Germany: gas pipeline through the Baltic

Gazprom, BASF AG and E.ON AG have signed a basic agreement on the construction of the North European Gas Pipeline (NEGP) through the Baltic sea. The parties to the agreement intend to set up the North European Gas Pipeline Co. as a joint German-Russian venture, with Gazprom holding 51% and BASF and E.ON each 24.5%. The NEGP will run from Vyborg on Russia’s Baltic coast to Germany’s Baltic coast, the Greifswald region being provisionally earmarked as landfall. The route through the Baltic is being optimised according to technical and economic criteria. Preliminary investigations have already been carried out into the seabed structure. The pipeline will be over 1,200km long. It is planned to be commissioned in 2010, initially consisting of a single pipeline with an annual transmission capacity of approx. 27.5 billion m³. The project envisages laying a second pipeline and doubling the transmission capacity to approx. 55 billion m³ per annum. The total investment for the twin pipeline project exceeds EUR 4 billion.

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