Denmark Clears Nord Stream 2: Update 2
(Adds comments from German gas group Zukunft Erdgas)
Denmark has finally issued permits for the construction of Nord Stream 2 through its exclusive economic zone, the Danish Energy Agency (DEA) said on October 30, paving the way for Russia to complete the gas pipeline.
The Nord Stream 2 operating company, a subsidiary of Russia's Gazprom, already collected necessary permits from all other countries along the pipeline's route more than a year ago. More than 2,100 km of Nord Stream 2's 2,400 km of pipes have already been laid, Nord Stream 2 said in its own statement confirming the Danish approval.
Nord Stream 2 filed applications for three separate routes through Denmark’s waters – the first two years ago. The application that has been approved will see the pipeline run for 147 km southeast of Bornholm in the Baltic Sea, the DEA said. That is the shorter of the two available routes.
“We are pleased to have obtained Denmark’s consent to construct the Nord Stream 2 Pipeline through the Danish continental shelf area in the Baltic Sea south-east of Bornholm,” Nord Steam 2's permitting manager for Denmark, Samira Kiefer Andersson, commented. “We will continue the constructive cooperation with Danish authorities to complete the construction of the pipeline.”
Nord Stream 2 will pump up to 55bn m3/yr of gas to Germany and other European markets at full capacity. It is due to start up by the end of the year, but Denmark's delay in issuing a permit has cast doubt on whether this deadline will be met.
“At the moment we can't give details regarding the schedule,” a representative of Nord Stream 2 told NGW. “Nord Stream 2 is working toward the safe and compliant completion of the project in the coming months.” The spokesman also declined to comment on how quickly Nord Stream 2 would ramp up to its nameplate capacity.
Commenting on the Danish decision, German gas industry group Zukunft Erdgas said it was "overdue" but "to be welcomed." The German coalition government last month passed a law that underlined the importance of gas import infrastructure for European and German energy supply. CEO Timm Kehler said: "Germany, as an important transit country and hub for gas supply in Europe, will play a key role in diversifying supply routes and gas supply sources for its European neighbours. Accordingly, new import routes such as Nord Stream 2 and LNG terminals are gaining in importance," Kehler said, referring to the country's exit from coal in the power sector and the switch to gas from fuel oil in the heating sector.