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    Merkel Pitches for Nord Stream

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Summary

German Chancellor Angela Merkel said that the Nord Stream gas pipeline has found, "solutions that give Poland major security."Polish politicians may...

by: J. Verheyden

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Nord Stream Pipeline, Natural Gas & LNG News, News By Country, Pipelines

Merkel Pitches for Nord Stream

German Chancellor Angela Merkel said that the Nord Stream gas pipeline has found, "solutions that give Poland major security."

Polish politicians may have different view; that of Merkel attempting to further the economic interests of German companies.

Nord Stream consists of two 1,224 kilometre natural gas pipelines with an overall annual capacity of 55 billion cubic metres (bcm), that will  deliver natural gas from Russia to Germany under the Baltic Sea, bypassing traditional transit countries, including Poland and Ukraine. Pipeline one with a designed annual capacity of 27 bcm, will be ready for commercial operation on schedule by October.

Nord Stream is led by Russia's Gazprom with prominent German stakeholders, E.ON Ruhrgas and BASF/Wintershall.

Germany and Poland have had on-going disagreements relating to Nord Stream as Poland has set off on plans to attempt to increase its energy security.

Germany only recently dropped its objections to Poland's planned liquefied natural gas terminal at the port of Świnoujście on the western Baltic Sea coast. The terminal would have a capacity of 5 billion cubic meters of gas per year and could satisfy up to 30 percent of Poland's gas needs.

Germany had called for a re-evaluation of permits and for Poland to carry out an environmental assessment study under the Espoo Convention, a U.N. treaty that handles cross-border environmental concerns. Apparently the German government wasn't satisfied with the environmental impact analysis conducted by Gaz-System, Poland's state-owned gas grid operator.

Poland cried foul and many on that side speculated that the Germany moves were intended to impede the Swinoujscie terminal as it would directly compete with Nord Stream, which intends to sell gas to Poland.

Germany also opposed to European Union financing of the terminal. The EU has already pledged 80 million Euros for the construction at Świnoujście.

Poland was opposed to Nord Stream and German opposition to Świnoujście was thought to be payback for resulting delays in that project.

At a ceremony held  to lay the cornerstone for the future liquefied natural gas terminal, Polish Prime Minister Donald Tusk spoke of the nation moving towards greater energy independence.

However, Polish politicians are still concerned that Nord Stream may attempt to undermine the Swinoujscie terminal.

As Nord Stream is floating at sea as opposed to laid on the seabed, the pipeline reduces the water depth leading to the terminal and could  hinder some ships from unloading.

"Let's wait and see if that's actually the case," said Merkel.

If it does, then Merkel said she was confident that the agreements struck between the consortium and the adjoining states spelled out what measures would need to be taken so that access to the harbor and the terminal is guaranteed.

Then again, Nord Stream does have gas available to supply to the Poles.

Source: UPI