secured in March 2011.


Connecting the EU and Russia

The Nord Stream Pipeline through the Baltic Sea is the most direct connection between the vast gas reserves in Russia and energy markets in the European Union. Years of studies have brought Nord Stream to the conclusion that the offshore pipeline project represents one of the safest, most economical, and most environmentally friendly ways to increase gas supplies to Europe. In fact, in 2006 the European Parliament and Council designated the Nord Stream Pipeline as being of "European interest". This status is given to projects that strengthen markets and reinforce security of supply.

Building the pipelines is a major feat of engineering. Because they pass through the waters of five countries, and could affect others, an extensive permitting and consultation process took place. An important part of this process focused on the environment and the procedures developed to investigate and mitigate all potential impacts. All permits to begin construction were received by February 2010, and construction of Line 1 began in April 2010, and was completed in June 2011. Gas transport through Line 1 began in November 2011. It has the capacity to deliver up to 27.5 billion cubic metres (bcm) of gas a year. Construction of Line 2 is progressing on schedule. Line 2 will be completed in the third quarter of 2012 and will be transporting gas by the fourth quarter of 2012.

When fully operational in 2012, the twin pipelines will have the capacity to transport a combined total of about 55 bcm of gas a year - that's enough to satisfy the energy demand of more than 26 million European households. Nord Stream has designed the pipelines to operate for at least 50 years.

The Nord Stream twin pipeline system through the Baltic Sea runs from Vyborg, Russia to Lubmin near Greifswald, Germany. The pipelines are built and operated by Nord Stream AG.

The route of the pipelines crosses the Exclusive Economic Zones of Russia, Finland, Sweden, Denmark and Germany, as well as the territorial waters of Russia, Denmark, and Germany.

Reliable Gas Sources

One of the gas sources for the Nord Stream Pipeline is the Yuzhno-Russkoye field. The Yuzhno-Russkoye gas condensate field, located in the Krasnoselkupsky region of the Yamal-Nenets in Western Siberia, Russia, covers about 1,100 square kilometres of gas productive area and is the biggest natural gas field developed in Russia to date. Proven recoverable gas reserves of more than 600 billion cubic meters of natural gas make Yuzhno-Russkoye a reliable provider for Europe's gas supply. The gas field is developed by Severneftegazprom, a joint venture project between Gazprom, E.ON Ruhrgas and Wintershall. This is another example of the excellent cooperation between our shareholders, western European companies, and Russia.


Infrastructure for Secure Gas Supply

A 917-kilometre onshore pipeline in Russian territory is being built by Gazprom to connect Nord Stream to the Russian gas transmission system. Two onshore connections from Greifswald to the south and west of Germany, with a total length of more than 900 kilometres, built by WINGAS and E.ON Ruhrgas, will connect the pipeline with the European gas transmission system.

The Nord Stream pipeline system will transport gas to the receiving terminal in Lubmin, Germany, where it can be transported onwards to Belgium, Denmark, France, the Netherlands, the UK, and other countries.