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European firms can invest 950m euros each in Nord Stream 2

Staff Writer |
Nord Stream 2 AG, the operator of construction of new Russian gas pipeline, signed an agreement with Engie, OMV, Royal Dutch Shell, Uniper and Wintershall, envisaging an up to 950 million euros financing by each of the European companies, Gazprom said.

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“Five European companies undertake to provide a long-term financing amounting to 50% of the entire project cost, which is estimated at 9.5 billion euros at the moment.

“The contribution by each of the companies will amount to up to 950 million euros. Gazprom will remain the sole shareholder of project company Nord Stream 2 AG,” the statement read.

Gazprom said that each of the European companies which signed the agreement will open a long-term credit line amounting to 285 million euros and the funds are expected to be used in 2017.

“Credit lines of 665 million euros will be open to cover short-term and long-term financing and guarantees,” the company said. Spending of the funds will depend on future decisions by Nord Stream 2 AG.

The Nord Stream-2 project envisages construction of two lines of a natural gas pipeline with an annual capacity of up to 55 billion cubic meters, running from the Russian shore to Germany under the Baltic Sea.

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