Nord Stream 2: The difficult birth of Russia’s gas connection to Germany

Jan 27 (Reuters) – The Nord Stream 2 pipeline is nearing completion after US Secretary of State Antony Blinken called it a “fait accompli†on Monday, saying that the United States is working with Germany to mitigate its effects.

Last month, the Biden government waived sanctions against the company behind the Russian gas pipeline Nord Stream 2 to Germany and its CEO.

Led by Russia’s Gazprom (GAZP.MM) with Western partners, the pipeline, which will double the capacity of the existing Nord Stream 1 (NS 1) connection, has encountered resistance in the European Union.

The United States has said NS 2 is increasing the EU’s dependence on Russia, while NS 2 supporters say the United States is trying to increase sales of liquefied natural gas (LNG) to Europe.

The following are key moments in the development of Nord Stream 2:

2011

November: Gazprom and western partners examine the expansion of the pipeline system by a further 55 billion cubic meters at an estimated cost of 9.5 euros (11.3 billion US dollars).

2015

June: Gazprom, Royal Dutch Shell (RDSa.L), E.ON (EONGn.DE), OMV (OMVV.VI), Wintershall (WINT.UL) and ENGIE (ENGIE.PA) agree on the construction of the pipeline.

2016

March: Eight EU governments raise objections for geopolitical reasons.

2017April: Financing contracts are signed.

2018

January: Germany issues building and operating permits.

2019

January: The US ambassador to Germany says companies are threatened with sanctions.

December: The Swiss-Dutch company Allseas stops laying pipes.

Trump signs defense law with sanctions.

2020

January: Russia aims to start in the first quarter of 2021.

May: Germany’s energy regulator refuses to allow operators to waive EU gas directives.

May: An EU court orders the operators of NS 1 and NS 2 against EU gas regulations.

September 3: There is growing pressure on Berlin to reconsider support after the alleged nerve gas attack on Kremlin critic Alexei Navalny.

September 15: Data show that a Russian ship went to the supply base in Germany.

September 23: The world’s largest group of marine insurers says it will not insure ships involved in NS 2.

Oct 1: Denmark gives NS 2 permission to operate in Danish waters.

October 7: Poland fines Gazprom more than 29 billion zlotys after initiating proceedings in June.

November 4: Gazprom appeals the fine to a Polish court.

November 28: NS 2 plans to finish a 2.6 km stretch in German waters.

December 3: The United States introduces bill aimed at businesses and individuals helping NS2.

December 11th: According to NS 2, the ship Fortuna has resumed work.

22nd Dec .: The Danish Maritime Administration reports pipe-laying work from 15th Jan. Read more

December 24: The Kremlin says new US sanctions may make the deal difficult. Continue reading

Dec 28: NS 2 says they have completed the 2.6 km section in German waters. Continue reading

2021

January 6th: The northern German state Mecklenburg-Western Pomerania decides to set up a foundation to support the completion of NS 2.

Jan 13: The US State Department warns European companies of sanctions.

14.-15. Jan: NS 2 says that pipe laying in Germany will resume on January 15th.

Uniper and Wintershall Dea say they have not received any threats. Continue reading

January 20: Trump imposes sanctions on Fortuna on his last full day in office. Continue reading

Gazprom successfully places an 8-year euro bond worth $ 2 billion, suggesting investors see limited risk.

German environmental associations submit complaints to the BSH maritime supervisory authority, effectively preventing further work in Germany for the time being. Continue reading

January 21: In response to the arrest of Navalny in Russia, the European Parliament passes a resolution calling for the completion of NS 2 to be stopped.

January 24th: Fortuna resumes work in Danish waters. Continue reading

5.2 .: Chancellor Angela Merkel says Germany will “for the time being” stick to its support for the pipeline after Russia has condemned the expulsion of diplomats from Sweden, Germany and Poland.

April 22: Senate Foreign Affairs Committee puts forward bill to put pressure on companies helping build NS2. read more

April 27: The Russian ship Akademik Cherskiy begins laying pipes for the project in Danish waters.

May 19: The US State Department waives sanctions against participants in Nord Stream 2, as this is in the national interest of the US.

May 25: Chancellor Angela Merkel expects further talks with the USA about the Nord Stream 2 project. Continue reading

June 1: Moscow welcomes the US decision not to sanction the pipeline, the Kremlin says. Russia has no plans to stop gas deliveries via Ukraine, reports the Interfax news agency.

June 4: President Vladimir Putin informs an economic forum that Russia has completed laying the first pipeline to Germany.

June 7: Foreign Minister Antony Blinken says completion of Nord Stream 2 is a “fait accompli”, defends US decision to waive some sanctions and promises a response if Moscow tries to use gas as a weapon.

(This story is repositioned to include a falling day in the heading)

Reporting by Tommy Lund and Bartosz Dabrowski in Danzig Editing by Vera Eckert and Barbara Lewis

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