Energy consortium signs financing deal for Nord Stream 2 pipeline
Shell, ENGIE, OMV, Uniper and Wintershall together signed financing agreements with Nord Stream 2 AG, the company responsible for the planning, construction and future operation of the Nord Stream 2 pipeline, Shell announced on April 24.
The 1,220-km pipeline will be able to transport a total capacity of 55 Bcmy of natural gas. It will run from the coast of Russia via the Baltic Sea to Greifswald in Germany, acting as a direct link between Russian reserves and European consumers.
The five energy companies have each committed to provide financing and guarantees for up to 10% of the total cost of the project, which is estimated to be €9.5 B.
Each company will provide a long-term funding facility of €285 MM, expected to be drawn down in 2017. In addition, funds of up to €665 MM will be provided to cover a combination of short and long-term funding and guarantees.
The drawdown of the €665-MM fund will depend on future decisions by Nord Stream 2 AG in respect to the overall financing of the project. Gazprom remains the sole shareholder of Nord Stream 2 AG.
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