Energy for Europe's Future

ENERGY FOR EUROPE’S FUTURE

Nord Stream 2: Energy for Europe’s Future |

A NEW BALTIC SEA PIPELINE

ord Stream 2 plans to build route today. The following pages provide a new pipeline through the information about the Nord Stream 2 Baltic Sea that will transport project. It explains how we will deliver Nnatural gas from the world’s an underwater pipeline, and defines the largest gas reserves in Russia to homes steps being taken not only to ensure and businesses across Europe. Our vision that the pipeline will be built with as little is to create reliable infrastructure that impact on the environment as possible, can enhance Europe’s energy security, but that it will operate safely for years whilst fulfilling the highest standards for to come. Nord Stream 2 will be an Matthias Warnig safety and environmental protection. important gas supply route for Europe, As European production decreases and Chief Executive Officer powering Europe’s future. Nord Stream 2 AG demand for gas continues to grow, Nord Stream 2 will deliver additional The Nord Stream 2 team has a great transportation capacity and provide deal of experience in planning and Europe with a secure and robust gas constructing pipelines and transporting supply long into the future. gas reliably and safely to the markets where it is needed. The support of Building an offshore pipeline through to the views of many countries whose leading European energy companies the Baltic Sea is a significant engineering waters the pipeline passes through, as and suppliers brings further world-class challenge that benefits hugely from well as their neighbours who also have expertise and access to advanced the proven experience and success of an interest in this new infrastructure. pipeline technology and materials. the Nord Stream project. Nord Stream This knowledge is a huge asset as we was an EU project of common interest, deliver a new pipeline, but it is only the delivered under TEN-E status as trans- beginning. Before construction of the European energy infrastructure. From Nord Stream 2 Pipeline system begins, several years of monitoring, we know that there will be further environmental studies a Baltic Seapipeline can be constructed to understand any recent changes in and operatedwithout any significant or the environmental context, as well as a lasting environmental impact. We have dedicated permitting and consultation researched and optimised the most process to gain feedback from the suitable pipeline route, and listened people living in countries bordering the Matthias Warnig

3 | | Nord Stream 2: Energy for Europe’s Future

CONTENTS

10 –11 Nord Stream – A proven route, a proven approach

06 – 07 Safeguarding European energy security

08–09 Enhancing the natural gas market

12 –15 Meeting Europe’s energy needs

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20– 21 Building an undersea highway

16 –17NORWAY SWEDEN A connected ESTONIA Europe FINLAND LATVIA

DENMARK

LITHUANIA RUSSIA

IRELAND

UNITED

KINGDOM

POLAND GERMANY NETHERLANDS

CZECHIA UKRAINE

BELGIUM

SWITZERLAND AUSTRIA

SLOVAKIA

ITALY HUNGARY FRANCE SLOVENIA

ROMANIA

SPAIN SERBIA PORTUGAL CROATIA BULGARIA

AZERBAIJAN LIBYA via TURKEY ALGERIA MOROCCO GREECE

18 –19 An optimal route 24– 25 Building on a strong heritage

22– 23 Protecting a sensitive environment

5 | | Nord Stream 2: Energy for Europe’s Future

SAFEGUARDING EUROPEAN ENERGY SECURITY

ecuring access to natural gas for households and industry is a high priority in the European S Union. With Europe’s own gas resources depleting and/or difficult 2.2 million km and uneconomic to reach, European “ suppliers need secure gas imports in the long term to ensure global industrial of pipelines competitiveness and meet domestic demand. Under the EU’s environmental cross Europe ” commitments, availability must also be matched with sustainability. Natural Eurogas 2016 gas, as an abundant and flexible fuel, is a cost-effective way to achieve the climate protection targets. The Nord Stream 2 Pipeline is a timely and environmentally- sound solution to bringing large volumes of natural gas to Europe.

Pipelines have supplied energy for decades because they are the safest The decision to build Nord Stream 2 to consumers in Europe. The proposed and most economical way to transport stems from many years of research route through the Baltic Sea – gas over long distances. Currently, there and studies into Europe’s energy starting on Russia’s Baltic coast and are approximately 2.2 million kilometres import requirements, existing capacity, coming ashore near Greifswald in of pipeline running through the sea and environmental considerations, route Germany – is the most direct connection landscapes, connecting gas production planning and optimisation. These and has many environ-mental in and around Europe with the local studies demonstrated the benefit to advantages. The route has been tested consumers. However, new import routes Europe and the commercial viability of and proven through the construction and are still necessary to meet Europe’s a major pipeline link from the world’s operation of the existing Nord Stream rising import needs. largest gas reserves in northern Russia system.

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German landfall for the existing Nord Stream Pipeline Nord Stream 2 will run The privately-ﬁnanced Nord Stream 2 within the EU’s internal energy market. from Russia’s Baltic coast to the German Pipeline will deliver modern gas-trans- Adding a new trunk line is therefore coast near Greifswald port ation infrastructure and enhance expected to stimulate the development and largely follow the route of the existing European energy security. In a challenging of new connections between countries Nord Stream Pipeline. economic climate, this investment presents to manage the onward transportation of an opportunity for Europe to further the gas across Europe. Nord Stream 2 strengthen its gas supply infrastructure. will strengthen the transmission network, ensuring that Europe enjoys a robust Once gas lands in Europe, it can – in gas supply, even at demand peaks, now the future – be transported anywhere and in the future.

7 | ENHANCING THE NATURAL GAS MARKET

The EU’s domestic gas production is in rapid decline. To meet demand, it needs reliable, affordable and sustainable new gas supplies.

The Nord Stream 2 natural gas pipeline will transport gas from the world’s largest reserves in Russia to the EU internal market. With capacity to supply up to 26 million households, Nord Stream 2 will substantially enhance the EU’s long-term energy security and help maintain its competitiveness.

Europe faces an import gap as demand outstrips supply EU domestic gas production is set to fall 50 percent in the next 20 years, as ageing assets are retired and hard-to-reach gas in the North Sea becomes uneconomic, particularly at a time of low energy prices. The EU therefore needs to import more affordable gas to meet its needs.

Source: Based on Prognos 2017. Total demand includes all gas sourced from the European market, EU countries, plus Switzerland and western imports by Ukraine.

~ 15 % EU 28 production Additional imports to be secured

~ 30 % EU 28 production 2015 2035 ~ 20 % Imports 491 bcm 489 bcm from Norway

~ 45 % ~25 % ~ 65 % Imports from Imports Imports from outside of Europe from Norway outside of Europe incl. declining imports from North Africa

Complementing existing supply routes The existing Nord Stream Pipeline already runs at near full capacity – reliably handling the temporary demand peaks of today’s Proven Natural consumers. But with a growing import gap, Gas Reserves the EU needs to further strengthen and Source: BGR Energiestudie 2016 diversify its import capacities to meet future demand. Nord Stream 2 will supplement existing supply routes and, together with other new additions such as increased LNG shipments and the Southern Corridor, help to reduce the import gap.

Strengthening the EU’s transmission network Nord Stream 2 will stimulate the development of onshore infrastructure to transport gas from the pipeline across Europe. This will include inter-country connections and reverse ﬂows, which will help to bring the beneﬁts of the internal market to more consumers. 1,500 bcm 1,900 bcm 47,800 bcm EU Norway Russia ENHANCING THE NATURAL GAS MARKET

Nord Stream

Nord Stream 2

Gaspool Supplying the EU’s internal energy market Once gas lands in Germany, it can – in the future – flow anywhere in the EU’s internal energy market via the different hubs. For example, it will flow from the German Gaspool hub to neighbouring hubs, such as in the Netherlands and Belgium, boosting available gas supplies there. It will also flow to the Austrian hub, Central European boosting liquidity and competitiveness in Gas Hub the southern, central and eastern EU. A direct connection Nord Stream 2 will provide a direct link between northern Russian gas reserves and European gas consumers, via the 1,230 km shortest possible route through the Baltic Sea. It will build on the success of the existing Nord Stream Pipeline, continuing over 40 years of EU-Russian energy cooperation. Lower-carbon fuel

The EU must reduce its CO2 emissions 40 percent by 2030 from 1990 levels. Renewable energy holds great promise, but is not yet sufficiently scalable, reliable or affordable. Natural gas is therefore in demand as a lower-carbon fossil fuel that Countries outside the European Union is flexible for use in power, heating, Nord Stream Pipeline in operation transport and chemical feedstock. CO CO2 Planned Nord Stream 2 Pipeline Electricity generation from gas-fired ² Indicative direction of onward transportation power plants produces up to 50 percent Virtual trading point less CO2 than coal-fired plants. bcm Billion cubic metres | Nord Stream 2: Energy for Europe’s Future

NORD STREAM — A PROVEN ROUTE, A PROVEN APPROACH

At a glance he Nord Stream twin pipeline set a new benchmark for Nord Stream 2 will European infrastructure build on the experience of projects in terms of safety, the Nord Stream Pipeline, T environmental protection, international an EU project of common collaboration, public consultation, and interest which has been fully efficient delivery. Over several years of operational since 2012. planning, construction and operation, the team behind Nord Stream built up The new pipeline will a substantial body of research, analysis benefit from extensive and expertise regarding conservation of research and knowledge the Baltic Sea environment, the optimal gained during that project, pipeline route, and technical construction with a proven route, modern considerations. Extensive environmental impact assessments and public con- technology, and effective sultation feedback demonstrate that a environmental protection. Baltic Sea pipeline can be constructed and operated without any significant or lasting detrimental impact on the local environment or neighbouring communities. This knowledge is an asset for the planning and delivery of Nord Stream 2.

A European success story The Nord Stream Pipeline has been a European success story: In 2006, a consortium of major European energy companies came together to deliver a privately ﬁnanced, reliable gas supply for Europe. The challenge was to build a twin pipeline system from Russia to Germany, with a capacity to transport 55 billion cubic metres (bcm) of natural gas a year – enough to supply 26 million European households. Given its signiﬁcant

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Extensive surveys of the Baltic Sea generated a wealth of research of this NORD STREAM — unique environment. A PROVEN ROUTE, contribution to EU energy security, Nord Stream was officially designated A PROVEN APPROACH an EU project of common interest. In-depth analysis of the most environmentally-sound route was undertaken, and offshore surveys of the Baltic underwater environment led to the most detailed research of the area ever undertaken. International consultations were carried out and the technical pipe- laying process was safely completed. In 2011, the first of the twin pipelines opened, shortly followed by the second pipeline in 2012. Nord Stream AG – comprising Gazprom, E.ON, BASF / Wintershall, Nederlandse Gasunie and GDF Suez (now Engie) – had delivered the project within budget and on time. The completion of the Nord Stream Pipeline gave Europe a direct link to Russia’s vast energy reserves for the very first time, and the ambitious project received international recognition as a model for major infrastructure development.

The original Nord Stream Pipeline is making an important contribution to the EU’s economic and environmental policy objectives. But demand for imported gas is continuing to grow. For this reason, Nord Stream was asked to investigate bringing more Russian gas to Europe through the Baltic Sea to ensure Europe Nord Stream was has a robust supply into the future. “ Now, Nord Stream 2 will add a second designated an EU project twin pipeline along a similar route. Like Nord Stream, the new pipeline will be carefully planned and constructed to of common interest ” minimise any harm to the Baltic Sea environment and deliver a reliable gas supply to Europe.

11 | | Nord Stream 2: Energy for Europe’s Future

MEETING EUROPE’S ENERGY NEEDS

At a glance As the EU seeks to meet its emissions targets, natural gas is in demand as a lower-carbon fossil fuel: reliable, ﬂexible, scalable and affordable.

The EU’s domestic gas production is, however, in rapid decline as hard- to-reach gas becomes increasingly uneconomic. The EU must import more Natural gas – energy consumption and it is the only gas to meet demand and a lower carbon fuel fossil fuel with projected growth in the maintain industrial With the EU seeking to reduce its energy mix. The European Commission’s competitiveness. carbon emissions, natural gas offers Energy Roadmap 2050 envisages an a solution to meet the region’s energy important role for gas as it strives to Russia’s geographic requirements and decarbonisation goals reduce carbon emissions. in an affordable way, alongside renewable proximity, plentiful gas energy generation technologies. Using gas to generate electricity creates reserves and history of about 50 percent fewer emissions per reliable supply make it a Natural gas is the cleanest fossil fuel, kilowatt-hour than using coal, which natural partner for a new as it burns with the lowest intensity of has seen a resurgence in recent years gas transportation route carbon dioxide and other emissions such as a surplus of cheap coal supplies has that can enhance security as particulate matter. Natural gas makes entered the market. Switching just one of supply. up almost a quarter of the EU’s total percent of the EU’s overall electricity

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generation from coal to gas would cut than the hours it takes for coal-ﬁred

CO2 emissions by about 5 million tonnes. plants, or even days for nuclear reactors. Natural gas delivered by Nord Stream 2 This means that gas is an ideal energy (55 bcm) could save around 14 percent of source to supplement renewable energy Natural the EU’s total CO2 emissions from power sources and quickly compensate for “ generation, if all the gas from the pipeline fluctuations in renewable energy were used in place of coal-fired power production. Energy experts from gas is the stations. governments, the private sector and environmental organisations agree that cleanest Partner to renewable energy natural gas can make an important In addition to its lower carbon profile, contribution in adapting rapidly to fossil fuel natural gas offers a second significant changing capacities that occur when ” benefit: its flexibility. Gas-fired turbines energy from intermittent renewable can be brought online in minutes rather resources is fed into the electricity grid.1

1 See for example Greenpeace Energy Revolution, 2014, p.27 13 | | Nord Stream 2: Energy for Europe’s Future

Natural gas production ﬁeld in Siberia, Russia.

Norwegian production is currently at its peak, but is projected to drop in the coming years as major ﬁelds deplete.

Dutch production is also dropping, as major ﬁelds in populated areas face issues of seismicity and production caps.

UK production is expected to fall in Europe’s import gap the coming decades, Experts, major industry and political bodies too, leaving only 10 bcm of annual all expect a signiﬁcant drop in European gas production from its production to occur over the coming years. continental shelf. While predictions vary, main producers such as Norway, the Netherlands and the UK all see their production outlooks falling. This German production shortfall will need to be replaced production by imports. Some exporters, such as the has halved in the countries of northern Africa, are also facing past decade and is a projected drop in production and / or projected to drop further. increasing domestic demand.

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Russia Europe 47,777 3,229

CIS Ex. Russia North America 15,485 11,155

Africa Iran 14,377 33,721 Far East 17,569

CS America 7,643

billion cubic metres (bcm), BGR Energiestudie 2017.

At the same time, gas demand is A longstanding expected to recover (in some markets energy relationship more than others), as the global Importing natural gas from Russia is a economy returns to growth and gas natural choice for the European market. is seen as an increasingly attractive Russia is geographically closer than lower-carbon energy source. This many other potential sources and has demand is expected to stay at around the world’s largest reserves of natural the same level over the coming decades. gas. The Nord Stream 2 Pipeline will link In 20 years, the EU could need around the EU directly to Russian gas fields, 120 bcm of additional imports, when representing the continuation of a supply factoring in the projected drop in relationship of over 40 years. Russian northern African, Norwegian and gas makes up about six percent of the EU domestic domestic production. EU’s total energy consumption. Just as “ Europe needs a reliable source of gas While part of this shortfall can be from Russia to meet its goals, Russia gas production covered by other suppliers, or liquefied also relies on gas customers in Europe natural gas (LNG) shipments – they for income. is set to fall 50 will not be sufficient to fully cover the growing import requirements. Additional percent in the capacity is needed to ensure that supply remains robust to cope with demand next 20 years ” and usage spikes.

15 | | Nord Stream 2: Energy for Europe’s Future A CONNECTED EUROPE

NORWAY

SWEDEN

ESTONIA

FINLAND

LATVIA

DENMARK

LITHUANIA RUSSIA

IRELAND

UNITED

KINGDOM

POLAND GERMANY NETHERLANDS

CZECHIA UKRAINE

BELGIUM

SWITZERLAND AUSTRIA

SLOVAKIA

ITALY HUNGARY FRANCE SLOVENIA

ROMANIA

SPAIN SERBIA PORTUGAL CROATIA BULGARIA

AZERBAIJAN LIBYA via TURKEY ALGERIA MOROCCO GREECE

Existing connections Planned connections Country with LNG terminal

Pipelines from the North Sea Nord Stream 2 EU internal market Pipelines from Russia Pipelines from the Caspian Sea Pipelines from North Africa European pipeline grid

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“In the future, once the gas lands in Europe, it will be able to ﬂow anywhere in the EU’s internal energy market ”

At a glance Once gas from the pipeline lands in the EU, y increasing gas imports the development of new infrastructure it can – in the future – be through the Baltic Sea to that connects countries, such as transported anywhere in the Europe, Nord Stream 2 interconnectors and reverse flow internal market. The gas will B will be able to supply a capabilities. Having sufficient liquidity portion of the EU’s future import re- will be a decisive factor in the success be directed via existing quirements and make up for the decline of the internal market, alongside free hubs to northwest Europe in domestic production. This additional and fair competition between suppliers and will strengthen import route will improve supply relia- and buyers. Nord Stream 2 will support connections to southern, bility and energy security. this aim by bringing extra liquidity to central and eastern Europe. the energy market, which can help to Supplying Europe’s keep prices competitive across the By boosting liquidity internal energy market whole region. and competitiveness across In the future, once the gas reaches the pipeline’s landfall near Greifswald in Strengthening connections the region, Nord Stream 2 Germany, it will be able to flow anywhere It is anticipated that one third of the will stimulate the in the EU’s internal energy market. additional gas landing in Germany will construction of more Connecting pipelines will redirect and be transported onwards to northwestern connections between transport the gas on to neighbouring Europe, and increase supply in this well- countries and reverse flows, countries and beyond. Germany is connected gas market. The remaining strengthening the internal already well connected to the rest of two thirds of the gas is expected to Europe via a number of different pipeline be transported to central, eastern and energy market and bringing routes, but it is anticipated that the southern Europe, contributing to the its benefits to more increased supply from Nord Stream 2 expansion of the central European Gas consumers across Europe. will induce the construction of additional Hub in Baumgarten, Austria. This will infrastructure that will help gas flow more help to boost the markets for natural easily across the Continent. gas in this area to a comparable level of liquidity and competition as markets in In fact, “helping energy cross northwestern Europe. borders” is one of the core targets in the European Commission’s action This investment is fully privately funded, plan towards enabling unrestricted without subsidies, and the gas price Europe’s Inter- connected Gas energy flows throughout the EU. This in this competitive market will be Network includes facilitating and investing in determined by supply and demand.

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Nord Stream 2 “is committed to the highest international standards for safety, environmental protection and technical integrity ”

AN OPTIMAL ROUTE

At a glance he planned route of the The benefits of Nord Stream 2 Pipeline provides offshore pipelines Nord Stream 2 provides the most direct connection During the route-planning process for a direct connection between T between the vast gas reserves the original Nord Stream Pipeline, an Russia’s vast gas reserves in Russia and consumer markets in the alternative land route was the subject and EU consumer markets. European Union. The underwater pipeline of substantial discussion. Part of the enters the Baltic Sea on the Russian challenge posed by an overland route The route is optimised coast, passes through the waters of is the need for compressor stations, at through years of research five countries, and reaches land near regular intervals of about 100 to 200 Greifswald, Germany. Nord Stream 2 kilometres, to keep the gas flowing. to maximise safety, environ- will largely follow the route of the existing These compressor stations require mental, technological and Nord Stream system. fuel to operate, adding to costs and economic benefits. creating carbon dioxide emissions as This route is the result of years of well. With a maximum input pressure of The pipeline passes research, optimising for safety, 220 bar for the offshore Nord Stream through the waters of five environmental, social, economic and Pipeline, no intermediate compression is countries, which will be technical considerations. Thanks to needed to transport the gas a distance this extensive assessment process, of some 1,230 kilometres. The example extensively consulted the pipeline corridor has been studied of other overland pipelines shows that throughout the development for several years. This research has environmental impacts following land process, along with other demonstrated that the construction construction are greater and require Baltic neighbours. and operation of a pipeline along the longer recovery periods than offshore planned Nord Stream 2 route will have construction. no long-term detrimental impact on the environment or on neighbouring Transporting gas in tanker ships, in the onshore communities. form of liquefied natural gas (LNG), is also

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ecologically sensitive species of animal environmental protection and technical or plant life. Also taken into account was integrity. The commitment will be minimising any seabed work that might overseen by the authorities of the five disrupt its natural composition. The field countries whose waters the pipeline studies included analyses of water and passes through, as well as international soil samples as well as observation of conventions. Nord Stream 2 is under- the behaviour of fish, marine mammals taking extensive consultations to address and birds. The second criterion looks at any concerns and ensure that the pipeline socio-economic factors to minimise any complies fully with the national legislation. contact with shipping, fishing, dredging, In addition to these five nations, the pipe- military or tourism-related activities – and line may be of interest to neighbouring with sea installations, such as existing states such as Estonia, Latvia, Lithuania cables or wind turbines. Avoiding known and Poland, which are also included in the areas with discarded conventional and consultation process. chemical munitions was also a top priority in the route selection process. The third The international consultation process criterion covered technical considerations, is intended to give all countries possibly such as minimising construction time, affected by the Pipeline the opportunity and therefore any disruptions, as well as to review the project. Nord Stream 2 reducing the technical complexity of the has produced an Environmental Impact operation to keep the use of resources as Assessment Report, including cross- low as possible. border consultations, which outlines our coordinated approach to protecting the A pipeline through the environment and provides the public and waters of many nations other stakeholders with the opportunity The Nord Stream 2 Pipeline will follow to respond. a supply option. But the LNG process the route of Nord Stream and will connect is complex, involving high-pressure the Russian Baltic Sea coast with the The report expands on many years liquefaction of gas at the point of export. German Baltic Sea coast. The route of Nord Stream research, field studies Specialised gas-liquefaction, shipping crosses the exclusive economic zones and surveys. In fact, the previous and re-gasification technologies are also of Russia, Finland, Sweden, Denmark Nord Stream report constituted one necessary. Each part of the process and Germany, as well as the territorial of the most significant analyses of the involves significant energy loss, as well as waters of Russia, Denmark and Germany. Baltic Sea ecosystem and the seabed further carbon dioxide emissions. along the pipeline route – greatly contri- Nord Stream 2 is committed to delivering buting to scientific understanding of this Planning the pipelines a pipeline that meets the highest special ecosystem. Through Nord Stream and Nord Stream 2, international standards for safety, more than 100 million euros have been invested so far in environmental impact studies and public consultations to Nord Stream Route Nord Stream 2 Route FINLAND ensure that the design and the routing Territorial waters border Exclusive Economic Zone border Midline between of the pipeline through the Baltic Sea Denmark and Poland minimise any environmental or social Landfall Narva Bay impact. NORWAY ESTONIA

SWEDEN

Selection of the optimal route was RUSSIA considered against three main LATVIA DENMARK criteria, with safety being a constant, Nord Stream 2 LITHUANIA will largely overarching concern. The ﬁrst criterion is follow the RUSSIA route of the environmental, and focussed on avoiding BELARUS Lubmin near Greifswald existing or minimising any impact on protected or GERMANY POLAND Nord Stream sensitive designated areas, or areas with Illustration indicative only system.

19 | | Nord Stream 2: A natural gas pipeline to Europe

BUILDING AN UNDERSEA HIGHWAY

At a glance the technology is extensively in use, a coating consisting of three layers of rigorous certification system has been polyethylene is applied to prevent Constructing an underwater created to ensure that all procedures are corrosion. Each pipe also receives a final pipeline is a major undertaking, carried out to a high standard. coating of reinforced concrete enhanced and Nord Stream 2 will draw on with iron ore. This concrete coating adds expertise from around the world. What is commonly referred to as “the weight to the pipeline, so that it remains Pipeline” actually consists of two parallel stable on the seabed and gives it added An international certification pipelines. Each pipeline will be made protection. body will oversee and test the up of about 100,000, 12-metre pipe sections, which are welded together Welding and pipe laying pipeline, to ensure that it meets out at sea and lowered to the seabed by Individual pipes are welded to the the highest quality standards. special pipelay vessels. These vessels pipeline in an automated process on are equipped to assemble and lay pipes the pipelay vessel. Once completed, around the clock, so that each vessel these welds are tested and the results pipeline is a significant large- can build up to three kilometres per day. are reviewed by a quality control scale infrastructure project. Each completed pipeline will be about team, before being inspected by an Hundreds of engineers work 1,230 kilometres in length, but it will be independent certification agency. A on the planning and design, built in sections, which are then joined in As the pipelay vessel moves, the pipe at pipe production, storage and coating a process known as a “tie-in”. gradually exits the ship in a continuous yards, and on specialised vessels to motion, curving downward through the make the pipeline a reality. The pipes water until it reaches the seabed. A steel Nord Stream 2 pipes will be produced at structure (stinger) protruding from the The basic technology for constructing plants in Germany and Russia, and have vessel supports the descending pipeline offshore pipelines has been developed a constant internal diameter of 1,153 to avoid buckling. over the last 40 years. The designers and millimetres and a wall thickness of up to engineers responsible for Nord Stream 2 41 millimetres. The insides will receive To prevent collisions with other ships, have advanced these procedures an epoxy-based, high-gloss coating a three-kilometre exclusion zone will through Nord Stream and on major as an antifriction measure to increase surround each pipelay vessel as it projects around the world. Because the system’s flow capacity. An external proceeds on its course. Coast guards

1 2 3 FORMING STEEL TRANSPORT CONCRETE Foundries in Germany and Russia After inspections, finished COATING form special steel into round pipes, sections are then transported via each 12 metres long. Pipes are rail to concrete coating yards. Iron-enriched concrete provides added coated to withstand conditions on protection and weight to help stabilise the seabed. the pipeline when on the seabed.

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6 WELDING AND SEALING Pipe sections are welded together with an automated welding process and the welded joints are then inspected. Then the welded joint area is coated externally to protect against corrosion and lowered from the pipelay vessel to the seabed.

will also be informed about vessel movements. Once the various completed sections of the pipeline have been linked into a continuous string, the entire system is tested thoroughly prior to commission. Once the pipeline passes examination, it is filled with gas and pressurised for transport. 5 PIPELAY VESSEL Monitoring the flow The pressurised gas enters the system in Pipe sections are delivered to the pipelay vessel out in Russia and exits in Germany. Pressures the open sea, and welded and flows within this undersea gas onto the end of the pipeline highway are monitored constantly. as a consecutive process. The vessel moves at the rate Engineers oversee operations, and of about three kilometres they can take direct control over the per day. pipeline in the event of irregularities of any kind. All operations will comply with Each vessel can established international standards, “ and are subject to certification. The pipeline will be maintained according to build up to 3 km a regular schedule. Periodic inspections of the inside of the pipeline are carried of pipeline per day ” out by a remote-controlled device called a pipeline inspection gauge, or PIG. This device runs inside the length of the pipelines, monitoring the integrity of the material and the exact geometry and position of the lines. When required, visual inspections can also be undertaken on the outside of the pipeline. 4 The Nord Stream 2 Pipeline’s condition SUPPLY BARGE will be evaluated continuously to ensure Fully coated pipe sections safe operation throughout its design life. are loaded from storage yards via crane onto a barge which supplies the pipelay vessel out at sea.

21 | Pipelay vessel design is for illustrative purposes only | Nord Stream 2: Energy for Europe’s Future

PROTECTING A SENSITIVE ENVIRONMENT

At a glance he Baltic Sea is an extraordinary Finland, Germany, Latvia, Lithuania, natural resource which has Poland, Russia and Sweden – The Baltic Sea is an played a vital role in the and it is protected by well-established extraordinary ecosystem development of the culture intergovernmental agreements, reinforced that must be preserved T of northern Europe. It is the largest by strong international collaboration. with care. body of brackish water on the planet, where salt water from the oceans Our commitment to Nord Stream has con- mixes with freshwater, and it is home protect the environment ducted years of research, to many species of plants and wildlife. By increasing the amount of natural gas which demonstrates that a Because of its strategic location as an available to European markets to replace pipeline can be constructed inland sea, it has been an integral part coal, the pipeline will help reduce harmful and operated in harmony of European trade since the Viking Age, greenhouse gas emissions. Transporting with the Baltic Sea connecting western and eastern Europe, the gas underwater prevents the need for environment. Scandinavia, and Russia. Today, it is additional shipments by seagoing tankers, home to some of the busiest shipping at a time when increasing ship trafﬁc routes on earth. Millions depend upon is already a cause for concern among Nord Stream 2 will build the Baltic Sea for their livelihood and ecologists. While the pipeline brings clear on this body of research for recreation, so preserving its delicate environmental beneﬁts, it is also important and continue to protect the ecosystem is a high priority. Fortunately, to be prepared for – and mitigate – any environment. many organisations exist to protect this possible risks associated with laying a important environment. Nine countries gas pipeline on the seabed. How can border the sea – Denmark, Estonia, Nord Stream 2 minimise the impact of the

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“More than 55,000 line kilometres were assessed by research vessels, which conducted surveys and underwater investigations to determine a safe and environmentally friendly route ”

fresh water through rainfall, rivers and streams, stemming from a catchment area that is four times that of the sea itself. Salt water flowing in from the North Sea does not mix thoroughly with PROTECTING the less dense water waiting in the Baltic, creating a horizontal boundary called the halocline. The halocline acts as a cap, and oxygen levels in deeper areas A SENSITIVE ENVIRONMENT decline as a result. As a consequence, only a limited number of animal and plant species can thrive in the Baltic Sea’s brackish environment. Some species of marine mammals, plankton, fish, marine plants and other creatures that have pipeline on spawning areas for fish, seal pipes are designed to withstand a lifetime adapted to these brackish conditions are breeding grounds or migratory patterns of service on the seabed. Areas known under threat from the increased pollution for birds? Could munitions dump sites to contain munitions can be largely caused by the rapid economic growth be disturbed, and what impact will mine avoided, or conventional munitions of the Baltic countries, according to clearance have? To answer these and identified on the route may be removed. HELCOM, the Baltic Marine Environment many other questions, Nord Stream 2 is A maintenance scheme ensures that Protection Commission (or Helsinki now building upon the comprehensive the pipeline will be operated to high Commission). Extensive research has ecological studies that Nord Stream standards of safety and environmental helped increase scientific understanding undertook. The results of several years of compatibility – as we are currently seeing of these worsening conditions, including monitoring show that the pipeline can be with the existing Nord Stream system. climate change, the effects of chemical constructed and operated with minimal run-off, salinity and sediment, toxic disruption to the local environment, and A sensitive ecosystem contamination, and the introduction of well within the accepted international The Baltic Sea is an extraordinary and harmful non-native species. HELCOM standards for environmental protection. sensitive ecosystem, due in part to its has made it a priority to combat While the construction phase can cause limited exchange of water with the North excessive nutrient loads from agricultural some temporary disruption, this can Sea. The narrow and shallow waters of and industrial run-off. be managed through carefully planned the transitional Sound and Belt waters mitigation measures. around Denmark means the same water Given the sensitivity of the Baltic Sea – along with all the organic and inorganic ecosystem, Nord Stream placed a high The pipeline route was planned to matter it contains – can remain in the priority on environmental responsibility, minimise the impact on nature reserves Baltic for up to 30 years. At the same and this commitment has now been important to wildlife. In addition the time, the Baltic is replenished with lighter taken up by Nord Stream 2.

23 | | Nord Stream 2: Energy for Europe’s Future

BUILDING ON A STRONG HERITAGE ord Stream 2’s priority is to measures and standards to minimise build and operate its pipeline human errors in construction, pipeline safely. Our comprehensive safety and reliability. The procedures N and far-reaching risk governing all risk and safety assessments assessment will adhere to industry codes have been developed through international and standards. Risk assessment is an agreements. Under the control of DNV GL, ongoing task – potential scenarios and the Nord Stream 2 project also meets all impacts will vary over the life cycle of the International Maritime Organization risk- project and Nord Stream 2 will continue assessment criteria. Risk assessments are Terrestrial life to monitor and act on these changes. made to cover every aspect of every stage of the project. Nord Stream 2 is working with experienced marine, offshore and The work is allowed to take place only if engineering partners to ensure that a risk is finally assessed as acceptable. high safety standards are met during One of the main objectives of an design, construction and operation. Our environmental assessment is to identify procedures ensure that risk exposure to means to reduce risks and the expected third parties, people, the environment impacts of a construction project. To this Infauna and equipment remains As Low as end, so-called mitigation measures have Reasonably Practicable (ALARP). For a been integrated into the design of the risk to be considered ALARP, it must be project in response to impacts that are possible to demonstrate that the effort anticipated to be of significance. involved in reducing the risk further would be grossly disproportionate Environmental monitoring to the benefit gained. These levels Nord Stream has been monitoring the of risk are calculated in accordance impact of the pipeline on the environment with DNV GL codes, standards and for several years. All monitoring results recommended practices, which are have confirmed the findings of the designed to safeguard life, property and environmental impact assessments and Light the environment. DNV GL is a respected, verified that any construction-related independent Norway-based foundation impacts were minor, locally limited and Noise working across a number of industrial predominantly short term. An opinion Air emissions sectors. Nord Stream has received poll conducted for Nord Stream in 2012 annual recognition from DNV GL for its shows that the majority of neighbouring DENMARK safe and responsible practices in pipeline residents (61 percent) see industrial operation since the pipeline opened in waste as the chief threat to the waters of 2012. Nord Stream 2 intends to follow the Baltic, followed by shipping in these footsteps and meet the highest (25 percent). By contrast, only one in international standards. 15 people (7 percent) were concerned about the impact of the pipeline Health, safety and construction. The survey assessed environmental protection public sentiment in Germany, Sweden, To ensure the safety of staff and Poland, Finland, Denmark, Estonia, contractors, Nord Stream 2 and its Latvia, Lithuania and Russia. partners will continually train them in health, safety and environmental protection

| 24 Nord Stream 2: Energy for Europe’s Future |

Environmental monitoring activities undertaken for the existing Nord Stream Pipeline BUILDING ON A Nord Stream has built a pipeline system in harmony with the Baltic Sea. The results of extensive environmental sustainability studies and monitoring show there are few signiﬁcant or lasting environmental impacts from the construction or operation of the pipeline. Nord Stream 2 will build on the environmental monitoring and environmental protection measures undertaken STRONG HERITAGE by the existing Nord Stream Pipeline.

Vyborg

RUSSIA

FINLAND

Turbidity air

Landscape and ESTONIA topography

Onshore soil

Epifauna

LATVIA Turbidity vessel

LITHUANIA

Chemical warfare agents

Conventional munitions

Sediment RUSSIA

Mussel Turbidity sensors cages

Exclusive economic zone border Light SWEDEN Territorial border Seabed bathymetry

POLAND Bottom currents

Lubmin Inﬂow

GERMANY

Landscape and Chemical Turbidity air Sediment Seabirds Air emissions topography warfare agents Seabed Fish and Conventional Turbidity vessel Onshore soil Noise bathymetry ﬁsheries munitions Bottom Turbidity sensors Mammals Epifauna Light HELCOM currents Cultural Mussel cages Inﬂow Terrestrial life Infauna Public opinion heritage

25 | | Nord Stream 2: Energy for Europe’s Future

NORD STREAM 2 IN NUMBERS

About 2035 55 bcm 93 % 120 bcm of additional imports need to be secured for the EU in the next two decades, owing to Utilisation of the existing Nord Stream decreasing production Pipeline has increased every year and lower output from since it opened in 2011. It is now close other exporters to Europe. to delivering its full capacity of

55 bcm per year.

Generating electricity from natural gas produces up to CO² 50 percent 50% less CO than from coal. ²

6% Russian natural gas Nord Stream 2 will have makes up about capacity to transport 55 bcm of natural gas 6 Prozent per year, enough to of the EU’s total supply some energy consumption. 26 million European households.

| 26 Nord Stream 2: Energy for Europe’s Future |

More than

55,000 line kilometres Each pipe were sailed by research joint will be 12 metres vessels to conduct 24,000 kg long and weigh 24 tonnes with surveys and underwater concrete coating. investigations to determine a safe and environmentally friendly route.

Baltic Sea region countries The pipeline will be approximately are involved in consultations 9 about the pipeline. It will will run through the 1,230 kilometres exclusive economic zones long, and will run from or territorial waters of five the Russian coast 1,230through km countries – Russia, Finland, the Baltic Sea, Sweden, Denmark and Germany. reaching landfall in Germany.

Ø 1,153 mm The pipelines will have a constant Russia has some internal diameter of 1,153 millimetres EU RUSSIA 47,800 bcm (48 inches) and a wall thickness of up of natural gas reserves – to 41 millimetres. the largest natural gas reserves in the world. up to 41 mm NORWAY

Nord Stream 2 will require around 200,000 coated steel pipes laid on the seabed. Each pipeline is carefully tested for safety and quality. 200,000

x 200,000 Our values

Energy security Delivering reliable and economic energy infrastructure

Safety Fulﬁlling the highest standards for safe and reliable operations

Environmental protection Providing environmentally friendly and sustainable supply infrastructure

Nord Stream 2 AG Baarerstrasse 52 6300 Zug Switzerland [email protected]

@NordStream2 www.nord-stream2.com

Picture Credits Nord Stream AG: p.1, pp.4 / 5, pp.14 / 15, pp.18 / 19 Nord Stream 2 AG: pp.2 / 3, pp.4 / 5, pp.10–13, pp.22 / 23, p.28 Thomas Eugster: pp.6 / 7, p.11 C3 Visual Lab: p.5, pp.8 / 9, pp.16 mc-quadrat OHG, Berlin: pp.4 / 5, pp.8 / 9, p.16, p.19, pp.20 /21 pp.26 / 27 Shutterstock: pp.24 / 25

Published June 2018 This brochure is printed on Forest Stewardship Council ® (FSC ®) certiﬁed paper. FSC sets the standard for environmentally and socially responsible forest management. Paper carrying the FSC label is certiﬁed by independent sources to assure that it comes from forests managed to meet the social, economic and ecological needs of present and future generations.