Newsletter about the naturalFacts gas pipeline THROUGH the baltic sea issue 20 / November 2011

The two lines of the Pipeline system reach land at . At the landfall station, the natural gas is purified, measured, and if necessary adjusted to the proper temperature prior to transport. Gas Transport Begins from the Lubmin Landfall Facility in The landfall facility is the logistical link between Nord Stream and the European gas grid

he landfall facility in lines also comes from the region into a gas transportation agree- Along its 470-kilometre route, the Lubmin is a hub of sorts, where the Yuzhno-Russkoye ment with OOO Gazprom Export pipeline runs through three Ger- T the actual switching gas field is located. It is the big- to book up to 55 bcm capacity man federal states, and crosses point of a cross-border project gest natural gas field developed annually. The pipelines will trans- a total of 172 roads, four high- that will contribute to a secure in to date. Nord Stream port gas from the entry point in ways, 27 rail lines, and 39 bod- supply of energy to for shareholders Gazprom, E.ON Russia to the exit point in Germa- ies of water. Since the gas loses decades. At the same time, the and Wintershall have a stake in ny, where the gas will be received pressure over the long route, it landfall facility is only a small part this gas field, where reserves by the connecting OPAL (Baltic is repressurised at a compres- of the puzzle in the entire frame- are estimated at 600 billion Sea Pipeline Link) and NEL (North sor station in Baruth, south of work of the onward transport of cubic metres (bcm). There is European Gas Pipeline) overland Berlin. The second pipeline that the gas that flows through Nord enough gas in this source alone pipelines. In total, it takes the gas links the Nord Stream system Stream’s twin pipeline system. to guarantee all Russian gas ex- almost 10 days to make the jour- with the European gas market Gas flow through Line 1 of the ports to Germany for the next six ney from Siberia to Germany. is NEL. Construction of the pipe Nord Stream Pipeline system years. From 142 drill holes, spread line began in spring 2011, with and its onward transport into around an area of 1,100 square On the Way to Europe completion expected in autumn the European gas grid began in kilometres, the lines lead to an At the OPAL and NEL receiving 2012. The NEL pipeline is 440 November 2011. This milestone ultra-modern preparation facility. station, the incoming and out- kilometres long, and runs west was celebrated on November 8 at A total of 75 million cubic metres going gas streams are checked ward across northern Germany an event held by Nord Stream at is handled there daily. The raw for quality, subjected to official from Lubmin to Rehden, in Lower the Lubmin landfall facility. More gas is heated, stripped of wa- measurement, and adjusted in Saxony. The pipeline has a cap- than 400 guests attended. ter content, purified, re-cooled, terms of pressure and volume acity of over 20 bcm each year, compressed and then sent as well as temperature, before which roughly corresponds to The Gas Comes from Siberia on its way through Gazprom’s being transported further. one-fifth ­of Germany’s annual The Russian city of Novy Uren- gas pipeline system. The nat- consumption. The gas from the goy is situated in Western Sibe- ural gas flows 2,500 kilometres The OPAL pipeline links Nord OPAL and NEL pipelines will be ria, 2,500 kilometres from Mos- from West Siberia to Vyborg. Stream with existing European transported onward to Belgium, cow, and only 60 kilometres There, in the landfall facility natural gas transport­ systems. In Denmark, France, ­­the Nether- from the Arctic Circle. Some 74 in Portovaya Bay, 1.5 kilometres future, up to 35 bcm of gas will lands, and the UK, along with percent of all Russian natural from the Baltic Sea, the natural flow through the OPAL pipeline other countries. gas comes from this region – it gas is fed from the Gryazovets- annually. This amount is enough is no wonder that the location Vyborg pipeline into the Nord to supply a third of Germany with Construction of Nord Stream’s is sometimes also called “Rus- Stream Pipelines. As operator, natural gas for a year. The pipeline Line 2 began in May 2011 and is sia’s unofficial gas capital.” Much Nord Stream provides transport was completed in summer 2011, progression on schedule. Line 2 of the natural gas that will flow capacities through its pipeline and runs south from Lubmin to will be operatioal in the fourth through Nord Stream’s twin pipe- system. Nord Stream has entered Brandov, in the . quarter of 2012. GE GE ausgabeISSUE 20 / November19 / November 2011 2011 A IausgabeSSUE 20 / November20/ November 2011 2011 A Facts P 2 Facts P 3 Nord Stream Finland Vyborg Lubmin Landfall Facility Norway

> Offshore to onshore: Nord Stream’s twin A PIG Traps Intelligent PIGs Estonia Russia offshore pipelines run through the Baltic Sea The integrity of the Nord Stream Pipeline is checked The intelligent PIGs are carried through the pipeline by the gas stream. on a regular basis by what are known as intelligent They automatically detect the smallest of changes due to corrosion or from Russia, and exit at the German mainland PIGs (Pipeline Inspection Gauges). The PIGs are mechanical damage. They also register any possible movement of the Latvia housed in traps and fed into the pipeline via launch- pipeline due to external impacts after it has been commissioned. Denmark at the Lubmin landfall facility. Here, gas from ers in Russia. The PIGs are then recovered safely Lithuania Nord Stream is prepared and tested before in Germany. Russia being transported onward through the Lubmin near European pipeline grid. B Double-Gate Valves C Shut-Down Valves Nord Stream Pipeline Landfall Huge double-gate valves separate the gas in The majority of the valves in service at the landfall Germany Poland he Lubmin landfall facility is streams are also checked for quality, the pipelines from the PIG traps when they are facility are shut-down valves. They are employed for the logistical link between subjected to official measurement, not in operation. The valves are about 10 metres safety purposes. In an emergency, they immediately the Nord Stream Pipeline and adjusted in terms of pressure and tall, and weigh 102 tonnes each. This makes interrupt the flow of gas into or out of the pipelines. T system and the European long- volume, as well as temperature, before them the heaviest double-gate valves that have All the valves were developed especially for the distance gas network. Arriving from being transported further through the ever been produced. Nord Stream project. Pipeline Landfall offshore in the , Nord OPAL (Baltic Sea Pipeline Link) and Stream’s twin pipelines reach land near NEL (North European Gas Pipeline) Nord Stream’s twin pipelines reach the ­German Lubmin’s harbour area. The natural gas connecting pipelines. The 470 kilo­metre mainland east of the harbour entrance in ­Lubmin. that is transported through Nord Stream OPAL pipeline runs south from Lubmin Close to the coast, the pipelines ­were laid in starts its journey in Portovaya Bay, near to Brandov in the Czech Republic, while trenches and covered.

Vyborg, Russia – some 1,224-kilometres the 440 kilometre NEL pipeline runs W away. When the gas reaches the land­ westward across northern Germany to N fall facility in Germany, it is cleaned of Rehden in Lower Saxony. Combined,

potential impurities in special filters, and the two pipelines will be capable of S E heated to prevent con­densation. At the transporting about 55 billion cubic landfall, the incoming and outgoing gas metres of gas to European users. 7 12 1

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Main Components of the Landfall Facility Nord Stream OPAL/NEL

1 Nord Stream Pipelines 4 Offshore 2 Preheater 7 OPAL / NEL PIG Traps 10 OPAL and NEL Preheating The twin pipelines of the Nord The arriving gas is filtered and The PIG (Pipeline Inspection Here, the natural gas is heated Stream Pipeline system travel 1,224 warmed to the temperature required for Gauge) traps house the intelligent PIGs, to the requisite temperature for further kilometres through the Baltic Sea transport through the OPAL (Baltic Sea which are sent through the pipelines for transport through the OPAL and NEL Responsible 2 before they reach land in Lubmin. Pipeline Link) connecting pipeline. inspection as required. connecting pipelines. OPAL/nel Nord Stream 2 177.5 Bar at Landfall Area 5 Relief Valve 8 Boiler Building 11 NEL Measurement In the first portion of the landfall area, If an operational malfunction Gas temperature sinks when trans- The gas streams are checked for B the gas pressure is about 177.5 bar. In the should occur, gas will be released via ported over long distances. ­Therefore, quality, subjected to official measure- subsequent measuring and control facili- the relief valve, which eases pressure before it is transported further, it will be ment, and adjusted in terms of pressure ties, the pressure is about 100 bar. on the entire Lubmin landfall facility. warmed to the requisite temperature in and volume before further transport 3 the boiler building. by NEL. A 3 Offshore 1 Preheater 6 Operations Buildings 9 OPAL Measurement 12 Landfall Access The arriving gas is first filtered In addition to the control systems, The gas streams are checked for The landfall is accessible from the and then warmed to the temperature the landfall facility is also equipped with quality, officially measured, and adjusted harbourside. The entire compound had required for transport through NEL ancillary structures such as a workshop in terms of pressure and volume before to be raised in order to prevent it from (North European Natural Gas Pipeline). and operations building. transport by OPAL. being flooded during storms. GE

ISSUE 20 / November 2011 A Facts P 4

In Brief Monitoring Results Published Repricing Nord Stream released its 2010 national monitoring results agreed Upon conclusion of the environmental Nord Stream agreed monitoring conducted in 2010 repricing arrangements in October with its is that the construction of the relationship banks for the gas pipeline has been found 3.9 billion euro Phase I to exert no significant impact project finance facilities. on the environment. The cal- Nord Stream undertook this exercise in order culations and models in Nord to bring Phase I pricing Stream’s environmental impact into line with the pricing assessments (EIAs) have thus it achieved for the 2.5 proven accurate, and it is es- billion euros raised for the Equipment used to collect water samples is retrieved from the Baltic Sea. Phase II facilities which timated that the environmental were closed earlier this ord Stream is conduct- and operation of the pipelines to impact so far has been in line year. Phase I funding had ing the most compre- date. Nord Stream has taken the with the EIAs or smaller than an- originally been signed in hensive environmental initiative to provide a compilation ticipated. The data are analysed March 2010. N research of the Baltic Sea’s flora of the national monitoring results in internationally recognised lab- Commenting on the and fauna. From 2010 to 2016, from Russia, Finland, Sweden, oratories, such as ALS Scandi- success of the repricing the company plans to invest Denmark and Germany. The re- navia and Verifin in Finland. The process, Nord Stream Financial Director Paul more than 40 million euros into port, which was published in late results are reported to the na- Corcoran said: “We are its national environmental moni- October, contains results from tional environmental authorities delighted once again toring programmes to monitor 1,000 survey locations along the of the countries whose waters to receive such strong any impact of the construction entire pipeline route. The main the pipelines pass. support from the banks who recognise the sound commercial structure of this project, its long term stability, as well as the strength and quality of Last Pipes Leave EUROPIPE shareholder backing from EUROPIPE delivered the final pipes for the Nord Stream project some of Europe’s top energy companies.” bout 200,000 form Nord coated pipes are then shipped to This amendment will Stream’s twin pipelines. interim marshalling yards. From harmonise the pricing A The primary manufac- Mukran, the pipes will be trans- between the two finan- turer of the pipes for the pro- shipped to Slite and Karlskrona, cings phases. Given the excellent construction ject is EUROPIPE Gmbh based Sweden. From Kotka, they will progress, the risk profile in Mülheim an der Ruhr, Ger- go either to the Castoro Sei of Phase I is significantly many. From April 2008 through laybarge directly or to Hanko. reduced. Nord Stream September 2011, the company In spring 2012, the final coated will amend the interest The last pipe on its way to Mukran. margins of the Commer- delivered 150,000 pipes for the pipes will be trans-shipped to the cial, Hermes and UFK project. Each pipe, made from were transported to Sassnitz Castoro Sei for the completion (untied loan guarantee high-tensile steel, weighs more Harbour in Mukran on the Island of Line 2. Five marshalling yards of the German Govern- than 10 tonnes and is about 12 of Rügen and to Kotka, Finland were used for the Nord Stream ment) tranches, but will not change the pricing metres long. In total, 1.6 million where they will receive a coat- project, each strategically locat- of the SACE (Italian tonnes of steel were used by ing of concrete at the EUPEC ed less than 100 nautical miles Government-guaranteed) EUROPIPE to manufacture the PipeCoatings factories. Once from the route. Nord Stream tranche. pipes. On October 13, the last coated, the pipes have doubled received the German logistics train laden with 100 pipes left in weight, which provides add- award in 2010 for its green logis- >www.nord-stream.com the EUROPIPE factory. The pipes ed stability on the seabed. The tics concept.

contacts Head Office Branch office newsletter Nord Stream AG Tel. +41 41 766 9191 Nord Stream AG Tel. +7 495 229 6585 To subscribe to FACTS please send an Jens D. Müller Fax +41 41 766 9192 Natalia Vorontsova Fax +7 495 229 6580 e-mail to [email protected] Grafenauweg 2 ul. Znamenka 7, bld 3 or visit our website: 6304 Zug, Switzerland 119019 Moscow, Russia www.nord-stream.com

Credits: P. 1: Nord Stream (1); P. 2/3: Infographic by KircherBurkhardt; P. 4: Nord Stream (2)