UPDATE: Wintershall CEO says EU resolution not to stop Nord Stream 2

(Adds details in paragraphs 5–6, 8)

KASSEL, Germany, Mar 21 (PRIME) -- A resolution of the European Parliament on the Nord Stream-2 natural gas pipeline will not have any impact on the project, Mario Mehren, CEO of Germany’s Wintershall, said in a news conference on Thursday.

Earlier in March, the parliament voted for a political resolution over the E.U.–Russia relations that includes suggestions to stop the project, to encompass expansion of personal sanctions, to limit Russia’s access to financing and technologies, and to stop considering Moscow a strategic partner.

“The majority (that votes for these resolutions in the European Parliament) is becoming smaller and smaller. I wonder how the initiators will continue voting on them when they finally lose a vote. The resolution has absolutely zero impact on further implementation of the Nord Stream-2 project,” Mehren said.

Project company Nord Stream 2 AG expects Denmark to issue a permit necessary for construction of the pipeline until the end of June. “The project company assumes that the decision on requests will be made in the first half of 2019 so that we are able to build the pipeline as planned,” he said.

Mehren also said that Wintershall has already invested two thirds of 950 million euros it planned to invest, and that only 330–335 million euros are left.

“In general, we are to provide 950 million euros to Nord Stream 2, and we have already financed about two thirds of that, more than 600 million euros. The date when the remaining money is called for depends on a decision of the project company. We will have readied the money by then,” he said.

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 Germany’s E.ON and BASF, Royal Dutch Shell, OMV, and France’s Engie.

Gazprom remains the sole shareholder of the project and will invest 4.75 billion euros, while the European partners agreed to bear 50% of the project costs, or 950 million euros each. Project financing is to cover 70% of the pipeline costs.

End