Construction on remaining Nord Stream 2 string to start

Construction on the first parallel string of Russian state-controlled Gazprom's 55bn m³/yr Nord Stream 2 pipeline will resume shortly, after a pause of nearly 15 months, following the restart of works on the other line earlier this year.

The Russian-flagged Akademik Cherskiy will undergo sea trials before laying pipes in Denmark's exclusive economic zone (EEZ), the project developer said. Denmark's government permit body DEA told Argus today that work on the string will start this month.

A Danish maritime authority notice confirms pipe-laying up to September in locations near Borholm Island up to the German border. Two pipe-laying vessels, Akademik Cherskiy and fellow Russian-flagged Fortuna, two construction vessels and other supply vessels will operate in the area.

About 110km of pipe-laying remains in Danish waters and about 28km in German waters, Nord Stream 2 said today. The project operator had earlier detailed that 16.5km of one string and 13.9km of the remaining string required laying in Germany. Vessel tracking software suggests the Fortuna laid about 12km on the route's other string in the last 30 days, equal to about 400m/d.

Nord Stream 2 said before the Fortuna re-starting pipe-laying that around 120km of the Danish route remained.

Both vessels operating in Danish and German waters from May could allow construction to be completed this summer. The Fortuna requires use of anchors when laying pipes, slowing progress compared with pipe-laying vessels with dynamic positioning systems, which may include Akademik Cherskiy.

Appeals against amendments to Nord Stream 2's German permit seek to block the use of anchored vessels in German waters in October-May. But this would not prevent works outside this period. "Everything depends on the [sea] trials," Nord Stream 2 told Argus.

After pipe-laying, the project requires the above-water tie-ins of unconnected pipe sections, as well as design verification of the completed pipeline.

Sanctions fail to halt construction?

Nord Stream 2's continuing construction has bucked US sanctions on Fortuna, suggesting that sanctions may not be able to halt the line's physical construction. But the line could still face difficulties before start-up.

US sanctions had pushed a number of insurers out of the project.

And a number of contractors, including independent certification body DNV GL, wound down verification activities required by permits for the project. Nord Stream 2 had contracted the Norwegian firm to "verify the safety and technical integrity" of the project and to issue a certificate of compliance upon its "satisfactory completion", DNV GL said.

Certification by a third party is required under DEA's permit before pipeline commissioning. This must assure that the pipeline was designed, fabricated, installed and commissioned in accordance with "applicable technical, quality and safety requirements". DEA would then issue a "certificate of conformity", a further permit requirement, before operations could start.

The restart of pipe-laying on both strings suggests that Nord Stream 2 has secured alternative verification and certification services consistent with DEA requirements, given on-board observation of pipe-laying has typically formed part of project operations to date.

The standards requiring certification were developed by DNV GL and held as proprietary by the firm, but other firms can complete certification according to those standards. Scheduled maintenance and inspections are also to be carried out through the project's operational lifetime in accordance with DNV GL's requirements.

The US State Department this week said that further sanctions may be imposed on Russia later this month associated with the poisoning of Russian opposition figure Alexei Navalny. But penalties under the relevant legislation will not affect the project, unlike those under other laws that directly mention the pipeline.

By Paul Martin