Brussels, 08/02/2007 (Agence Europe) - The Nord Stream pipeline project, which would see Russian gas piped to Germany under the Baltic Sea, is looking for EU financial support in the form of a loan from the European Investment Bank (EIB). Thus it was that former German Chancellor Gerhard Schröder, who chairs the shareholders committee, and Managing Director of the Germano-Russian joint venture (51% Gazprom owned, with Wintershall and E.ON Ruhrgas each having 24.5%) Matthias Warnig travelled to Brussels on Wednesday to discuss the project with the European institutions.
At 1,200 kilometres long, the pipeline, scheduled to become operational in 2010, would, in two phases, permit almost 55 billion m3 of gas to be supplied to the Community market annually. Linking the world's largest gas reserves to the European network of gas pipelines, the Nord Stream project would satisfy 25% of the additional gas needs of the EU27, thereby contributing to the energy security of the EU. That was the weighty argument Messrs Warnig and Schröder put on the table when they met Commissioners Andris Piebalgs (energy) and Günter Verheugen (industry) to seek their support for the project. At the start of January, the Commission confirmed that the Nord Stream pipeline had been identified as a project of European interest playing an important role in the priority interconnection plan as part of the energy and climate change package. The Commission, however, is not able to guarantee financial support, the decision for this belongs to the EIB.
Nord Stream is a highly controversial project facing two major difficulties. In the first place, it faces fierce opposition from several EU member states, with Poland and the three Baltic countries annoyed that they are being sidelined by the project, contrary to the principles of European solidarity. In the second place, it has to conform to the environmental requirements of the Council of Baltic States, of which the EU, Norway, Iceland and Russia are members, and comply with national and international law. Several criticisms have been directed at the project: environmental NGOs denounce the risks for marine life and risks related to unexploded mines and other chemical weapons placed at the bottom of the Baltic. In Sweden, politicians have expressed worry that the Russian navy could patrol the length of the pipeline, passing close to the island of Gotland.
On Wednesday, Mr Warnig told press that Nord Stream “is developing an active dialogue with all the countries around the Baltic Sea to find optimal ways to implement the project”. He also promised an assessment of the environmental impact of the project for this autumn. At this point, however, uncertainties on the matter prevent the EIB from supporting the project. While acknowledging that the EIB was “of course a possible associate” for the project, Mr Warnig said that discussions were still ongoing on a loan covering up to 33% of Nord Stream's costs, estimated at almost $6 billion. On Thursday morning, however, EIB President Philippe Maystadt confirmed that the EIB could not fund the project until such time as there was unanimity in the Bank's Board of Governors, where several member states are still opposed to the project. (eh)