Nord Stream Withdraw to Build Service Platform

Wednesday, April 09, 2008

Nord Stream AG has withdrawn the conditional application to the Swedish government to build a service platform off the coast of Gotland. Using advanced technology, the consortium now plans to build its pipeline across the Baltic Sea without such a platform. Reflecting these plans and responding to Swedish Government requests, Nord Stream is supplementing the documentation accompanying its application to build the pipeline through Swedish waters.
In December 2007, Nord Stream submitted a conditional application to build a service platform northeast of the island of Gotland in the Swedish Exclusive Economic Zone (EEZ). Since submitting this application, Nord Stream has continued to seek maintenance solutions for the pipeline without building an intermediate service platform. In view of the debate and concerns in Sweden regarding the platform, Nord Stream is pleased that technological advances obviate the need for a platform at the mid-point of the planned pipeline route.
Pipeline maintenance will be undertaken through the deployment of intelligent pipeline inspection gauges (“pigs”). Suppliers have confirmed that an inspection gauge will be able to travel the entire length of the pipeline. Currently, studies are being finalised which describe the technical design of these gauges. Other pipeline projects, such as Franpipe and Langeled, show that long distance pigging is feasible for long high-pressure, large-diameter pipes.
Together with the applications for a platform and the pipeline system submitted in December 2007, Nord Stream provided an environmental study that describes the potential impact of the pipelines on the environment. This report is equivalent to an Environmental Impact Assessment (EIA) for the Swedish part of the project and was provided even though it is not required under Swedish law.
As already announced in December, Nord Stream will supplement its application documentation for the pipeline system in accordance with the government's request and in accordance with Swedish and international law. Nord Stream believes that all prerequisites have been met to start dialogue with the Swedish government about this important project for meeting Europe’s energy supply needs and protecting the climate.