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Nord Stream Submits Applications to Swedish Government

Dec. 21, 2007 | Zug | Nord Stream AG today submitted application documents to the Swedish government for its planned offshore pipeline system within the Swedish Exclusive Economic Zone (EEZ). The company has handed in an application for the construction of the pipelines, including a technical description in accordance with the Swedish Continental Shelf Act. Nord Stream also filed an application for the service platform, which includes a technical description and an Environmental Impact Assessment (EIA) report, in accordance with the Swedish EEZ Act.

Furthermore, Nord Stream has also submitted an environmental study that describes the potential impact of the pipelines on the environment.

Nord Stream views the submission of the applications as a starting point for an intensive dialogue with the Swedish government regarding the permission procedure, as well as the scope and method of the environmental studies. Based on the application documents, Nord Stream will discuss all relevant factual issues with authorities, organisations and citizens in an open and transparent manner, while fulfilling all the requirements of Swedish legislation to obtain the required permits to construct the important infrastructure project.

Timeline fits Europe’s import need

The project timeline contained in these applications foresees pipe-laying works on the first line commencing during the summer of 2009, and to be completed in 2010. The first gas to be delivered by this commercial project is scheduled for the spring of 2011, after completion of the test phase. Nord Stream is thereby sticking to time plans which provide for and take into account long delivery times for pipeline materials, intensive dialogue during the permitting process, as well as the comprehensive safety tests needed.

Nord Stream is confident that the whole pipeline system will be implemented in a sound manner in line with international standards for environment, health and safety. Some studies are still on-going and their results will be submitted early in 2008. Offshore pipelines represent a well-established, proven and environmentally-friendly technology that has been in use for about 30 years. This is especially the case in the North Sea, where there are over 5,000 kilometres of offshore pipelines and hundreds of platforms.

Project of European interest to secure energy supplies

The Nord Stream offshore pipeline has been declared a project of European interest, according to the Guidelines for Trans-European Energy Networks (TEN-E) passed by the European Parliament and the Council of the European Union in 2006. It will significantly contribute to the security of Europe’s energy supplies and, by providing the cleanest fossil fuel to replace oil and coal in countries like Denmark, France, Germany, the Netherlands and the UK, to meeting emissions reduction targets.

Public comments taken into account

Nord Stream has received comments from 29 Swedish authorities, organisations and citizens within the framework of the international consultations procedure that started in November 2006 in accordance with the Espoo Convention. The company has carefully analysed all issues raised in Sweden, as well as those from all other concerned countries. Safety issues, the impact on marine flora and fauna, economic impact, construction methods and materials, route alternatives and munitions were the most important issues mentioned in comments received. In accordance with Swedish legislation, some of these issues will be discussed within the official application procedure. Other topics will be addressed through open dialogue with the general public.

Installation corridor clear of munitions

Studies and seabed surveys conducted during the previous years led Nord Stream to conclude that it was necessary to undertake one of the most detailed munitions surveys ever. This survey was conducted by the Swedish company Marin Mätteknik AB during 2007. All possible targets are presently being verified through visual inspection. Current results show that the installation corridor is clear of munitions. Further detailed surveys of the lay barge anchor corridor will be conducted during 2008.

Nord Stream will present a comprehensive risk assessment report in accordance with highest international standards to address safety management for pipeline installation and long term pipeline integrity. Potential risks and the respective measures taken to mitigate them will be defined in the report.

Route optimised after international consultations

Based on many years of preparation and surveys, Nord Stream assessed the proposed route to be the most feasible in terms of environmental, technical and economical aspects, compared to other offshore alternatives in the Baltic Sea.

Following the analysis of the comments received, additional studies were launched in April 2007 to investigate areas where the route might be optimised to minimise environmental impacts. In August 2007, Nord Stream decided to re-route the pipeline to run north – rather than south – of the Danish island of Bornholm. Furthermore, Nord Stream followed the recommendation of the Swedish authorities, and reassessed available information in order to study the possibility of an alternative route further away form the two nature protection areas of Hoburgs Bank and Norra Midsjö Bank near the island of Gotland. The Nord Stream pipelines will not cross the nature protection areas, but pass at a safe distance. However, careful assessments of all interests in the areas southeast of Gotland (e.g. nature protection, maritime traffic, existing telecom cables, dumped chemical munitions) have been conducted together along with detailed studies of the possible spreading of sediments from pipeline construction. The results of these studies will now be discussed with the Swedish Nature Protection Authorities in order to ensure a common understanding of the optimal location of the pipeline corridors and to avoid any significant disturbance of the important nature areas.

Progress in international consultations

In December 2007, Nord Stream will also submit a draft of the transboundary EIA report, outlining its methods to the authorities involved in the international consultations, in line with international law (Espoo Convention). In this case, early discussion of procedures and content will ensure that all important environmental aspects are taken into account.

The finalised transboundary EIA report will be published in April 2008. The process of submitting EIA reports within national application procedures in Russia, Finland, Denmark and Germany will continue during the first half of next year and reflect the particular legislation of each country. This will enable Nord Stream to submit applications for construction permits in line with existing plans.

Nord Stream supports the authorities’ wish for simultaneous consultations on a national and international level so as to ensure co-ordinated dialogue and public scrutiny in continuance of the already established dialogue with all the countries around the Baltic Sea. In these discussions, Nord Stream strives to work out solutions with all involved parties to make its pipeline project a benchmark for environmental and safety standards, while also contributing fundamentally to Europe’s security of energy supply.

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