The developer of Russian state-controlled Gazprom's 55bn m³/yr Nord Stream 2 pipeline has restarted works in Denmark's exclusive economic zone, with works on the Danish section of one of its two parallel strings to be completed in late May.
Russian-flagged pipe-laying barge Fortuna has started preparatory work before the line's construction resumes, Nord Stream 2 told Argus. The vessel is scheduled to continue pipe-laying until almost the end of May before resuming pipe-laying in German waters. Works in German waters would continue until at least the end of June.
About 120km of the route is still to be laid in Danish waters. But only 16.5km of one Nord Stream 2 string and 13.9km of the other parallel string have yet to be laid in German waters. If pipe-laying in German waters proceeds at a similar pace to that scheduled for Danish waters, pipe-laying of one of Nord Stream 2's lines could be completed in early July. It could take about two months to dry and test the pipeline and about four weeks to fill the route — based on the same processes followed for the 55bn m³/yr Nord Stream 1 line in 2011 — suggesting at least one of Nord Stream 2's lines could be ready to operate in the fourth quarter of this year. No works are scheduled for the other of Nord Stream 2's lines yet, Danish energy agency DEA told Argus.
Nord Stream 2's two strings are to be equally sized and will run along almost identical routes, suggesting a single line could deliver up to about 27.5bn m³/yr.
Russian-flagged support vessels Murman and Artemis were scheduled to support Fortuna by performing surveying and rock removal works in Danish and German waters. Murman, the Baltic Explorer and other supply vessels were expected to restart works in Danish waters from mid-January.
The US imposed sanctions on Fortuna and its owner, KVT-RUS, last week, but the vessel restarted works regardless.
The completion of the line could reduce Gazprom's reliance on transit through Ukraine. Gazprom delivered 55.9bn m³ to European destinations through Ukraine last year. But the firm's annual bookings under an agreement with Ukrainian state-owned Naftogaz fell to 40bn m³/yr for 2021-24 from 65bn m³ last year. Gazprom has booked additional capacity on a monthly basis at times this winter, but it could have little need to continue these bookings if even one of Nord Stream 2's lines starts operating.
The pipeline's onshore continuation, Eugal, is already being used through a tie-in to Nord Stream 1 continuation Nel. This has delivered about 20bn m³/yr since January 2020, taking up much of the line's capacity. But Eugal's capacity is set to rise to 55bn m³/yr in the second quarter of this year from 30.9bn m³/yr at present, which will allow it to receive well above 27.5bn m³/yr in addition to current deliveries.
But legal aspects related to how Nord Stream 2 will operate have yet to be resolved, which could limit Gazprom's ability to fully use the pipeline's capacity. Germany denied the pipeline derogation from legislation transposing an EU gas directive that would otherwise require Gazprom to grant access to pipeline capacity to third parties and pass operational control to an independent entity for the short pipeline section in German waters. The pipeline's developer has appealed the decision, as well as the EU general court's dismissal of the developer's challenge to the revised 2019 EU gas directive.
