Nord Stream 2 'Worth $6bn to Europe': AD Little
The Nord Stream 2 pipeline project will bring a total economic benefit to the European Union (EU) of €5.15bn ($6.1bn), according to a new report by economic consultancy AD Little (ADL) that was commissioned by the project company.
The investment until the end of July 2017 has already created 31,000 full-time job equivalents in the EU over five years, adding €2.25bn in Gross Domestic Product (GDP) in various industrial sectors, ADL said October 4.
Nord Stream 2 is designed to bring 55bn m³/yr of Russian gas to northeast Germany. This will be additional capacity to the existing Nord Stream pipe.
The objective of the ADL study is to understand the direct, indirect and induced effects of the project on the European economy, and on countries where actual investments in the pipeline have been or are being made. It estimates the effects related to the execution of the project, as well as those on supply chains and the wider economy.
The analysis used an economic modelling tool (IMPLAN) based on underlying statistical databases for different economies. The study considers all committed investments as of the end of July 2017, standing at €4.4bn out of the project’s total capital expenditure of €8bn. The most pronounced effects are seen in countries where major project-related construction activities are taking place: Russia, Germany, Finland and Sweden – and in countries traditionally associated with the offshore oil and gas industry that host the majority of service providers: the Netherlands, UK, Norway and Italy; and at the headquarters of the project developer and other international service providers.
Separately the project company has also submitted its permit applications for the construction of the pipeline to the authorities in Finland. The permitting procedures are well underway in all the countries along the pipeline route, NS2 said – Russia, Finland, Sweden, Denmark and Germany. "We continue to operate according to our planned timetable, and we expect to receive permit decisions in the five relevant countries by the end of Q1 2018," it said.
Denmark this month is to present a draft law to parliament that will give the country's foreign ministry first rights to vet all pipeline projects on the basis of foreign policy or security considerations. Russian analysts have claimed the draft law is directed against NS2.
The report can be downloaded here: www.adl.com/NordStream2impact
William Powell