Gazprom says will save $1bn/yr in transport costs from Nord Stream 2
Russia's Gazprom expects to save $1bn in annual gas transportation costs once its Nord Stream 2 pipeline to Germany has reached its full 55bn m3/year capacity, the company said on May 28.
The pipeline, which will enable Russia to flow less gas via its adversary Ukraine, was due to start up at the end of 2019. But permitting difficulties in Denmark and US sanctions imposed in 2019 caused the project significant delays. Russian officials are hopeful that the pipeline, now 95% complete, will start up later this year, but neither Gazprom nor the Russian government have speculated about when it might reach full capacity.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
By bypassing Ukraine, Gazprom expects to save $1bn each year when Nord Stream 2 is fully loaded with supplies, and a further $500mn from the TurkStream that runs under the Black Sea, once that pipeline is running at full capacity, Gazprom said in a conference call with investors on May 28. TurkStream, launched in January 2020, was operating at 73% of its 31.5bn m3/yr capacity in the first quarter of this year.
US sanctions imposed on Nord Stream 2 at the end of 2019 forced Swiss contractor Allseas to withdraw from the project, bringing construction to a halt. It took roughly a year for Russia to deploy its own pipelaying vessels to finish the job, and the work is ongoing.