Financing in place for Nord Stream 2 gas pipeline

The Nord Stream 2 project led by Gazprom has taken another important step towards its implementation after Nord Stream 2 AG signed financing agreements for the gas pipeline with ENGIE, OMV, Shell, Uniper and Wintershall.

The five European energy companies have committed to providing long-term financing for 50 per cent of the total cost of the project, which is currently estimated to be €9.5 billion.

Each European company will fund up to €950 million. Gazprom is and will remain the sole shareholder of the project company, Nord Stream 2 AG.

The 1,220km Nord Stream 2 gas pipeline will have a total capacity of 55 billion cubic metres a year and will provide a direct link between Russian gas reserves and European gas consumers from the coast of Russia via the Baltic Sea to Greifswald, Germany.

Construction work will begin in 2018 and will be completed by the end of 2019.

Original source: http://www.osjonline.com/news/view,financing-in-place-for-nord-stream-2-gas-pipeline_47451.htm