Gas for Europe

277 Gas for Europe : Once a Vision, Now a Reality

he Nord Stream project was hugely ambitious in its aims and historic for the further development of Europe’s energy mix. It was comple- ted on time, on budget, and without permanently impacting the envi- ronment. The vision is a reality. The Nord Stream Pipeline system is fully operational and is capable of transporting up to 55 billion cubic metres (bcm) of every year to the European energy grid. TIt would take 50 traditional coal-fired power plants or 40 nuclear power plants to provide an equivalent amount of energy.

The pipelines will be a crucial element in Europe’s energy supply for at least the next 50 years. And they represent another important milestone in the evolution of a long-term, mutually beneficial relationship between Europe and Russia in the vital field of energy and energy supply. Nord Stream is proud to have played a role in this historic development. From the European Union’s (EU) perspective, the new, secure source of gas provided by Nord Stream contributes to the region’s econo- mic and environmental policy objectives. Policymakers increasingly see natural gas as playing a valuable role in complementing renewable sources of energy. And just as Europe needs a reliable source of gas from Russia to meet its goals, Russia also relies on gas customers in Europe for income.

First direct connection to Russian reserves Only a few years ago, Europe’s supply of natural gas was at risk. Reserves in the North Sea were declining, and supplies had become unreliable at times. Political and economic disputes involving the transit countries of Russian gas through the land-based pipelines meant that millions of Europeans had been left, temporarily, without gas. The completion of the Nord Stream Pipelines means that Europe has a direct line to Russia’s vast energy reserves for the very first time. The arrival of this additional route, involving no transit countries, does much to improve energy security in Europe.

The project shows how it is possible for an undertaking of this scale to be organ- ised and successfully completed when a unique set of conditions is met. The first condition was a predictable and steady demand. This is underscored by the increasing number of electricity plants in Europe that are powered by gas.

Chapter 8 Gas for Europe 279 Already, about half of all new electricity facilities in Europe use gas. The other con- dition was a blue-chip line up of shareholders: OAO , BASF SE/ Holding GmbH, E.ON Ruhrgas AG, N.V. Nederlandse Gasunie, and GDF SUEZ SA. They are some of the most experienced gas companies in Europe, each with dec- ades of knowledge about the sourcing, transporting, and marketing of gas. Their commitment to the Nord Stream vision helped make the pipelines a reality.

The completion of the twin system is an enormous accomplishment in every way. This is well documented in the preceding chapters. The pipelines are bringing ad- ded capacity to Europe. Meanwhile, Russia, a full member of the World Trade Org- anisation, has the opportunity to broaden its business relationship with Europe with the completion of the Nord Stream project. Both sides have sought for decades to broaden this relationship. The commitment is important because, by every forecast, Europe’s need for gas is growing. A study by Cambridge Energy Research Assoc- iates (CERA) confirms the European Union is bound to import more and more gas to keep factories running, homes heated, and cities and communities functioning. CERA predicts that Europe’s natural gas imports will increase by at least 20 per- cent by 2030, although the increase could be as high as 46 percent. Gas from the Nord Stream Pipelines alone cannot meet this increasing demand. This is one rea- son Nord Stream has been asked to investigate bringing more Russian gas to Eu- rope through the . Given the success of Nord Stream, and the consider- able body of knowledge now available about conditions in the Baltic Sea, another pipeline built alongside the existing system could provide a solution.

Gas is essential to meeting climate goals Demand for gas is growing for both economic and environmental reasons. The economic reason is to sustain growth. A drop-off in energy supply threatens In Europe, wind power has been expanding considerably, and this trend is set to continue. Some 32 percent of new power capacity installed in the European Union (EU) since 2012 has been wind-based. Up to half of all electricity produced in the EU by the middle of the growth. This can be best seen in India, where delays in expanding its electricity grid century could be produced from wind, according to the European Commission’s Energy Roadmap 2050. are among the reasons cited for the slowdown of its giant economy. The environ- mental reason is related to the status of natural gas as the most climate-friendly of all fossil fuels. Using gas to produce electricity creates about 50 percent fewer emissions per kilowatt-hour than using coal. Replacing only 10 percent of the EU’s coal-generated power production with gas-generated power production would cut carbon dioxide emissions by some 120 million tonnes each year. Numbers such as these are important for the EU to meet its obligations under the Kyoto Protocol, the international climate accord of 1997, when 15 EU nations pledged to reduce green- house gas production by 8 percent in the period between 2008 and 2012.

Though the Kyoto pact expired at the end of 2012, Europe remains committed to the process. One of the reasons is that it has an established plan for reducing car- bon emissions. In December 2011, the European Commission adopted its “Energy Roadmap 2050.” This is now the basis for developing a long-term energy strategy for the region. The roadmap outlines the EU’s commitment to reducing greenhouse gas emissions by 80 to 95 percent below 1990 levels by the year 2050. The Com- mission expressly acknowledged the importance of gas in transforming Europe’s energy systems in the short and medium terms.

The completed twin Nord Stream Pipelines play a modest but important role in this process. By the conclusion of this book, Nord Stream hopes to have demonstrated that the company shares the same environmental goals as the people of Europe and their policymakers in Brussels and in national capitals. The company has also shown that it has the financial resources and technical expertise to realise these goals in an economically efficient and environmentally safe manner.

Nord Stream has signalled its willingness to build on its track record and unique knowledge of the region and the Baltic Sea to provide an expanded transport sys- tem for Russian gas should it be required. But for now, Nord Stream looks forward to maintaining its commitment to increasing energy security in Europe both by op- In the five years up to 2013, photovoltaic panels made up 50 percent of all newly installed power capacity in the EU – ahead of all other power generation technologies. Over three-quarters of global solar power capacity in 2011 was located in Europe. The European Commission’s erating the existing pipelines and by sharing the knowledge it has gained with all Energy Roadmap 2050 predicts that by mid-century 10 to 16 percent of all electricity produced in Europe could come from solar. those who share the same goal. •

Chapter 8 Gas for Europe 281 Gas Treatment Unit This unit at the Portovaya Compres- sor Station facility treats gas before it enters the Nord Stream Pipeline system. It removes condensate or gas hydrates, which occur under certain pressure or temperature conditions, and can dehydrate up to 170 million cubic metres of gas per day. After the gas has been treated, it flows into the compressor area before being fed into the Nord Stream Pipelines. Facts & Figures: Shareholding companies OAO Gazprom is the largest supplier of natural gas in the world, Production operates in the British and Norwegian North Sea, Rus- All about Nord Stream accounting for approximately 15 percent of world gas production. sia, and North Africa. Alongside gas production and procurement, It was established as a joint stock company in 1993 and is partly the company‘s infrastructure shareholdings help Europe achieve a owned by the Russian state (50.002 percent). Core activities include high degree of supply security. In partnership with other companies, exploration, production, transportation, storage, processing, and E.ON Ruhrgas is investing in efficient, technologically advanced gas marketing of hydrocarbons as well as generation and marketing of pipeline systems to link Europe with new and existing gas fields. heat and electric power. Gazprom controls approximately 70 per- cent of Russian gas reserves, produces 78 percent of all Russian N.V. Nederlandse Gasunie is a European gas infrastructure com- natural gas, and generates 17 percent of the electricity in Russia. pany. Its network ranks among the largest high pressure gas pipe- The company is a leader in the construction and operation of pipe- line grids in Europe, consisting of over 15,000 kilometres of pipeline lines. It controls a 161,700-kilometre-long pipeline network, which in the and northern . The company offers transports roughly 660 bcm of natural gas every year. transport services via its subsidiaries in the Netherlands and Ger- many and also offers other gas-related services, for instance, in the Wintershall Holding GmbH specialises in energy and is a wholly field of gas storage and LNG. The company is the first independent owned subsidiary of BASF SE, the world‘s leading chemical compa- gas transport provider with a crossborder network in Europe and Shareholders Our responsibility ny. Wintershall, with its headquarters in Kassel, Germany, has been aims for the highest standards in safety, reliability, efficiency, and active in the exploration and production of crude oil and natural gas sustainability. The Gasunie network forms the core of what is called Nord Stream was dedicated to building definition of the optimum route through the in various parts of the world for more than 80 years. In Europe, the the northwest European “gas roundabout.” 9 its pipelines safely and now to operating Baltic Sea complied with these strict re- company trades and sells natural gas and is also an important gas supplier on the German and European market with its subsidiaries GDF SUEZ SA develops its businesses around a model based on 9 them safely. To achieve this, Nord Stream quirements, which were also upheld during works with experienced partners to ensure construction. These rigorous standards will WINGAS and WINGAS TRANSPORT. Wintershall is now Germany‘s responsible growth to take up today‘s major energy and environ- the highest safety standards. Both the continue to be met throughout the opera- largest producer of crude oil and natural gas. In its exploration and mental challenges: meeting energy needs, ensuring the security % 15.5 technical design of the pipelines and the tional life of the twin pipelines. production activities, Wintershall deliberately focuses on selected of supply, combating climate change, and optimising the use of core regions where the company possesses a wealth of regional resources. The Group provides highly efficient and innovative solu- and technological expertise. tions to individuals, cities, and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation, 51 15.5 Nord Stream’s contribution to the EU E.ON Ruhrgas AG is a major investor-owned energy company. as well as unique expertise in four key sectors: liquefied natural and the Baltic Sea states Within the E.ON Group operating worldwide, E.ON Ruhrgas in gas, energy efficiency services, independent power production and , Germany, is responsible for the global gas business. E.ON environmental services. The Group is listed on the Brussels, Lux- Ruhrgas is Germany‘s gas importer with the broadest portfolio of embourg, and Paris stock exchanges and is represented in the main OAO Gazprom The Nord Stream natural gas pipelines rep- Europe has the security of the privately suppliers. The company receives its gas from several countries, international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx resent a vital addition to the infrastructure financed Nord Stream project. Ever since BASF SE/Wintershall Holding GmbH among them Russia and Norway. E.ON Ruhrgas has been receiving 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone that will bolster the European Union’s (EU) Line 1 of became operational in November E.ON Ruhrgas AG natural gas from Russia for 37 years. E.ON Ruhrgas Exploration & and ECPI Ethical Index EMU. energy security for the next 50 years and 2011, Nord Stream has provided a fixed link N.V. Nederlandse Gasunie beyond. The twin pipelines also contrib- between the European gas transmission GDF SUEZ SA ute to meeting EU climate change goals. system and some of the world’s largest Whereas other major gas infrastructure gas reserves in Russia. Gas began flowing Shareholders’ Committee projects are still only in the planning phase, through Line 2 in October 2012.

Financing Alexei Miller, Vlada Rusakova, Gerhard Schröder, Dr Rainer Seele, Klaus Schäfer, Deputy Chairman of the Member of the Board and Chairman of the Share- Chairman of the Board Chairman of the Board A safe supply of energy for Europe Board of Directors and Head of Strategic Devel- holders’ Committee and of Executive Directors of Management of E.ON Chairman of the Man- opment at OAO Gazprom former Chancellor of of Wintershall Holding Ruhrgas AG agement Committee of the Federal Republic GmbH Nord Stream provides an additional north- loans from over 30 international banks 70 OAO Gazprom Nikolay Dubik, of Germany Paul van Gelder, ern route to supply 55 billion cubic metres providing 70 percent. In the planning Member of the Manage- Dr Bernhard Chairman of the Exe- % (bcm) of gas to the European Union (EU) phase, Nord Stream set new standards of Alexander Medvedev, ment Committee and Dr Harald Schwager, Reutersberg, cutive Board and CEO annually, helping the EU to improve its en- transparency and international environ- Deputy Chairman of the Head of Legal Depart- Chairman of the Super- Member of the Board of of N.V. Nederlandse ergy security by diversifying its gas supply mental collaboration on transboundary Management Committee ment at OAO Gazprom visory Board of BASF SE Management, E.ON AG Gasunie 30 routes. The twin pipelines will help meet a environmental impacts under the Espoo of OAO Gazprom and and Member of the Board large part of the expected gas shortfall of process. Nord Stream brought together all Director General of OOO of Executive Directors of Gérard Mestrallet, between 211 and 232 bcm a year by 2030, of the nine Baltic Sea states in one of the Gazprom Export BASF SE Chairman of the Manage- as they are capable of transporting enough most complex international environmen- ment Committee and gas to supply 26 million households in tal consultations ever undertaken. Before CEO of GDF SUEZ SA 30 percent financed by Europe each year. Nord Stream provided construction and operational permits were the five shareholders of the consortium this key energy infrastructure at no cost to granted, Nord Stream’s meticulous plans European taxpayers: the consortium’s five were examined and approved by the au- 70 percent financed by commercial loans from over shareholders provided 30 percent of the thorities of all five countries through whose 30 international banks 7.4 billion euro investment, with commercial waters it would pass and their neighbours.

Chapter 8 Nord Stream from A-Z 285 Nord Stream Staff Directors

Matthias Warnig Matthias Warnig Dr Dirk von Ameln Vladimir Borovik Paul Corcoran Ruurd Hoekstra Henning Kothe Ulrich Lissek Jens D. Müller Jean-François Plaziat Dr Werner Rott Sergey Serdyukov Managing Director Permitting Director Deputy Technical Director Finance Director Deputy Project Director Project Director Communications Director Deputy Communications Director Deputy Technical Director Deputy Project Director Technical Director Operations and Dispatching Construction Operational Maintenance and Engineering Engineering

Matthias Warnig was appoint- Dirk von Ameln joined the com- Vladimir Borovik joined the com- Paul Corcoran joined the com- Ruurd Hoekstra joined the com- Henning Kothe joined the com- Ulrich Lissek joined the com- Jens D. Müller joined the com- Jean-François Plaziat joined Werner Rott joined the com- Sergey Serdyukov joined the ed in March 2006 by the North pany in 2006. Formerly, he was pany in September 2008. Be- pany in 2006, after serving as pany in 2009. Before that, he pany in 2006 in the role of pany in 2009, arriving from pany in 2006. He has wide- the company in 2011. From pany in 2006. Prior to that, he company in 2006. He is a former European Gas Pipeline Com- Director of the Technical Divi- fore that, he served as Project Finance Director at Wintershall was with Shell International as a Commercial Director, and was the German retail and tourism ranging experience in develop- 2006, he was a Deputy Director served as Head of the Depart- Director General of OOO Len- pany, the forerunner to what sion of E.ON Gaz Romania, Director at the Blue Stream GmbH in Germany. He has project engineer in the compa- promoted to Project Director company, the REWE Group. He ing communications program- for the South-East regional unit ment of Technical Controlling transgaz (now OOO Gazprom Dr Dirk von Ameln Vladimir Borovik became Nord Stream in October and a member of its board of Pipeline Company. From 1994, worked for the BASF Group, ny’s Exploration and Produc- in 2009. Formerly, he was Head worked at Deutsche Telekom mes for energy and infrastruc- of GRTgaz, the main French at WINGAS, negotiating major Transgaz St. Petersburg), and that year. From 1990 to 2006 he management. From 1999 to he held the position of Deputy in various positions in the areas tion unit. He worked for Shell of Controlling for investments from 1993 to 2006, where he ture clients, and has worked as transmission system operator. projects including Südal and from 1988, he was Head Eng- was at , where 2004, he was Manager Pipelines Chief of the Operation, Servicing of financing, accounting and in Oman and the Middle East, and cost centres at E.ON Ruhr- was Head of Communications a Project Manager for many in- Before that, he held the post Speicher Haidach. From 1998, ineer of Uralintergazstroy in he held various positions, most and Materials for Ruhrgas AG, and Spare Parts Department at controlling in the United King- and was Project Director for gas AG in Germany. He also beginning in 2003. During his ca- ternational public relations net- of Deputy Director of the Na- he was in the strategic planning Perm, Russia. Early in his ca- recently Chairman of the Board after working for Shell Interna- Gazprom in Moscow. Borovik dom, , and Germany. the Gronigen gas field renova- worked as a Management Con- reer as a journalist, he worked in works, serving clients such as tional Gas Dispatching Centre department at the Wintershall reer, he worked on Russia’s of Directors. Warnig, who had tional Gas in London. Von Ameln began working for Gazprom Corcoran completed his studies tion and compression project. sultant in a variety of industries various positions at “Kölnische British Gas, RWE, Suez Lyon- at GDF SUEZ in Paris. He earn- Group. Rott received his doc- Dombarovka-Orenburg gas several functions in the govern- studied mining science at the in 1974, and has a degree in in civil engineering at Liverpool Hoekstra studied electrical for A.T. Kearney. Kothe has a Rundschau” and “Die Welt.” He naise, ABB, Vivendi, Vattenfall, ed an engineering degree in torate in 1990 from the Depart- pipeline. Serdyukov specialised ment of the German Democratic Aachen University of Technol- mechanical engineering from University, UK. He is a fellow of engineering and information degree in industrial engineering studied geography and history, and Wintershall. He studied pol- marine technologies at ENSTA ment of Thermodynamics and in automation and telecommu- Paul Corcoran Ruurd Hoekstra Republic, studied at the Institute ogy, Germany. He received his the Oil and Gas Academy in his the Chartered Institute of Man- technology at the HTS in Leeu- from the Technical University in with a minor in geology at the itical science, with an emphasis and specialised in oil and gas Heat Transfer from the Univer- nications at the Novocherkassk of Economics in Berlin. doctorate in 1989. hometown of Ufa, Russia. agement Accountants. warden in the Netherlands. Berlin, Germany. University of Bonn, Germany. on foreign affairs in Germany. at ENSPM. sity of Paderborn, Germany. Polytechnic Institute, Russia.

Employees

Henning Kothe Ulrich Lissek The following is a list of names of those employees of Nord Stream AG who have worked with the project for more than a year. Even though we have put together this list with the utmost care, it might be that we have overlooked someone. In this event, please accept our apologies.

Adrian, John Bodmer, Michèle Casuso, Sabie Dukarevich, Dina Gerber, Carla Hinder, Aksana Kittilä, Anu Lugovina, Olga Muir, James Osipova, Olga Reddy, Louise Schetinina, Maria Stief, Elizabeth Van Dyk, David Wobbel, Bernhard Aebischer, Jörg Böhm, Martina Chernitskikh, Maxim Ghisetti, Alessandro Hizsak Archer, Christine Kläusler, Christian Lvov, Artem Mullen, Anthony Osmakov, Alexei Renaudie, Thierry Schiller, Nicole Stief, Markus Vasilyeva, Irina Aitchison, Robert Bonnell, Simon Chundokov, Murat Ehrler, Patricia Gjedrem, Trond Hoekstra, Ruurd Klimenko, Oleg Müller, Jens D. Richards, Tim Schmalstieg, Markus Stoelzel, Christina Vasin, Igor Yarovoy, Igor Andermatt, Thomas Bonnier, Anne Céline Cora, Claudiu Ermoshkin, Leonid Goehr, Petra Hovinga, Jan Pieter Knauf, Sebastian Mackenbach, Heike Müller, Karin Pachniuk, Iwan Rijkers, Ron Schmidt, Klaus Stoilchev, Mihail Veysalov, Vugar Yusufov, Vitaly Volobuyeva, Kateryna Jens D. Müller Jean-François Plaziat Andersson, Nicklas Borovik, Vladimir Corcoran, Paul Ewert, Bernd Gorodnov, Sergey Hunziker, Peter Kolmakova, Iraida Magliocco, Tamara Müller, Ulrich Panchenko, Sergei Rimensberger, Corina Schümann, Kay Stoll, Jette Andersson, Sven Olof Brand, Paul Gossen, Norbert Kothe, Henning Mans, Martin Müller-Eversbusch, Mayke Pekkola, Tapio Rivet, Nicolas Seiler, Manfred Strahl, Fedor Von Ameln, Dirk Zakharov, Oleg Annen-Benson, Diane Brendel, Dieter Dalay, Hermie Feygin, Boris † Grabner, Sabine Johnson, Garry Kube, Jan Marinov, Marin Perevedentseva, Anna Röllin, Hansruedi Selvi, Andrea Suenneke, Nadine Vork, Arvo Zakoryukin, Pavel Antener, Markus Brünner, Claudia Davidov-Pilgram, Vitali Frame, Michael Griffiths, Anthony Joullié Dardier, Geneviève Martin, Thomas Nasonov, Alexey Plaziat, Jean-François Rott, Werner Serdyukov, Sergey Sundelin, Minna Vorobiev, Mikhail Zhartun, Ksenia Arendt, Heinz Brunnschweiler, Lukas De Filippi, Alessandro Frame, Robert Lange, Jens Massny, Peter Neziri, Valbona Podgorbunskiy, Konstantin Sethi, Manvinder Sutton, Eann Voronov, Andrey Zheldakov, Alexander Auf der Maur, Paula Burnyashev, Alexander De Groot, Cor Frey, Rebekka Haag, Alexander Kaech, Barbara Leifland Holmström, Tora Mattle, Caterina Nowack, Georg Porter, Mervyn Salonen, Tiina Shubin, Izosim Vorontsova, Natalia Zirnig, Werner Bussmann, Daniel De Loor, Ellen Haelg, Bruno Kashirov, Artem Liem, Susan McKay, Julian James Nowak, Simoné Preston, Chris Sänger, Klaus Smith, Marc Teismann, Irene Zöllner, Anja Backens, Irina Dobberstein, Björn Gaillet, Nicholas Hanitzsch, Maud Amelie Kernl, Susanne Liner, Hans McLean, Brian Nussbaumer, Corinne Protasov, Vladislav Sanova, Zalina Smyth, Peter Traber, Marcel Waich, Gertrud Badaoui, Fatiha Caguioa, Joel Duchesne, Pierre Gallus, Thorsten Harris, Susan Khokhlov, Alexander Lissek, Ulrich Medvedev, Konstantin Nussbaumer, Marianne Putzi, Liliana Sarakhan, Mikhail Stadler, Nicole Trafelet, Patrick Warnig, Matthias Dr Werner Rott Sergey Serdyukov Badel, Dagmar Canepa, Gunilla Dücker, Jörn Garrecht, Ralf Hausheer, Olivia Kiefer-Andersson, Samira Loosen, Jutta Meshchankin, Evgeny Sass, Sebastian Steiner, Ruth Turnbull, Andrew Watkins, John Baturina, Elena Casirati, Marco Dudley, Frank Geelhoed, Fausta Haynes, Michael Kinscher, Elke Lopez, Giuseppe Mihaylov, Petar Oleshchuk, Mikhail Rath, Peter Schälchli, Manuela Steiner, Stefanie Tye, Steve Weiss, Michael

Chapter 8 Nord Stream from A-Z 289 crossing procedures: Consultations with G also Radio Frequency Identification (RFID). detect any sign of corrosion, while a device S-curve: As the pipeline was lowered to the Glossary owners of active cables to be crossed in Gas Transportation Agreement (GTA): isolation and emergency shutdown on the PIG measures the internal dimensions seabed, it formed an “S” shape, which pre- order to reach mutual agreements covering Nord Stream’s agreement with Gazprom Ex- valves: Valves used to separate the pipe- of the pipeline to detect buckling, its precise vented it being damaged during installation. rights and obligations, etc. port which governs the transportation tariffs. lines from the landfall facilities in case of an position, size, and coordinates. sea floor morphology: The form and struc- cultural heritage: Cultural tradition, some- German landfall facility: Refers to the emergency. They immediately interrupt the PIG trap: Section of the pipeline through ture of the sea floor. thing that is passed from preceding genera- entire installation at of the onshore flow of gas. which the PIG is removed or inserted. seabed survey: Survey of the seabed tions. Includes shipwrecks and other remains and offshore Nord Stream facility, and the pipe tracking system: System using an in- including investigations of the soil and bottom of archaeological interest. gas receiving terminal of the connecting L dividual Radio Frequency Identification (RFID) sediments, water currents, sea temperatures A pipelines, OPAL and NEL. See also Lubmin landfall facilities: The installations at the chip fitted into the end cap of each pipe seg- and wave parameters. Affected Parties: The states with territorial D landfall facility. locations where the offshore pipelines surface ment, enabling identification and tracking. sediment sampling program: The program waters and/or Exclusive Economic Zones design temperature: The highest/lowest gradiometer array: A 6.7-metres-wide and meet land. See also Lubmin landfall facil- pipeline integrity: The ability of the sub- for sampling solid fragments of inorganic or (EEZ) adjacent to those of the Parties of possible temperature profile to which the twelve-sensor array mounted on a Remotely ity; Portovaya landfall facility. marine pipeline system to operate safely organic material dispersed by underwater Origin under the terms of the Espoo Conven- equipment/component or system may be Operated Vehicle (ROV) which detects any Lubmin landfall facility: The installation and withstand the loads imposed during the operations including munitions clearance and tion. The Affected Parties of the Nord Stream exposed during installation and operation. ferrous (iron-based) metals on the seabed as located in Lubmin, Germany, where the pipe- pipeline lifecycle. pipe laying. pipeline project are Estonia, Latvia, Lithuania, digital terrain model: A digital model or 3D well as buried objects that may have sunk in lines reach land and where gas is prepared polyethylene coating: Exterior polyethylene side-scan sonar (SSS): A type of sonar and Poland. All Parties of Origin are also Af- representation of a terrain’s surface, includ- the soft sediments. and tested before being transported through coating to combat corrosion. system that can be used to create an image fected Parties. ing underwater terrain. gravel placement: Method of providing OPAL and NEL for onward transmission polyurethane infill: Once the weld is of large areas of the sea floor. Nord Stream as-built survey: A post construction survey structural support for the pipelines to rest on through the European pipeline grid. confirmed acceptable, a corrosion-resistant, used it to search for metallic objects in and to confirm the exact location of the pipelines E by placing gravel on the seabed. heat-shrink sleeve is applied around its entire on the seabed during the seabed survey. as they were laid and to evaluate if further EEZ: See Exclusive Economic Zone (EEZ) Gryazovets-to-Vyborg trunkline: Pipeline M circumference. Then, polyurethane foam is stinger: Attaches to the stern of the pipelay stabilisation is necessary. electromagnetic pipetracking system: linking Unified Gas Supply System of Russia magnetometer: An instrument used for sur- poured into a mould surrounding the weld vessel to support the pipeline when lowered See pipe tracking system. (UGSS) across the Vologda and Leningrad veying the seabed which provides information area. This foam hardens, providing further to the seabed. B emergency shutdown valves: See isola- Oblasts to the facilities at Portovaya Bay. on ferrous (iron-based) materials. protection. sub-bottom profiler: Equipment used in backfilling: Refilling an excavated area. tion and emergency shutdown valves. Gulf of Finland: Easternmost arm of the marshalling yards: After concrete weight Portovaya landfall facility Bay: The instal- seabed surveys that is able to penetrate baseline survey: Provides data against Environmental Impact Assessment Baltic Sea that extends between Finland (to coating, the pipes were shipped by carrier lation in Portovaya Bay in Russia that links the deeply into the material on the bottom of the which every subsequent survey is measured, (EIA): A detailed study of environmental the north) and Estonia (to the south) all the vessels to marshalling yards where they were Unified Gas Supply System of Russia (UGSS) sea showing a cross-section of the mud, silt, enabling evaluation of any changes. aspects of a project. For Nord Stream this way to St. Petersburg in Russia. loaded into the storage facilities. and the Nord Stream pipelines. and bedrock that make up the seabed. bathymetry: The term originally referred was carried out in a transboundary context multi-beam echo sounder: Equipment for pre-lay survey: Although the seabed was to the ocean’s depth relative to sea level, governed by international law (see Espoo H surveying the seabed to provide a detailed surveyed during the route planning phase, a T although it has come to mean “submarine Convention) and by national legislation in the HELCOM (Helsinki Commission): picture of the contours of the seabed and of pre-pipelaying survey was performed before telescope design: See pressure-segmented topography,” or the depths and shapes of countries concerned. Governing body of the “Convention on the objects lying on it. pipeline installation to confirm past data and design underwater terrain. epoxy coating: Interior epoxy coating to Protection of the Marine Environment of the to ensure pipeline safety. territorial waters: As defined by the United benthic fauna and flora: Collection of or- reduce friction. Baltic Sea Area”. Ensures the environmental N pressure-segmented design: The pipe- Nations Convention on the Law of the Sea, ganisms living on or in sea or lake bottoms. ESMP (Environmental and Social protection of the Baltic Sea region through Natura 2000: European Union-wide network lines were designed in three sections with coastal waters extending at most twelve brackish water: The mixture of seawater Management Plan): Plans established at intergovernmental co-operation between the of nature protection areas established under progressively thinner walls because the pres- nautical miles from the baseline (usually the and fresh water. the start of each project phase to ensure Baltic states and the European Community. the 1992 Habitats Directive. sure would differ from one end of the pipeline mean low-water mark) of a coastal state. The buffer gas: After the pipeline has been pres- compliance with all permit obligations and HRE (gas heating and reducing equip- nominations: The quantity of gas entering to the other, starting at 220 bar in Russia, territorial sea is regarded as the sovereign sure tested, drained and dried, it is comple- with Nord Stream’s environmental and social ment): Used at the gas-in stage, when the the system upstream and the amount ex- about 200 bar midway, and ending at 100 territory of the state. tely filled with nitrogen, which serves as a commitments. pipelines are filled with buffer gas. The unit tracted downstream. The client’s specification bar in Germany. Reducing the wall thickness Trans-European Network for Energy safety buffer between air and gas. Espoo Convention: Sets out the obliga- heats the gas to prevent hydrates from form- of how much gas they want to flow into the also reduced the amount of steel used. (See (TEN-E) guidelines: Issued by the Euro- tions of signatory states to notify and consult ing and to reduce pressure. pipelines in Russia and how much they want telescope design.) pean Commission with a view to prioritising C each other on all major projects that are likely HS-ESMS (Health, Safety, and Environ- to remove in Germany. Project Information Document: Describes and facilitating gas and electricity transport cable crossings: Areas in which the pipe- to have a significant impact across national mental and Social Management Sys- the technical background and possible envi- infrastructures and improving and diversifying line crosses a sea cable. See crossing pro- borders. See also Affected Parties; Parties tem): Sets out the environmental and social P ronmental impacts of Nord Stream. Produced EU gas sources and routes. cedures. of Origin. requirements for the Nord Stream project, Parties of Origin: The states with Exclu- in accordance with the Espoo Convention by turbidity: The suspension of sediment in cage reinforcement: Steel cage placed Exclusive Economic Zone (EEZ): A sea providing the framework for the standards, sive Economic Zones (EEZs) and/or territo- the responsible environmental authorities of the water, in turn leading to the possible re- around pipes serving as reinforcement for zone over which a state has special rights planning, and procedures for every stage of rial waters in which a project is constructed the Parties of origin to notify each other and suspension and relocation of contaminants. the concrete coating. See also concrete over the exploration and use of marine the project. under the terms of the Espoo Convention. the Affected parties of Nord Stream’s plans. weight coating (CWC). resources, formalised by the Third United hyperbaric tie-in: Underwater welding of The Parties of Origin of the Nord Stream U capacity per line: The maximum amount Nations Convention on the Law of the Sea the pipeline sections on the seabed. pipeline project are Russia, Finland, Sweden, R Unified Gas Supply System of Russia of gas that can be received or contained in in 1982. and Germany. Russia is a signa- Radio Frequency Identification (RFID): (UGSS): The world’s largest gas transmission one pipeline. I tory but not a party to the Espoo Convention. Each pipe segment was fitted with an system, encompassing gas production, pro- CAPEX: Capital expenditures. F installation corridor: An subsea corri- However, Russia acted as a Party of Origin individual RFID chip in its end cap, enabling cessing, transmission, storage, and distribu- certification: Process of ensuring that a firing line: The central assembly line where dor, 15 metres wide, along the route of the where its national legislation allowed. identification and tracking. tion facilities. system is compliant with industry standards. the 24-metre double joints were connected proposed pipeline, surveyed and scanned for permitting process: The process of ap- concrete weight coating (CWC): To add to the pipeline end and welded together by objects as small as ten centimetres. plying for and obtaining permits for pipeline S W extra weight and to ensure stability on the semi-automatic machines. intelligent end caps: End caps fitted to all construction. S2S (ship-to-ship) system: Method of wall thickness: The specified non-corroded seabed, the steel pipes were coated exter- flow capacity: The maximum volume of gas pipes, with sensors and chips that provided PIG (pipeline inspection gauge): transferring the pipes delivered by sea from pipe wall thickness of a pipe, which is equal nally with concrete. The concrete coating that can be received or contained. a tamper warning and enabled each pipe to Maintenance tool that is sent through the Mukran to a transport ship situated on the to the minimum steel wall thickness plus the doubles the weight of the pipes. be tracked at any location at all times. See pipeline, propelled by the gas pressure, to opposite side of the pier. manufacturing tolerance.

Nord Stream Storybook Glossary 291 (island); Gotland, Sweden; Gulf of pipe welding 148, 149, 150–151, 164 crustaceans 228 gravel placement 230 history and planning 32–33 Index Finland) retrofitting 102–103 CTD (conductivity, temperature, depth) instru- logistics 133 Nord Stream 284–285 Baltic Sea Pipeline Link see Ostee Pipeline cement supplies 109, 111 ments 79, 214 munitions clearance 51, 61, 63, 79, 227 operations and management 270–271 Anbindungs Leitung (OPAL) certification 261, 269 cultural heritage sites 44, 54–55, 57, 219 offshore/onshore pipelines compared 21 politics and permits 82–83 Baltic States, permitting process 72 chemical munitions 45, 51, 78–79, 225 (see also shipwrecks) route selection 27, 56 procurement and financing 110–111 Balticconnector 26 Cirelli, Jean-François 240 CWC see concrete weight coating (CWC) soil management 137 research and routing 58–59 Bank of Tokyo-Mitsubishi UFJ 114 Citi 114 underwater noise 227, 233 fail-safe mechanisms 241 banks, participating 114 clams 223, 228 D environmental consultations 41, 43, 72–75, Far Samson (vessel) 133, 137, 158, 184 Note: page numbers in italics refer to figures. Barclays Capital 114 Coastal Thunder (vessel) 159 Danish Hydraulic Institute 44 78–81 fauna 209, 228–229 Barent Zanen (vessel) 158 cofferdams 137, 186–187 Data and Information Fund 217 environmental impact assessment (EIA) 24, fish species 208, 228 A baseline surveys combined capacity 21, 239 DB Schenker Rail 124 44, 69, 207 marine mammals 79, 208, 217, 219, 227, Affected Parties (Espoo Convention) 67, environmental 24, 207, 209, 211 Commerzbank 93, 106–107, 114 de-icing of pipes 134–135, 163 environmental monitoring 44, 207–209, 211, 229, 233 69, 83 pipeline 247, 259, 260, 261, 269 communications programme 69, 71, 76 DekaBank 114 226–227, 232–233 terrestrial 213 aggregate supplies 109, 111 BASF/Wintershall 21, 23, 113, 285 facts and figures 83–87 demand for natural gas 17, 32, 34, 35 effect of munitions clearance 60, 61, 63 (see also benthic lifeforms) Albrecht, Peter 94 bathymetry 29, 44, 56, 217 communications systems see Control and Denmark effects of gravel placement 230 feasibility studies 26, 27, 41 Alferj, Domenico 162–163 Bay of 168–169 Communications System Danish sector 54 facts and figures 58, 230–231 Fillon, Francois 240 Allseas 141 cofferdam 137, 186–187 company formation and start-up 23, 25, 94 permitting process 72, 73, 80–81 (see also fish monitoring; water quality film, interactive 86 (see also Solitaire) soil management 137, 217 compression (start of operations) 239 (see also (island)) monitoring) finance plan 91–94, 106–107, 112–115 Ameln, Dr Dirk von 68, 71, 73, 75, 288 trenching 137, 158, 188, 231 Compressor Station Portovaya see Portovaya design pressure 58, 270 environmental protection sites 22, 59, 209, facts and figures 110, 284 anchor blocks 257 wreck found in 42, 45, 54, 59 Bay Compressor Station design temperature 245, 270 217, 221, 226–227 financial crisis of 2008 91, 113 anchor corridors 44, 60 Bayern LB 114 concrete weight coating (CWC) 108–109, Det Norske Veritas (DNV) 95, 247, 261, environmental regulations 67, 209 Finland anchor lines 172 BBVA 114 111, 122, 145 268–269 (see also permitting process) Finnish sector 55, 230–233 Andersson, Samira Kiefer 211 benthic lifeforms 216, 217, 219, 233 cage reinforcement 109, 111, 122 Deutsche Bahn AG 114, 125 Environmental Resources Management 44 Gulf of Finland 45, 51, 78–79, 230 anti-corrosion coating 108 bird populations 221, 223, 227, 229, 235 coating plants 123, 125 dewatering 141, 182–183 environmental standards 261, 269 permitting process 72, 73, 75, 78–79 anti-friction coating 108, 145 blue mussels, water quality indicators 220, conductivity, temperature, depth (CTD) dewatering PIGs 183–184, 250, 251 environmental surveys 43–44, 207, 209, 211 firing line (pipeline assembly) 174 Apking, Jan-Philip 94 221–223 instruments 79, 214 DEXIA 114 E.ON AG (later E.ON Ruhrgas AG) 21 fish monitoring 208, 209, 212–213, 218–219, as-laid surveys 247, 259 Blue Stream 21 conservation areas see environmental digital terrain model 44, 56–57 E.ON Ruhrgas AG 15, 21, 23, 113, 285 233 asset management 245 BNP Paribas 114 protection sites dive support vessel 176, 178, 200 epoxy coating 108 fish species 208, 228 Asset Management Policy 267 Boehm, Roland 106–107 construction 119–121 diving bell 181, 202–203 ERM 111 fishing interests 59, 72–73, 81 awards 4, 94, 133, 245 Bonnell, Simon 41, 43, 44, 45, 49, 51, 57 facts and figures 198–199 diving operations 177–179, 200–203 ESMP (Environmental and Social Manage- Flaa, Einar 177–179, 179, 180 Bornholm (island) landfall facilities 137 DNV (Det Norske Veritas) 95, 247, 261, ment Plan) 211 flat-bottomed pipelay vessel see Castoro B munitions dumps 49, 51 pre-laying process 45, 133, 137 268–269 Espiranto Santo Investment 114 Dieci backfilling 137, 231 routing around 43, 81 project management 119, 121 DoF Asa 44 Espoo Convention 41, 44, 67, 72, 81 flooding and pressurising 141, 182–185, 250 vessels 256 Borovik, Vladimir 239, 241, 245, 247, 287 (see also gravel placement; pipe laying; double-gate valves 194–195, 256, 267, Espoo Report 24, 69, 70, 71 flora BACTEC International Limited 60 Bremen trenching) 271, 275 Estonia, permitting process 72 terrestrial 213, 219 Baltic Gas Interconnector 26 pipe transshipment 96 construction debris 250 double-jointing 174, 175 Euler Hermes 93, 113, 114 (see also benthic lifeforms) Baltic Pipe 26 buckling detection 250, 261 construction schedule 79, 173 dredging see trenching EUPEC Pipecoatings SA 97, 108, 129, 133 flow capacity 21, 239 Baltic Sea budgetary planning see finance plan consultation process 41, 43, 72–75, 78–81 Dubik, Nikolay 285 European Gas Conference Award 94 Forsa 76 bathymetry 29, 44, 56, 217 buffer gas 192, 256 contracts with suppliers 111 dynamically positioned vessel 73, 140, 172 European gas pipeline network 21, 31, 245 Fortis Bank Nederland 114 benthic lifeforms 216, 217, 219, 233 Bugsier 9 (vessel) 159 environmental monitoring 211 DZ Bank 114 European Union (EU) Fortum 20, 21 cultural heritage sites 42, 44, 54–55, 57, materials for concrete coat weighting benefits of project 279, 284 Fugro OSAE 44 59, 219 C 108–109 E energy strategy 281 funding requirements 112–115 ecosystem 41, 207, 209 cable crossings 27, 51, 59, 158 pipe coatings and logistics 97, 108, 129 ECA Euler Hermes 93, 113 engagement with 69, 71 environmental considerations 27, 56, 79, cage reinforcement 109, 111, 122 pipe making 95, 97, 100, 110 ECAs (export credit agencies) 93, 107, 113 gas connection options 17, 20, 27 G 207–209, 217, 227 Caja Madrid 114 pipelaying 95, 97, 101 economic benefits 110, 125 gas imports 34 gas deliveries 239, 245 environmental protection sites 22, 59, Cambridge Energy Research Associates pipeline repairs 259 ecosystem 41, 207, 209 gas infrastructure 17, 20, 31 gas heating and reducing equipment (HRE) 209, 217, 221, 226–227 (CERA) 281 Control and Communications System EEZs (Exclusive Economic Zones) 41, 67 natural gas demand 17, 32, 34, 35 256 fauna and flora 227, 228–229, 235 capacity, pipeline 21, 239 241, 245 EIA (environmental impact assessment) 24, renewable energy 280 gas metering 245 fishing interests 59, 72–73, 81 capital expenditures (CAPEX) 110, 112 facts and figures 270 44, 69, 207 support for project 21, 30–31, 34 gas operating temperature 245, 270 munitions detection and clearance 45, carbon emissions reduction Control Centre, Zug see Zug Control Centre electromagnetic pipe-tracking system 267 EUROPIPE GmbH 95, 96, 100, 110 gas preheaters 273 49–51, 56–57, 59, 60–63, 79 logistics 198 Corcoran, Paul 91, 93, 287 emergency response plans 245, 247 Evans, Sverker 226–227 gas pressure 58, 239, 245, 247, 270 pipeline route 20, 21, 35, 36–37, 46–47 natural gas benefits 17, 33, 281 corporate governance 94–95 emergency shutdown valves 193, 245, 246, Exclusive Economic Zones (EEZs) 41, 67 gas transport capacity 21, 239 salinity 228 carrier vessels see pipe carrier vessels corrosion detection 250, 261 256, 266, 271, 275 export credit agencies (ECAs) 93, 107, 113 Gas Transportation Agreement (GTA) 107 shipping interests 51, 59, 73 Casirati, Marco 137, 141 corrosion protection 108, 145, 175 Environmental and Social Management Plan exterior polyethylene coating 108 gas treatment facility 245, 247, 282–283 shipwrecks 42, 44, 45, 54–55, 57, 59, 210 Castoro Dieci 137, 147, 158, 168–169 costs see capital expenditures (CAPEX) (ESMP) 211 external diameter 198 Gascade Gastransport GmbH 245, 265 surveys and investigations 28, 43–44, Castoro Sei 46, 102–103, 147, 154–155, 158, County Museum of Gotland 43 environmental considerations Gasuni see N.V. Nederlandse Gasunie 56–57 166–167, 227 crane vessels 159, 173 carbon emissions reduction 17, 33, 198, F gauge plates 185 water flow 235 daily reporting 164 Credit Agricole 114 281 facts and figures gauging 185 in winter 18–19 PIG launcher 170 Credit Suisse 114 dredging 217, 231 construction and logistics 198–199 Gazprom (see also Bay of Greifswald; Bornholm pipe laying 119, 165, 174–175 crossing agreements 27, 59 flooding and pressurising 141 environment and monitoring 230–233 early involvement 15, 21

Index 293 experience of offshore pipelines 21 harbours 111, 120, 125, 129, 138–139, 144, isopods 228 Mediobanca International (Luxembourg) SA (NEGP) 23, 25 pipe carrier vessels 120, 138, 140, 174 gas treatment facility 245, 282–283 145–146, 198–199 Ivanov, Sergei 240 114 North European Gas Pipeline (NEL) 247, 272, uploading pipes 142, 143 Gryazovets-to-Vyborg trunkline 241, 254 Health, Safety, and Environmental and Social Medvedev, Alexander 285 273 pipe coatings natural gas exports to EU 32 Management System (HS-ESMS) 211, 217 K Medvedev, Dmitry 240 North Transgas Oy (NTG) 15, 17, 20, 26, anti-corrosion 108 shareholding 113, 285 HELCOM (Helsinki Commission) 41, 59, 209 Karlskrona, Sweden 127, 132, 138–139, 145 Merkel, Angela 240 28, 34 anti-friction 108, 145 Unified Gas Supply System of Russia helicopters 161, 175 kfw IPEX-Bank 114 Mestrallet, Gérard 285 Novak, Alexander 240 pipe de-icing 134–135, 163 (UGSS) 16, 241 Helsinki Commission (HELCOM) 41, 59, 209 kicker line 253 metering station 245 Nowack, Dr Georg 137 pipe delivery 98, 120, 124, 132, 145–146, 199 (see also Portovaya Bay Compressor history and planning 15–37 Kothe, Henning 23, 25, 94, 95, 97, 288 Miller, Alexei 21, 240, 285 NTG (North Transgas Oy) 15, 17, 20, 26, pipe dimensions 198 Station) alternative routes 20, 21, 35 Kotka, Finland, concrete coating plant 122, mine clearance see munitions clearance 28, 34 pipe edge bevels 148, 174, 201 Gazprom Export 245 connecting business with Baltic authorities 125, 133, 140, 146 MINELCO AB 108 N.V. Nederlandse Gasunie 23, 113, 285 pipe elevator 174 Gazprom Transgaz St. Petersburg 245 26–27 Mizuho 114 Nychas, Anastasios 71 pipe end caps 136, 199 GDF Suez S.A. 23, 113, 285 European support for project 21, 30–31, L MMT (Marin Mätteknik AB) 41, 44, 56–57 pipe handling frames (PHFs) 178, 201 Gelder, Paul van 240, 285 34 landfall facilities see Lubmin landfall facility; molluscs 227, 228 O pipe laying 45, 147, 156–157, 162–163 geodetic equipment 252 facts and figures 32–33 Portovaya landfall facility mooring systems 172 OAO Gazprom see Gazprom facts and figures 199 Geological Survey of Sweden (SGU) 227 gas industry expert’s perspective 30–31 landscape monitoring 207, 213 (see also dynamically positioned vessel) Oettinger, Guenther 240 process 174–175 geophysical surveying equipment 28–29, 44 Nord Stream formation and startup 23–25 Latvia, permitting process 72 Moscow shareholders’ meeting 97 offshore/onshore pipelines compared 20, 21, S-curve 100, 173 geophysical surveys 28, 43 surveys and investigations 28–29 lift bags 201–202 Mukran, Germany, concrete coating plant 31, 34 sequence 121 geotechnical surveys 28 (see also route development) Lissek, Ulrich 68, 69, 72, 288 122, 125, 133, 145 OMK 95, 100, 110 pipe production 95–97, 96, 99–100, 110, 111 German landfall facility see Greifswald Hoburgs Bank 221, 227 Lithuania, permitting process 72 Mülheim onshore monitoring 213, 219 pipe segments, facts and figures 198 Receiving Terminal (GRT); Lubmin landfall Hoekstra, Ruurd 119, 121, 288 loan guarantees 113 EUROPIPE plant 96 onshore pipelines 257, 267, 275 pipe storage 125, 129, 146, 258 facility Holcim 109 Lofts, Graham 106–107 Müller, Jens D. 25, 288 onshore soil monitoring 207, 213 pipe tracking system 199, 267 German Logistics Award 133 HRE (gas heating and reducing equipment) logistics 121–133, 144–147 Müller, Ludwig von 125, 129, 131, 133 OPAL (Ostee Pipeline Anbindungs Leitung) pipe wall thickness 58 German/Russian agreement 21, 23 256 facts and figures 198–199 multi-beam echo sounders 29, 44, 57 247, 272, 273 pipe welding see welding Germany HS-ESMS (Health, Safety, and Environmental map 111 munitions clearance 45, 51, 59, 60–63, 79 operating pressure 239, 245, 247 pipelay vessels 98, 147, 158, 159, 172 German sector 54, 231 and Social Management System) 211, 217 recording of vessel movements 231 environmental considerations 51, 61, 63, operations 239–275 retrofitting 101 permitting process 75 hydrography 28–29, 56–57, 79, 214, 230 long-tailed ducks 221, 223, 227, 229 79, 227 compression (operational startup) 239 scale model 74, 84 (see also Bay of Greifswald) hyperbaric tie-ins 141, 177, 200–203 Lubmin landfall facility 137, 262–266, munitions dump sites 45, 49, 59, 63 Control and Communications System stingers 104–105, 156–157, 173 Gjedrem, Trond 43, 44, 45 272–275 munitions surveys 45, 49–51, 59 241, 245, 270 (see also Castoro Dieci; Castoro Sei; global gas reserves 33 I under construction 194–195 mussels, water quality indicators 220, facts and figures 270–271 Solitaire) Goot, Fokko van der 217 IEA (International Energy Agency) 34 local operational facilities 241 221–223 nominations process 241, 245 pipeline flooding, cleaning, and gauging 141, Gossen, Norbert 94, 95, 99, 100, 101 infauna 216, 217, 219, 233 pulling pipeline ashore 137, 189, M/V Supplier (vessel) 159 Zug Control Centre 241, 244, 245, 247 182–185, 250 Gotland infographics 190–191 (see also maintenance programme; safety Pipeline Information Tour 74, 83–87 County Museum 43 environmental monitoring 232–233 (see also Bay of Greifswald) N systems) Pipeline Inspection Gauge (PIG) 74, 185, 247, Gotland, Sweden finance plan 112–115 Lubmin warehouse 258 Natixis 114 ordinance clearance see munitions clearance 248–249, 250–251, 261 munitions sites 49 history and planning 34–37 Natura 2000 sites 59, 221, 226–227 Oskarsson, Ola 56–57 pipeline inspections 259, 260, 261, 270 mussels collection 223 logistics 144–147 M natural gas Ostee Pipeline Anbindungs Leitung (OPAL) pipeline integrity management 247, 261, 267 pipe laying 162 Lubmin landfall facility 272–275 magnetometers 28 benefits 17, 33, 281 247, 272, 273 safety standards 268–269 route planning 35 munitions clearance 60–63 Magnusson, Marina 221, 223 demand 17, 32, 34, 35 outlet gas pressure 247 pipeline plough 133, 137 security concerns 74 pipeline construction 172–175 Maimone, Salvatore 93 reserves 15, 17, 32, 33 Oxford Institute for Energy Studies 30 Pipeline Repair System (PRS) 267 Slite 120, 126–127, 129, 146 Portovaya landfall facility 254–257 maintenance inspections 74, 250, 260, 261, nature reserves see environmental protection pipeline route see route development government loan guarantees 107 public communications programme 84–87 270 sites P pipeline sections gradiometer arrays 29, 39, 44, 48, 56–57 underwater tie-ins 200–203 maintenance programme 259, 267 NEGP (North European Gas Pipeline Com- PAM (passive acoustic monitoring) 63 telescope design 44–45, 58, 141, 269 gravel placement 45, 73, 133, 173, 203 ING 114 (see also repair methods) pany) 23, 25 Parties of Origin (Espoo Convention) 67, 69, welding 141, 177, 200–203 environmental monitoring 230 inlet gas pressure 247 maintenance team 259 NEL (North European Gas Pipeline) 247, 272, 71, 82 PL3 (pipeline plough) 133 vessels 158 inlet gas temperature 270 Mäkinen, Anita 78–79 273 passive acoustic monitoring (PAM) 63 planning see history and planning Greifswald Receiving Terminal (GRT) 241, in-service buckling 250, 261 Marin Mätteknik AB (MMT) 41, 44, 56–57 Neste (merged with Imatran Voima to form peg spacers 122 Plaziat, Jean-Francois 245, 247, 259, 261, 264, 272 inspections see environmental monitoring; marine mammals 79, 208, 217, 219, 227, Fortum) 15, 17, 20 permitting process 27, 67–82 267, 289 Greifswalder see Bay of Greifswald maintenance inspections 229, 233 noise control 75, 213 facts and figures 82 ploughing see trenching grey seals 208, 229 installation corridor 43 Marine Monitoring AB 221, 223 noise monitoring 213, 227 (see also crossing agreements) Poland, permitting process 72 Groot, Cor De 101 Institut für Angewandte Ökologie (Institute for Markit iTraxx Europe Senior Financials index nominations process 241, 245 PeterGaz B.V. 43, 44 political considerations 20, 69, 71, 281 Gryazovets-to-Vyborg trunkline 241, 254 Applied Ecology) 44 115 non-destructive weld testing 175 PetrolValves S.R.L. 266 polyethylene coating 108 GTA (Gas Transportation Agreement) 107 intelligent end caps 136, 199 marshalling yards 75, 126–127, 130–131, Nord Stream AG PHFs (pipe-handling frames) 178, 201 polyurethane fill-in/ infill 175 Gulf of Finland 45, 51, 78–79, 230 Intelligent Pipeline Inspection Gauge (PIG) 144, 145–146 company formation and start-up 23, 25, 94 PIG (Pipeline Inspection Gauge) 74, 185, 247, Pomeranian Bight 231 see Pipeline Inspection Gauge (PIG) materials, pipeline 108–109 company structure 23, 25 248–249, 250–251, 261 pontoons 154, 175 H interior epoxy coating 108 facts and figures 111 Nord Stream project origins 4, 15, 17 PIG launchers 170, 171, 183–185, 253 Portigon (previously WestLB) 114 Haelg, Bruno 207, 209, 217 internal diameter 58, 198 transport of 133 Nordea 114 PIG receivers 184 Portovaya Bay Compressor Station 241, Hanko, Finland 125, 128, 130–131, 134–135, International Energy Agency (IEA) 34 McLean, Brian 133, 141 Nordeuropäische Erdgasleitung (NEL) 247, PIG traps 256, 261, 266, 271, 275 242–243, 254–257, 282–283 146 Intesa SanPaolo 114 Mecklenburg-Western 22, 42, 272, 273 double-gate valves 194–195, 256, 267, Portovaya landfall facility 137, 196–197, hapa core sampler 225 iron ore supplies 108, 111 54, 125 Norra Midsjöbanken 221, 226–227 271, 275 254–257 harbour porpoises 208, 219, 229 isolation valves 245, 246 media coverage 68, 76–77, 82 North European Gas Pipeline Company pigging see PIG (Pipeline Inspection Gauge) local operational facilities 241

Index 295 position monitoring 252 repair strategy 247, 259, 267 seabed interventions 45, 137, 230–231 suppliers 111 Sea (UNCLOS) 67, 80 pulling pipeline ashore 137, 196–197 repair vessels 267 (see also gravel placement; trenching) (see also contracts with suppliers) ports (harbours) 111, 120, 125, 129, 138–139, research vessels see survey vessels seabed reinstatement 137, 217, 231 supply chain 123, 129 V 144, 145–146, 198–199 reserves of natural gas 15, 17, 32, 33 seabed sediment see sediment dispersion; survey corridors 41, 43 valves 271 post-lay process 137 Reutersberg, Bernhard 240, 285 sediment sampling program survey vessels 28, 28–29, 48, 52–53, 159 kicker line 253 (see also backfilling) RFID (Radio Frequency Identification) 199 seabed surveys 43–44, 56–57, 207, 209 operational inspections 260, 261 relief 273 post-lay surveys 175 rigid inflatable boat (RIB) 63 seabed topography 28, 44, 56–57, 213 surveying equipment 28–29 (see also isolation valves; shutdown valves) (see also as-laid surveys; baseline surveys) risk assessments 45, 79 seabirds 221, 223, 227, 229, 235 surveys and investigations Van Veen Grab 215 power cable crossings 27, 51, 59 rock placement see gravel placement seal scrammer 51, 63 route planning 28, 43–44, 56–57 velvet scoters 229 pre-commissioning 141, 250 RoRo traffic 129 seals 79, 208, 229 (see also environmental surveys; mainte vent stacks 257 pre-lay process 45, 137 Rosen Integrity Solutions 250, 261 SeaTerra 51, 60 nance inspections; munitions surveys) vessels 156–157 (see also gravel placement; trenching) Rott, Dr Werner 123, 125, 133, 289 SEB 114 Swedegas 15 (see also pipe carrier vessels; pipelay pre-lay survey 175 route development 20, 21, 35–37 security, national 74 Sweden vessels; survey vessels) press converage see media coverage facts and figures 58–59 sediment dispersion 73, 221, 226–227 environmental monitoring 221–223, 226 vibrocorer 29 pressure testing 182–183, 184–185, 250 final route 36–37, 46–47 sediment sampling program 211, 215, 217, permitting process 73–74 video, interactive 86 pressure wave monitoring 213, 227 route optimisation 43, 58 224–225, 230, 231 Swedish sector 54 visual inspections 261, 267 pressure-segmented design 44–45, 58, 141, route surveys 43–44, 56–57 Seele, Dr Rainer 285 Swedish Agency for Marine and Water Man Voronov, Andrey 261 269 facts and figures 58 segmented pressure design 44–45, 58, 141, agement (SwAM) 226 PriceWaterhouseCoopers (PWC) 94, 114 finds along the route 54–55 269 W procurement 95, 97, 99–101 (see also munitions surveys) Sellering, Erwin 240 T warehousing 258 facts and figures 110–111 ROVs see remotely operated vehicles (ROVs) Selvi, Andrea 259, 267 Tali, Pietro F. 119 Warnig, Matthias 3–5, 25, 95, 119, 240, 287 (see also contracts with suppliers) Royal Bank of Scotland (RBS) 93, 114 semi-submersible pipelay vessel “telescope” design 44–45, 58, 141, 269 water currents 235 project costs see capital expenditures Ruhrgas AG (later E.ON Ruhrgas) 15 see Castoro Sei TEN-E (Trans-European Network for Energy) water quality indicators 220, 221–223 (CAPEX) Rusakova, Vlada 285 Serdyukov, Sergey 17, 20, 21, 23, 247, 289 21, 31 water quality monitoring 211, 214, 215, 216, Project Finance Award 94 Russia SGU (Geological Survey of Sweden) 227 terrestrial flora and fauna 213, 219 224–225, 227, 230 project information document 41, 67 gas connections with EU 17, 20, 279, 281 shareholders 23, 113, 284, 285 tether management system (TMS) 50, 61, water turbidity 211, 230 project management 119, 121 natural gas production 32 Shareholders’ Committee 285 184 weld testing 175 protected areas see environmental natural gas reserves 15, 17, 32, 37 shipping interests 51, 59, 73 Thomsen, Thomas 73 welding 148, 149, 150–151, 152, 153, protection sites participation in the environmental shipwrecks 42, 44, 45, 54–55, 57, 59, 210 TMS (tether management system) 50, 61, 174–175 PRS (Pipeline Repair System) 267 consultations 75 facts and figures 59 184 end of line 192 public communications programme 69, 71, permitting process 74 Shtokman field, Russia 98 transboundary context 67–68, 70, 72 pipeline sections 141, 177, 200–203 76 Russian sector 55 shutdown valves 193, 241, 245, 246, 256, Trans-European Network for Energy (TEN-E) quality assurance/control 121 facts and figures 83–87 Russian landfall facility see Portovaya landfall 266, 271, 275 21, 31 welding plugs 201 public hearings 69, 71, 72, 82 facility side-scan sonar (SSS) 44, 58 transport see logistics WestLB (later Portigon) 114 Putin, Vladimir 21 Russian/German agreement 21, 23 Skandi Arctic (vessel) 141, 159, 176, 178, trawl gear 81 Wieth-Knudsen, Laila 80–81 PWC (PriceWaterhouseCoopers) 94, 114 Rutte, Mark 240 181, 200, 203 trenching 133, 137, 188, 217, 231 wind farms 32, 58, 59, 280 RZB Group 114 Slite, Sweden 120, 126–127, 129, 146 environmental considerations 217, 231 WINGAS GmbH 285 Q SMBC 114 soil management 137, 217, 231 Wintershall see BASF/Wintershall quality assurance/control 121, 122, 136 S Société Générale 93, 114 vessels 158 wire cage reinforcement 109, 111, 122 quays see harbours S2S (ship-to-ship) system 120, 129 soil management 137, 217, 231 Troms Pollux 140, 143 wrecks see shipwrecks SACE S.p.A. 93–94, 113, 114 soil monitoring 213 turbidity of seawater 211, 230 WWF 78, 79 R safety standards 121, 261, 268–269 solar energy 280 Rädeker, Hanne 80–81 (see also pipeline integrity management) Solitaire 79, 140, 147, 159, 160–161, U Z Radio Frequency Identification (RFID) 199 safety systems 241 pipe laying 162–163 UFK (Ungebundene Finanzkredite) 94, 107 Zirnig, Werner 217 Rambøll Management A/S 26–27, 44 emergency response plans 245, 247 pipe loading 142 UGSS (Unified Gas Supply System of Russia) Zug Control Centre 241, 244, 245, 247 RBS (Royal Bank of Scotland) 93, 114 emergency shutdown valves 193, 245, Standard Bank 114 16, 241 receiving terminal (of OPAL and NEL) 241, 246, 256, 266, 271, 275 standards certification 261, 269 ultrasonic testing 175 247, 264, 272–275 relief valve 273 statistics see facts and figures UNCLOS (United Nations Convention on the reef structures 231 Sagitov, Roustam 75 Statoil Repair Pool 259 Law of the Sea) 67, 80 relief valve 273 Saipem S.p.A. 93, 95, 97, 101, 141, 172 Pipeline Repair System (PRS) 201, 267 underwater noise 227, 233 remote monitoring and control 241 (see also Castoro Dieci; Castoro Sei) steel cage reinforcement 109, 111, 122 underwater tie-ins 141, 177, 200–203 remotely operated vehicles (ROVs) 28–29, Sandpiper (vessel) 158 Stern, Professor Jonathan 30–31 underwater welding habitat 141, 178–179, 44, 57, 173 Sass, Sebastian 68–69, 74 stingers 104–105, 156–157, 173 180, 201–202 pipeline inspection 261 Sassnitz-Mukran 111 Stirling, Gunn 247, 268–269 Ungebundene Finanzkredite (UFK) 94, 107, support vessel 38–39, 52–53, 63 scaups 229 storage of pipes 125, 129, 146 113 tether management system (TMS) 50, Schäfer, Klaus 285 storage warehouse 258 UniCredit 114 61 Schmidt, Klaus 123 Strøbæk, Neel 17, 20, 26, 26–27 Unified Gas Supply System of Russia (UGSS) renewable energy 280 Schröder, Gerhard 240, 285 sub-bottom profilers 28, 44 16, 241 repair methods 267 Schwager, Dr Harald 240, 285 submarine pipeline plough 133, 137 United Metallurgical Company see ZAO OMK repair service agreement 267 S-curve 100, 173 Sumitomo 95, 100, 110 United Nations Convention on the Law of the

Index 297 Credits

Editorial oversight F&F/Timeline support Page 208, 003180310666h, Ulrich Lissek, Steffen Hartmann, Mauritius Images Communications Director, Hill + Knowlton Strategies Page 208, 10859222, Fotolia Nord Stream AG Dainius Velykis, Page 245 Nord Stream Jens D. Müller, Hill + Knowlton Strategies Page 247, InterPress (2) Deputy Communications Director, Page 252–253, InterPress (2) Nord Stream AG Chief art director Page 258, Nord Stream (2) Michael Pfötsch, Page 278, 76730761, 9716824, Editor-in-chief Kircher Burkhardt GmbH Shutterstock (2) Michèle Bodmer, Page 280, 42-21467398, Corporate Publishing Manager, Art director 42-24099336, Corbis (2) Thomas Eugster Nord Stream AG Angelika Cords, Photographer Kircher Burkhardt GmbH Creative publishing agency Managing editor Kircher Burkhardt GmbH Swiss photographer Thomas Janet Anderson, Infographics Heiligegeistkirchplatz 1 Eugster has been docu- Freelance editor Ben Kleinberg, 10178 Berlin, Germany menting the Nord Stream Kircher Burkhardt GmbH www.kircher-burkhardt.com Pipeline project since April Project manager 2010. The people behind the Henrieke Neitzel, Illustrations Printer construction and operation Kircher Burkhardt GmbH All illustrations by H. Heenemann GmbH & Co. KG of the pipelines are as much Viktoriamarie Schiffler Buch- und Offsetdruckerei a focus of his photos as the Writers Bessemerstrasse 83–91 technical aspects of the pro- Alessandro Alviani With the exception of: 12103 Berlin, Germany ject. He has been working as Janet Anderson Page 3: Niklas Hughes www.heenemann-druck.de a freelance photographer for Michèle Bodmer Page 121: Niklas Hughes over 20 years, with a key in- Kevin Cote Publisher terest in engineering, as well David Gilliver Photography Nord Stream AG as cultural, travel, and social Jeremy Gray All photographs by Grafenauweg 2, P.O. Box themes. His assignments Chris Hayes Thomas Eugster 6304 Zug, Switzerland have taken him to every Jens D. Müller + 41 41 766 91 91 continent, and his photos are Dave Rimmer With the exception of: www.nord-stream.com published in consumer and Stuart Spear Page 21, Nord Stream corporate magazines around Miriam Widman Page 21, 3918161, Fotolia printed May 2013 the world. Page 40, Bactec Editing/text production Page 42, Nord Stream Janet Anderson Page 44, Nord Stream (2) Michèle Bodmer Page 59, Nord Stream Deanne Corbett Page 66, 95764650, Getty Images Dave Rimmer, Page 72, Nord Stream KircherBurkhardt GmbH Page 74, Nord Stream Page 90, 00000109585885, Proofreading Corbis Germany think global Page 93, Nord Stream Page 120, Nord Stream Editorial support/Distribution Page 138–139, Nord Stream Sabie Casuso, Page 190–191, Nord Stream PA to Communications Director, Page 196–197, Nord Stream Nord Stream AG Page 206, Ingo Arndt