UPDATE 2: Amendments to EU gas rules not to affect N Stream-2 terms

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BRUSSELS/ST. PETERSBURG, Nov 29 (PRIME) -- Amendments to the E.U. Gas Directive proposed by the European Commission will not affect the terms and cost of Russia-led Nord Stream-2 gas pipeline project, Paul Corcoran, CFO of the project’s operator Nord Stream 2 AG, told PRIME in an interview on Wednesday.

“No, they will not affect the schedule (of Nord Stream-2 construction), as the Gas Directive is aimed at the pipeline’s operations, and the process of issuance of permits, the process of construction of the pipeline are governed by national laws of Russia, Finland, Sweden, Denmark, and Germany,” Corcoran said.

He said recently the project could receive necessary permits from the five countries by July of next year. He also said the implementation of the project indicates that construction of the pipeline would be finished on time.

Nord Stream 2 AG is ready to fulfill requirements of the Gas Directive if the amendments are introduced, Corcoran said.

Nord Stream 2 AG does not so far change the planned structure of financing of the project, which implies attracting project financing for 70% of its cost, Corcoran also said.

The first market financing for the project could be attracted at the end of next year, he added.

Russian Deputy Prime Minister Arkady Dvorkovich told reporters separately that he had had a meeting with German Foreign Minister Sigmar Gabriel, where the officials had discussed the Nord Stream-2 project.

“We've discussed it at the general meeting, and we obviously have the same position, and we think that the project should be implemented,” he said, adding that he and Gabriel agreed that the third energy package should not be applied to the project.

Gabriel told reporters that the project should work under the existing E.U. regulations, and that the existing legal framework should not be changed as “our partners in the world become worried and unsure.”

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. Russian gas giant Gazprom will implement the project together with its European partners – Shell, OMV, Engie, Uniper, and Wintershall.

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