According to the company’s website press release on September 27, 2022, the significant pressure drop caused by the gas leak on both lines of the gas pipeline registered yesterday leads to a strong assumption of the pipeline physical damage.
Nord Stream AG immediately informed the relevant coast guards about the incident. The positions of two assumed damages have been identified and are located north-east from Bornholm in Swedish and Danish EEZ, respectively.
Currently the Swedish and Danish maritime authorities established a 5nm safety zone around the identified locations (Nautical information | Danish Maritime Authority (dma.dk)).
Nord Stream AG has started mobilization of all necessary resources for a survey campaign to assess the damages in cooperation exchange with relevant local authorities. Currently, it is not possible to estimate a timeframe for restoring the gas transport infrastructure. The causes of the incident will be clarified as a result of the investigation.
Who We Are
Nord Stream AG, based in Zug, Switzerland, is an international consortium of five major companies established in 2005 for the planning, construction and subsequent operation of two 1,224-kilometre natural gas pipelines through the Baltic Sea.
The five shareholders of the Nord Stream consortium are Gazprom international projects LLC (PJSC Gazprom subsidiary), Wintershall Dea AG (formerly Wintershall Holding GmbH), PEG Infrastruktur AG (E.ON), N.V. Nederlandse Gasunie and ENGIE. Gazprom international projects LLC holds a 51 percent stake in the pipeline project.
Leading German energy companies Wintershall Dea AG and PEGI/E.ON hold 15.5 percent each, and the Dutch natural gas infrastructure company N.V. Nederlandse Gasunie, along with the leading French energy provider ENGIE, each hold a 9 percent stake. The combined experience of these companies ensures the best technology, safety and corporate governance for the Nord Stream project, which aims to provide a secure energy supply for Europe.
The twin pipelines, which have been operational since 2011 and 2012 respectively, have the capacity to transport a combined total of about 55 bcm of gas a year – that's enough to satisfy the energy demand of more than 26 million European households. Nord Stream has designed the pipelines to operate for at least 50 years.
Total investment in the pipeline system was 7.4 billion euros. This financing stemmed partly from Nord Stream's shareholders, which provided 30 percent of the project costs through equity contributions proportionate to their shares in the joint venture. Some 70 percent was financed externally by means of project financing from banks and export credit agencies.
Operations
Nord Stream’s business model is to provide gas transportation capacity for the natural gas coming from western Russia for distribution into the European gas grid. The gas transportation system is comprised of its twin, 1,224-kilometre pipelines through the Baltic Sea. Each has the capacity to transport 27.5 billion cubic metres of natural gas a year.
As operator, Nord Stream AG offers gas transportation capacities via its pipelines. This entails the day-to-day technical operation and commercial handling of gas transport (dispatching), the maintenance of all technical systems involved, continued liaison with permitting authorities in the countries through whose waters Nord Stream runs, as well as adhering to environmental management obligations and relevant technical standards (codes) of the respective permitting countries.
A contractual framework is in place to ensure the transport of gas from the entry point of the Nord Stream pipelines in Vyborg, Russia to the exit point in Lubmin, Germany. Nord Stream AG does not own, buy or sell gas transported via its twin pipelines – the trade in natural gas is solely between the shipper and its respective business partners in Europe. In Germany, the gas is received by the connecting pipelines OPAL (Baltic Sea Pipeline Link) and NEL (North European Gas Pipeline) for further transport into the European grid.
Gas transported through the Baltic Sea via the pipeline system is monitored 365 days a year, around the clock by Nord Stream experts. From Zug, Switzerland, the operators of the pipelines oversee all safety processes and parameters associated with gas transport from the Control Centre. There, they are in constant contact with the supplier of gas and the receivers to assess the flow of gas on a daily basis and to ensure that the pipelines are operating as planned.
Nord Stream also operates four pipeline facilities: landfalls in Russia and Germany where the offshore pipeline ties in to the onshore connecting pipelines; the Control Centre; as well as a fully independent Backup Control Centre.
Equipment needed for the operation of the pipelines is located at the landfalls, including isolation and emergency shut-down valves to separate the offshore and onshore pipelines, as well as a number of sensors to monitor parameters, such as pressure, temperature, gas quality and flow.
Our Shareholders
Nord Stream is a joint project involving five major companies: Gazprom international projects LLC (PJSC Gazprom subsidiary), Wintershall Dea AG, PEG Infrastruktur AG (E.ON), N.V. Nederlandse Gasunie and ENGIE. Such a powerful consortium guarantees the best technology, security and corporate governance.
(51.0 percent) - Gazprom is the largest supplier of natural gas in the world, accounting for approximately 15 percent of world gas production. It was established as a joint stock company in 1993, and is partly owned by the Russian state (50.002 percent). Core activities include exploration, production, transportation, storage, processing and marketing of hydrocarbons as well as generation and marketing of heat and electric power. Gazprom controls approximately 70 percent of Russian gas reserves, produces 78 percent of all Russian natural gas and generates 17 percent of the electricity in Russia. The company is a leader in the construction and operation of pipelines. It controls a 161,700 kilometre-long pipeline network, which transports roughly 660 bcm of natural gas per annum.
(15.5 percent) - With the merger of Wintershall Holding AG and DEA Deutsche Erdoel AG, two successful companies with a long tradition have formed Europe’s leading independent natural gas and oil company: Wintershall Dea. The company with German roots and headquarters in Kassel and Hamburg explores for and produces gas and oil in 13 countries worldwide in an efficient and responsible manner. With activities in Europe, Russia, Latin America and the MENA region (Middle East & North Africa), Wintershall Dea has a global upstream portfolio and, with its participation in natural gas transport, is also active in the midstream business. Wintershall Dea stands for more than 120 years of experience as an operator and project partner along the entire E&P value chain. The company employs around 4,000 people worldwide from over 60 nations.
(15.5 percent) - E.ON is an international investor-owned energy company, which focuses on energy networks and customer solutions. As one of Europe's largest energy companies, E.ON plays a leading role in shaping a clean, digital, decentralized world of energy. To this end, more than 75,000 employees develop and sell products and solutions for private, commercial and industrial customers as well as for cities and municipalities. Around 50 million customers purchase electricity, gas, digital products or solutions for electric mobility, energy efficiency and climate protection from E.ON. E.ON is headquartered in Essen, Germany.
(9.0 percent) - Gasunie is a European gas infrastructure company. Its network ranks among the largest high pressure gas pipeline grids in Europe, consisting of over 15,000 kilometres of pipeline in the Netherlands and northern Germany. The company offers transport services via its subsidiaries in the Netherlands and Germany and also offers other gas-related services, for instance in the field of gas storage and LNG. The company is the first independent gas transport provider with a cross-border network in Europe and aims for the highest standards in safety, reliability, efficiency and sustainability. The Gasunie network forms the core of what is called the northwest European "gas roundabout".
(9.0 percent) - ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, DJSI World, DJSI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).
Contact
Switzerland
Nord Stream AG
Industriestrasse 18
CH-6302 Zug
Tel.: +41 41 766 91 91
Fax: +41 41 766 91 92
Russia
Nord Stream AG
Dimitrova St, 4B
188800 Vyborg
Tel.: +7 81356 734 34
Fax: +7 81356 734 35
For general inquiries please send an email to info@nord-stream.com or contact Nord Stream offices by phone.
For media inquiries please send an email to press@nord-stream.com or call Nord Stream hotline +41 41 766 91 90.
