Gas Flows through Nord Stream Line 1
8 november 2011
The first of Nord Stream's twin pipelines went into operation today. Heads of government and other political and business leaders celebrated the flow of gas from Nord Stream into the European gas grid at an event held at Lubmin, Germany, where the pipelines reach land.
German Federal Chancellor Angela Merkel, Russian President Dmitry Medvedev, the Prime Ministers of France François Fillon, the Netherlands Mark Rutte, and EU Energy Commissioner Günther Oettinger formally inaugurated the transport of gas through Line 1 with a symbolic act. They "opened the tap" to let the gas flow at the event, which was attended by 500 guests and about 200 journalists.
The heads of Nord Stream's five shareholders Gazprom, BASF/Wintershall, E.ON Ruhrgas, Nederlandse Gasunie and GDF SUEZ also attended the event, which celebrates the fixed link for at least 50 years between Europe's gas markets and Russia's vast gas reserves. The formal ceremony was held next to the site in Lubmin where the Nord Stream Pipeline is connected to the European gas grid, specifically to the onshore pipelines OPAL and NEL.
Praise from Top Politicians
In her speech inagurating the Nord Stream Pipeline on November 8, Chancellor Angela Merkel said: "Nord Stream is the biggest energy infrastructure project of our time."
Russian President Dmitry Medvedev also praised the milestone: "Today marks a remarkable, long-awaited event. We are launching the first pipeline of Nord Stream, which opens a new page in our country's cooperation with the European Union. For the first time, Russian gas will reach countries of the EU directly."
Dutch Prime Minister Mark Rutte said the Nord Stream Pipeline came on stream at exactly the right time. He described its importance as a secure supply of gas in the coming years for the growing region of western Europe, and European Union Energy Commissioner Guenther Oettinger described the Nord Stream Pipeline as an important step in the development of a pan-European transport grid.
"Nord Stream has provided Russia's Gazprom with a safe, modern and efficient additional route through which to supply gas to its partners and customers in the EU, in addition to the existing transit routes through Ukraine and Belarus," said Matthias Warnig, Nord Stream Managing Director. Nord Stream is a commercial project based on long-term contracts by Gazprom Export to supply customers in Germany, Denmark, the UK, the Netherlands, Belgium, France, the Czech Republic and other countries.
Long-Term Supply of Energy
Nord Stream is providing this key energy infrastructure on schedule and on budget, at no cost to European taxpayers: the consortium's five shareholders are shouldering 30 percent of the 7.4 billion euro investment, with commercial loans from a group of almost 30 international banks covering 70 percent.
"This new fixed link between Russia and the EU is one of the long-term solutions for the EU's energy security," Mr Warnig added. All experts agree that Europe faces a long-term shortfall in gas supplies: the International Energy Agency sees natural gas becoming the most important fuel in the EU energy mix by 2030, but domestic gas production is declining. "To help meet this long-term increase in demand for gas imports, our shareholders have committed to this long-term solution, creating a fixed link for at least 50 years between European markets and Russia's massive gas reserves."
