Gas for Europe 277 Gas for Europe Nord Stream: Once a Vision, Now a Reality T he Nord Stream project was hugely ambitious in its aims and historic for the further development of Europe’s energy mix. It was completed on time, on budget, and without permanently impacting the environment. The vision is a reality. The Nord Stream Pipeline system is fully operational and is capable of transporting up to 55 billion cubic metres (bcm) of natural gas every year to the European energy grid. It would take 50 traditional coal-fired power plants or 40 nuclear power plants to provide an equivalent amount of energy. The pipelines will be a crucial element in Europe’s energy supply for at least the next 50 years. And they represent another important milestone in the evolution of a long-term, mutually beneficial relationship between Europe and Russia in the vital field of energy and energy supply. Nord Stream is proud to have played a role in this historic development. From the European Union’s (EU) perspective, the new, secure source of gas provided by Nord Stream contributes to the region’s economic and environmental policy objectives. Policymakers increasingly see natural gas as playing a valuable role in complementing renewable sources of energy. And just as Europe needs a reliable source of gas from Russia to meet its goals, Russia also relies on gas customers in Europe for income. First direct connection to Russian reserves Only a few years ago, Europe’s supply of natural gas was at risk. Reserves in the North Sea were declining, and supplies had become unreliable at times. Political and economic disputes involving the transit countries of Russian gas through the land-based pipelines meant that millions of Europeans had been left, temporarily, without gas. The completion of the Nord Stream Pipelines means that Europe has a direct line to Russia’s vast energy reserves for the very first time. The arrival of this additional route, involving no transit countries, does much to improve energy security in Europe. The project shows how it is possible for an undertaking of this scale to be organised and successfully completed when a unique set of conditions is met. The first condition was a predictable and steady demand. This is underscored by the increasing number of electricity plants in Europe that are powered by gas. Chapter 8 Gas for Europe 279 Already, about half of all new electricity facilities in Europe use gas. The other condition was a blue-chip line up of shareholders: OAO Gazprom, BASF SE/Wintershall Holding GmbH, E.ON Ruhrgas AG, N.V. Nederlandse Gasunie, and GDF SUEZ SA. They are some of the most experienced gas companies in Europe, each with decades of knowledge about the sourcing, transporting, and marketing of gas. Their commitment to the Nord Stream vision helped make the pipelines a reality. The completion of the twin system is an enormous accomplishment in every way. This is well documented in the preceding chapters. The pipelines are bringing added capacity to Europe. Meanwhile, Russia, a full member of the World Trade Organisation, has the opportunity to broaden its business relationship with Europe with the completion of the Nord Stream project. Both sides have sought for decades to broaden this relationship. The commitment is important because, by every forecast, Europe’s need for gas is growing. A study by Cambridge Energy Research Associates (CERA) confirms the European Union is bound to import more and more gas to keep factories running, homes heated, and cities and communities functioning. CERA predicts that Europe’s natural gas imports will increase by at least 20 percent by 2030, although the increase could be as high as 46 percent. Gas from the Nord Stream Pipelines alone cannot meet this increasing demand. This is one reason Nord Stream has been asked to investigate bringing more Russian gas to Europe through the Baltic Sea. Given the success of Nord Stream, and the considerable body of knowledge now available about conditions in the Baltic Sea, another pipeline built alongside the existing system could provide a solution. In Europe, wind power has been expanding considerably, and this trend is set to continue. Some 32 percent of new power capacity installed in the European Union (EU) since 2012 has been wind-based. Up to half of all electricity produced in the EU by the middle of the century could be produced from wind, according to the European Commission’s Energy Roadmap 2050. Gas is essential to meeting climate goals Demand for gas is growing for both economic and environmental reasons. The economic reason is to sustain growth. A drop-off in energy supply threatens growth. This can be best seen in India, where delays in expanding its electricity grid are among the reasons cited for the slowdown of its giant economy. The environmental reason is related to the status of natural gas as the most climate-friendly of all fossil fuels. Using gas to produce electricity creates about 50 percent fewer emissions per kilowatt-hour than using coal. Replacing only 10 percent of the EU’s coal-generated power production with gas-generated power production would cut carbon dioxide emissions by some 120 million tonnes each year. Numbers such as these are important for the EU to meet its obligations under the Kyoto Protocol, the international climate accord of 1997, when 15 EU nations pledged to reduce greenhouse gas production by 8 percent in the period between 2008 and 2012. Though the Kyoto pact expired at the end of 2012, Europe remains committed to the process. One of the reasons is that it has an established plan for reducing carbon emissions. In December 2011, the European Commission adopted its “Energy Roadmap 2050.” This is now the basis for developing a long-term energy strategy for the region. The roadmap outlines the EU’s commitment to reducing greenhouse gas emissions by 80 to 95 percent below 1990 levels by the year 2050. The Commission expressly acknowledged the importance of gas in transforming Europe’s energy systems in the short and medium terms. The completed twin Nord Stream Pipelines play a modest but important role in this process. By the conclusion of this book, Nord Stream hopes to have demonstrated that the company shares the same environmental goals as the people of Europe and their policymakers in Brussels and in national capitals. The company has also shown that it has the financial resources and technical expertise to realise these goals in an economically efficient and environmentally safe manner. In the five years up to 2013, photovoltaic panels made up 50 percent of all newly installed power capacity in the EU – ahead of all other power generation technologies. Over three-quarters of global solar power capacity in 2011 was located in Europe. The European Commission’s Energy Roadmap 2050 predicts that by mid-century 10 to 16 percent of all electricity produced in Europe could come from solar. Nord Stream has signalled its willingness to build on its track record and unique knowledge of the region and the Baltic Sea to provide an expanded transport system for Russian gas should it be required. But for now, Nord Stream looks forward to maintaining its commitment to increasing energy security in Europe both by operating the existing pipelines and by sharing the knowledge it has gained with all those who share the same goal. • Chapter 8 Gas for Europe 281 Gas Treatment Unit This unit at the Portovaya Compressor Station facility treats gas before it enters the Nord Stream Pipeline system. It removes condensate or gas hydrates, which occur under certain pressure or temperature conditions, and can dehydrate up to 170 million cubic metres of gas per day. After the gas has been treated, it flows into the compressor area before being fed into the Nord Stream Pipelines. Facts & Figures: All about Nord Stream OAO Gazprom is the largest supplier of natural gas in the world, accounting for approximately 15 percent of world gas production. It was established as a joint stock company in 1993 and is partly owned by the Russian state (50.002 percent). Core activities include exploration, production, transportation, storage, processing, and marketing of hydrocarbons as well as generation and marketing of heat and electric power. Gazprom controls approximately 70 percent of Russian gas reserves, produces 78 percent of all Russian natural gas, and generates 17 percent of the electricity in Russia. The company is a leader in the construction and operation of pipelines. It controls a 161,700-kilometre-long pipeline network, which transports roughly 660 bcm of natural gas every year. Our responsibility Shareholders 9 9 % 51 Shareholding companies 15.5 15.5 Nord Stream was dedicated to building its pipelines safely and now to operating them safely. To achieve this, Nord Stream works with experienced partners to ensure the highest safety standards. Both the definition of the optimum route through the Baltic Sea complied with these strict requirements, which were also upheld during construction. These rigorous standards will continue to be met throughout the opera- technical design of the pipelines and the tional life of the twin pipelines. Nord Stream’s contribution to the EU and the Baltic Sea states OAO Gazprom BASF SE/Wintershall Holding GmbH E.ON Ruhrgas AG N.V. Nederlandse Gasunie GDF SUEZ SA The Nord Stream natural gas pipelines represent a vital addition to the infrastructure that will bolster the European Union’s (EU) energy security for the next 50 years and beyond. The twin pipelines also contribute to meeting EU climate change goals. Whereas other major gas infrastructure projects are still only in the planning phase, Europe has the security of the privately financed Nord Stream project. Ever since Line 1 of became operational in November 2011, Nord Stream has provided a fixed link between the European gas transmission system and some of the world’s largest gas reserves in Russia. Gas began flowing through Line 2 in October 2012. Financing A safe supply of energy for Europe 70 % 30 30 percent financed by the five shareholders of the consortium 70 percent financed by commercial loans from over 30 international banks Nord Stream provides an additional northern route to supply 55 billion cubic metres (bcm) of gas to the European Union (EU) annually, helping the EU to improve its energy security by diversifying its gas supply routes. The twin pipelines will help meet a large part of the expected gas shortfall of between 211 and 232 bcm a year by 2030, as they are capable of transporting enough gas to supply 26 million households in Europe each year. Nord Stream provided this key energy infrastructure at no cost to European taxpayers: the consortium’s five shareholders provided 30 percent of the 7.4 billion euro investment, with commercial loans from over 30 international banks providing 70 percent. In the planning phase, Nord Stream set new standards of transparency and international environmental collaboration on transboundary environmental impacts under the Espoo process. Nord Stream brought together all of the nine Baltic Sea states in one of the most complex international environmental consultations ever undertaken. Before construction and operational permits were granted, Nord Stream’s meticulous plans were examined and approved by the authorities of all five countries through whose waters it would pass and their neighbours. Wintershall Holding GmbH specialises in energy and is a wholly owned subsidiary of BASF SE, the world‘s leading chemical company. Wintershall, with its headquarters in Kassel, Germany, has been active in the exploration and production of crude oil and natural gas in various parts of the world for more than 80 years. In Europe, the company trades and sells natural gas and is also an important gas supplier on the German and European market with its subsidiaries WINGAS and WINGAS TRANSPORT. Wintershall is now Germany‘s largest producer of crude oil and natural gas. In its exploration and production activities, Wintershall deliberately focuses on selected core regions where the company possesses a wealth of regional and technological expertise. E.ON Ruhrgas AG is a major investor-owned energy company. Within the E.ON Group operating worldwide, E.ON Ruhrgas in Essen, Germany, is responsible for the global gas business. E.ON Ruhrgas is Germany‘s gas importer with the broadest portfolio of suppliers. The company receives its gas from several countries, among them Russia and Norway. E.ON Ruhrgas has been receiving natural gas from Russia for 37 years. E.ON Ruhrgas Exploration & Production operates in the British and Norwegian North Sea, Russia, and North Africa. Alongside gas production and procurement, the company‘s infrastructure shareholdings help Europe achieve a high degree of supply security. In partnership with other companies, E.ON Ruhrgas is investing in efficient, technologically advanced gas pipeline systems to link Europe with new and existing gas fields. N.V. Nederlandse Gasunie is a European gas infrastructure company. Its network ranks among the largest high pressure gas pipeline grids in Europe, consisting of over 15,000 kilometres of pipeline in the Netherlands and northern Germany. The company offers transport services via its subsidiaries in the Netherlands and Germany and also offers other gas-related services, for instance, in the field of gas storage and LNG. The company is the first independent gas transport provider with a crossborder network in Europe and aims for the highest standards in safety, reliability, efficiency, and sustainability. The Gasunie network forms the core of what is called the northwest European “gas roundabout.” GDF SUEZ SA develops its businesses around a model based on responsible growth to take up today‘s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, combating climate change, and optimising the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities, and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation, as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. The Group is listed on the Brussels, Luxembourg, and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical Index EMU. Shareholders’ Committee Alexei Miller, Deputy Chairman of the Board of Directors and Chairman of the Management Committee of OAO Gazprom Alexander Medvedev, Deputy Chairman of the Management Committee of OAO Gazprom and Director General of OOO Gazprom Export Chapter 8 Vlada Rusakova, Member of the Board and Head of Strategic Development at OAO Gazprom Nikolay Dubik, Member of the Management Committee and Head of Legal Department at OAO Gazprom Gerhard Schröder, Chairman of the Shareholders’ Committee and former Chancellor of the Federal Republic of Germany Dr Harald Schwager, Chairman of the Supervisory Board of BASF SE and Member of the Board of Executive Directors of BASF SE Dr Rainer Seele, Chairman of the Board of Executive Directors of Wintershall Holding GmbH Dr Bernhard Reutersberg, Member of the Board of Management, E.ON AG Klaus Schäfer, Chairman of the Board of Management of E.ON Ruhrgas AG Paul van Gelder, Chairman of the Executive Board and CEO of N.V. Nederlandse Gasunie Gérard Mestrallet, Chairman of the Management Committee and CEO of GDF SUEZ SA Nord Stream from A-Z 285 Nord Stream Staff Directors Matthias Warnig Dr Dirk von Ameln Vladimir Borovik Paul Corcoran Ruurd Hoekstra Matthias Warnig Managing Director Dr Dirk von Ameln Permitting Director Vladimir Borovik Deputy Technical Director Operations and Dispatching Paul Corcoran Finance Director Ruurd Hoekstra Deputy Project Director Construction Henning Kothe Project Director Ulrich Lissek Communications Director Jens D. Müller Deputy Communications Director Jean-François Plaziat Deputy Technical Director Operational Maintenance and Engineering Dr Werner Rott Deputy Project Director Engineering Sergey Serdyukov Technical Director Matthias Warnig was appointed in March 2006 by the North European Gas Pipeline Company, the forerunner to what became Nord Stream in October that year. From 1990 to 2006 he was at Dresdner Bank, where he held various positions, most recently Chairman of the Board of Directors. Warnig, who had several functions in the government of the German Democratic Republic, studied at the Institute of Economics in Berlin. Dirk von Ameln joined the company in 2006. Formerly, he was Director of the Technical Divi- Vladimir Borovik joined the company in September 2008. Before that, he served as Project Paul Corcoran joined the company in 2006, after serving as Finance Director at Wintershall Ruurd Hoekstra joined the company in 2009. Before that, he was with Shell International as a Henning Kothe joined the company in 2006 in the role of Commercial Director, and was Ulrich Lissek joined the company in 2009, arriving from the German retail and tourism Jens D. Müller joined the company in 2006. He has wideranging experience in develop- Jean-François Plaziat joined the company in 2011. From 2006, he was a Deputy Director Werner Rott joined the company in 2006. Prior to that, he served as Head of the Depart- Sergey Serdyukov joined the company in 2006. He is a former Director General of OOO Len- sion of E.ON Gaz Romania, and a member of its board of management. From 1999 to 2004, he was Manager Pipelines and Materials for Ruhrgas AG, after working for Shell International Gas in London. Von Ameln studied mining science at the Aachen University of Technology, Germany. He received his doctorate in 1989. Director at the Blue Stream Pipeline Company. From 1994, he held the position of Deputy Chief of the Operation, Servicing and Spare Parts Department at Gazprom in Moscow. Borovik began working for Gazprom in 1974, and has a degree in mechanical engineering from the Oil and Gas Academy in his hometown of Ufa, Russia. GmbH in Germany. He has worked for the BASF Group, in various positions in the areas of financing, accounting and controlling in the United Kingdom, Belgium, and Germany. Corcoran completed his studies in civil engineering at Liverpool University, UK. He is a fellow of the Chartered Institute of Management Accountants. project engineer in the company’s Exploration and Production unit. He worked for Shell in Oman and the Middle East, and was Project Director for the Gronigen gas field renovation and compression project. Hoekstra studied electrical engineering and information technology at the HTS in Leeuwarden in the Netherlands. promoted to Project Director in 2009. Formerly, he was Head of Controlling for investments and cost centres at E.ON Ruhrgas AG in Germany. He also worked as a Management Consultant in a variety of industries for A.T. Kearney. Kothe has a degree in industrial engineering from the Technical University in Berlin, Germany. company, the REWE Group. He worked at Deutsche Telekom from 1993 to 2006, where he was Head of Communications beginning in 2003. During his career as a journalist, he worked in various positions at “Kölnische Rundschau” and “Die Welt.” He studied geography and history, with a minor in geology at the University of Bonn, Germany. ing communications programmes for energy and infrastructure clients, and has worked as a Project Manager for many international public relations networks, serving clients such as British Gas, RWE, Suez Lyonnaise, ABB, Vivendi, Vattenfall, and Wintershall. He studied political science, with an emphasis on foreign affairs in Germany. for the South-East regional unit of GRTgaz, the main French transmission system operator. Before that, he held the post of Deputy Director of the National Gas Dispatching Centre at GDF SUEZ in Paris. He earned an engineering degree in marine technologies at ENSTA and specialised in oil and gas at ENSPM. ment of Technical Controlling at WINGAS, negotiating major projects including Südal and Speicher Haidach. From 1998, he was in the strategic planning department at the Wintershall Group. Rott received his doctorate in 1990 from the Department of Thermodynamics and Heat Transfer from the University of Paderborn, Germany. transgaz (now OOO Gazprom Transgaz St. Petersburg), and from 1988, he was Head Engineer of Uralintergazstroy in Perm, Russia. Early in his career, he worked on Russia’s Dombarovka-Orenburg gas pipeline. Serdyukov specialised in automation and telecommunications at the Novocherkassk Polytechnic Institute, Russia. Employees Henning Kothe Jens D. Müller Dr Werner Rott Ulrich Lissek The following is a list of names of those employees of Nord Stream AG who have worked with the project for more than a year. Even though we have put together this list with the utmost care, it might be that we have overlooked someone. In this event, please accept our apologies. Jean-François Plaziat Adrian, John Aebischer, Jörg Aitchison, Robert Andermatt, Thomas Andersson, Nicklas Andersson, Sven Olof Annen-Benson, Diane Antener, Markus Arendt, Heinz Auf der Maur, Paula Sergey Serdyukov Backens, Irina Badaoui, Fatiha Badel, Dagmar Baturina, Elena Bodmer, Michèle Böhm, Martina Bonnell, Simon Bonnier, Anne Céline Borovik, Vladimir Brand, Paul Brendel, Dieter Brünner, Claudia Brunnschweiler, Lukas Burnyashev, Alexander Bussmann, Daniel Caguioa, Joel Canepa, Gunilla Casirati, Marco Casuso, Sabie Chernitskikh, Maxim Chundokov, Murat Cora, Claudiu Corcoran, Paul Dukarevich, Dina Dalay, Hermie Davidov-Pilgram, Vitali De Filippi, Alessandro De Groot, Cor De Loor, Ellen Dobberstein, Björn Duchesne, Pierre Dücker, Jörn Dudley, Frank Feygin, Boris † Frame, Michael Frame, Robert Frey, Rebekka Ehrler, Patricia Ermoshkin, Leonid Ewert, Bernd Gaillet, Nicholas Gallus, Thorsten Garrecht, Ralf Geelhoed, Fausta Gerber, Carla Ghisetti, Alessandro Gjedrem, Trond Goehr, Petra Gorodnov, Sergey Gossen, Norbert Grabner, Sabine Griffiths, Anthony Haag, Alexander Haelg, Bruno Hanitzsch, Maud Amelie Harris, Susan Hausheer, Olivia Haynes, Michael Hinder, Aksana Hizsak Archer, Christine Hoekstra, Ruurd Hovinga, Jan Pieter Hunziker, Peter Johnson, Garry Joullié Dardier, Geneviève Kaech, Barbara Kashirov, Artem Kernl, Susanne Khokhlov, Alexander Kiefer-Andersson, Samira Kinscher, Elke Kittilä, Anu Kläusler, Christian Klimenko, Oleg Knauf, Sebastian Kolmakova, Iraida Kothe, Henning Kube, Jan Lange, Jens Leifland Holmström, Tora Liem, Susan Liner, Hans Lissek, Ulrich Loosen, Jutta Lopez, Giuseppe Lugovina, Olga Lvov, Artem Mackenbach, Heike Magliocco, Tamara Mans, Martin Marinov, Marin Martin, Thomas Massny, Peter Mattle, Caterina McKay, Julian James McLean, Brian Medvedev, Konstantin Meshchankin, Evgeny Mihaylov, Petar Muir, James Mullen, Anthony Müller, Jens D. Müller, Karin Müller, Ulrich Müller-Eversbusch, Mayke Osipova, Olga Osmakov, Alexei Nasonov, Alexey Neziri, Valbona Nowack, Georg Nowak, Simoné Nussbaumer, Corinne Nussbaumer, Marianne Pachniuk, Iwan Panchenko, Sergei Pekkola, Tapio Perevedentseva, Anna Plaziat, Jean-François Podgorbunskiy, Konstantin Porter, Mervyn Preston, Chris Protasov, Vladislav Putzi, Liliana Oleshchuk, Mikhail Rath, Peter Reddy, Louise Renaudie, Thierry Richards, Tim Rijkers, Ron Rimensberger, Corina Rivet, Nicolas Röllin, Hansruedi Rott, Werner Salonen, Tiina Sänger, Klaus Sanova, Zalina Sarakhan, Mikhail Sass, Sebastian Schälchli, Manuela Chapter 8 Schetinina, Maria Schiller, Nicole Schmalstieg, Markus Schmidt, Klaus Schümann, Kay Seiler, Manfred Selvi, Andrea Serdyukov, Sergey Sethi, Manvinder Shubin, Izosim Smith, Marc Smyth, Peter Stadler, Nicole Steiner, Ruth Steiner, Stefanie Stief, Elizabeth Stief, Markus Stoelzel, Christina Stoilchev, Mihail Stoll, Jette Strahl, Fedor Suenneke, Nadine Sundelin, Minna Sutton, Eann Teismann, Irene Traber, Marcel Trafelet, Patrick Turnbull, Andrew Tye, Steve Van Dyk, David Vasilyeva, Irina Vasin, Igor Veysalov, Vugar Volobuyeva, Kateryna Von Ameln, Dirk Vork, Arvo Vorobiev, Mikhail Voronov, Andrey Vorontsova, Natalia Wobbel, Bernhard Yarovoy, Igor Yusufov, Vitaly Zakharov, Oleg Zakoryukin, Pavel Zhartun, Ksenia Zheldakov, Alexander Zirnig, Werner Zöllner, Anja Waich, Gertrud Warnig, Matthias Watkins, John Weiss, Michael Nord Stream from A-Z 289 Glossary crossing procedures: Consultations with owners of active cables to be crossed in order to reach mutual agreements covering rights and obligations, etc. cultural heritage: Cultural tradition, something that is passed from preceding generations. Includes shipwrecks and other remains of archaeological interest. A Affected Parties: The states with territorial waters and/or Exclusive Economic Zones (EEZ) adjacent to those of the Parties of Origin under the terms of the Espoo Convention. The Affected Parties of the Nord Stream pipeline project are Estonia, Latvia, Lithuania, and Poland. All Parties of Origin are also Affected Parties. as-built survey: A post construction survey to confirm the exact location of the pipelines as they were laid and to evaluate if further stabilisation is necessary. B backfilling: Refilling an excavated area. baseline survey: Provides data against which every subsequent survey is measured, enabling evaluation of any changes. bathymetry: The term originally referred to the ocean’s depth relative to sea level, although it has come to mean “submarine topography,” or the depths and shapes of underwater terrain. benthic fauna and flora: Collection of organisms living on or in sea or lake bottoms. brackish water: The mixture of seawater and fresh water. buffer gas: After the pipeline has been pressure tested, drained and dried, it is completely filled with nitrogen, which serves as a safety buffer between air and gas. C cable crossings: Areas in which the pipeline crosses a sea cable. See crossing procedures. cage reinforcement: Steel cage placed around pipes serving as reinforcement for the concrete coating. See also concrete weight coating (CWC). capacity per line: The maximum amount of gas that can be received or contained in one pipeline. CAPEX: Capital expenditures. certification: Process of ensuring that a system is compliant with industry standards. concrete weight coating (CWC): To add extra weight and to ensure stability on the seabed, the steel pipes were coated externally with concrete. The concrete coating doubles the weight of the pipes. D design temperature: The highest/lowest possible temperature profile to which the equipment/component or system may be exposed during installation and operation. digital terrain model: A digital model or 3D representation of a terrain’s surface, including underwater terrain. E EEZ: See Exclusive Economic Zone (EEZ) electromagnetic pipetracking system: See pipe tracking system. emergency shutdown valves: See isolation and emergency shutdown valves. Environmental Impact Assessment (EIA): A detailed study of environmental aspects of a project. For Nord Stream this was carried out in a transboundary context governed by international law (see Espoo Convention) and by national legislation in the countries concerned. epoxy coating: Interior epoxy coating to reduce friction. ESMP (Environmental and Social Management Plan): Plans established at the start of each project phase to ensure compliance with all permit obligations and with Nord Stream’s environmental and social commitments. Espoo Convention: Sets out the obligations of signatory states to notify and consult each other on all major projects that are likely to have a significant impact across national borders. See also Affected Parties; Parties of Origin. Exclusive Economic Zone (EEZ): A sea zone over which a state has special rights over the exploration and use of marine resources, formalised by the Third United Nations Convention on the Law of the Sea in 1982. G Gas Transportation Agreement (GTA): Nord Stream’s agreement with Gazprom Export which governs the transportation tariffs. German landfall facility: Refers to the entire installation at Lubmin of the onshore and offshore Nord Stream facility, and the gas receiving terminal of the connecting pipelines, OPAL and NEL. See also Lubmin landfall facility. gradiometer array: A 6.7-metres-wide twelve-sensor array mounted on a Remotely Operated Vehicle (ROV) which detects any ferrous (iron-based) metals on the seabed as well as buried objects that may have sunk in the soft sediments. gravel placement: Method of providing structural support for the pipelines to rest on by placing gravel on the seabed. Gryazovets-to-Vyborg trunkline: Pipeline linking Unified Gas Supply System of Russia (UGSS) across the Vologda and Leningrad Oblasts to the facilities at Portovaya Bay. Gulf of Finland: Easternmost arm of the Baltic Sea that extends between Finland (to the north) and Estonia (to the south) all the way to St. Petersburg in Russia. H HELCOM (Helsinki Commission): Governing body of the “Convention on the Protection of the Marine Environment of the Baltic Sea Area”. Ensures the environmental protection of the Baltic Sea region through intergovernmental co-operation between the Baltic states and the European Community. HRE (gas heating and reducing equipment): Used at the gas-in stage, when the pipelines are filled with buffer gas. The unit heats the gas to prevent hydrates from forming and to reduce pressure. HS-ESMS (Health, Safety, and Environmental and Social Management System): Sets out the environmental and social requirements for the Nord Stream project, providing the framework for the standards, planning, and procedures for every stage of the project. hyperbaric tie-in: Underwater welding of the pipeline sections on the seabed. I F firing line: The central assembly line where the 24-metre double joints were connected to the pipeline end and welded together by semi-automatic machines. flow capacity: The maximum volume of gas that can be received or contained. installation corridor: An subsea corridor, 15 metres wide, along the route of the proposed pipeline, surveyed and scanned for objects as small as ten centimetres. intelligent end caps: End caps fitted to all pipes, with sensors and chips that provided a tamper warning and enabled each pipe to be tracked at any location at all times. See also Radio Frequency Identification (RFID). isolation and emergency shutdown valves: Valves used to separate the pipelines from the landfall facilities in case of an emergency. They immediately interrupt the flow of gas. L landfall facilities: The installations at the locations where the offshore pipelines surface and meet land. See also Lubmin landfall facility; Portovaya landfall facility. Lubmin landfall facility: The installation located in Lubmin, Germany, where the pipelines reach land and where gas is prepared and tested before being transported through OPAL and NEL for onward transmission through the European pipeline grid. M magnetometer: An instrument used for surveying the seabed which provides information on ferrous (iron-based) materials. marshalling yards: After concrete weight coating, the pipes were shipped by carrier vessels to marshalling yards where they were loaded into the storage facilities. multi-beam echo sounder: Equipment for surveying the seabed to provide a detailed picture of the contours of the seabed and of objects lying on it. N Natura 2000: European Union-wide network of nature protection areas established under the 1992 Habitats Directive. nominations: The quantity of gas entering the system upstream and the amount extracted downstream. The client’s specification of how much gas they want to flow into the pipelines in Russia and how much they want to remove in Germany. P Parties of Origin: The states with Exclusive Economic Zones (EEZs) and/or territorial waters in which a project is constructed under the terms of the Espoo Convention. The Parties of Origin of the Nord Stream pipeline project are Russia, Finland, Sweden, Denmark and Germany. Russia is a signatory but not a party to the Espoo Convention. However, Russia acted as a Party of Origin where its national legislation allowed. permitting process: The process of applying for and obtaining permits for pipeline construction. PIG (pipeline inspection gauge): Maintenance tool that is sent through the pipeline, propelled by the gas pressure, to Nord Stream Storybook detect any sign of corrosion, while a device on the PIG measures the internal dimensions of the pipeline to detect buckling, its precise position, size, and coordinates. PIG trap: Section of the pipeline through which the PIG is removed or inserted. pipe tracking system: System using an individual Radio Frequency Identification (RFID) chip fitted into the end cap of each pipe segment, enabling identification and tracking. pipeline integrity: The ability of the submarine pipeline system to operate safely and withstand the loads imposed during the pipeline lifecycle. polyethylene coating: Exterior polyethylene coating to combat corrosion. polyurethane infill: Once the weld is confirmed acceptable, a corrosion-resistant, heat-shrink sleeve is applied around its entire circumference. Then, polyurethane foam is poured into a mould surrounding the weld area. This foam hardens, providing further protection. Portovaya landfall facility Bay: The installation in Portovaya Bay in Russia that links the Unified Gas Supply System of Russia (UGSS) and the Nord Stream pipelines. pre-lay survey: Although the seabed was surveyed during the route planning phase, a pre-pipelaying survey was performed before pipeline installation to confirm past data and to ensure pipeline safety. pressure-segmented design: The pipelines were designed in three sections with progressively thinner walls because the pressure would differ from one end of the pipeline to the other, starting at 220 bar in Russia, about 200 bar midway, and ending at 100 bar in Germany. Reducing the wall thickness also reduced the amount of steel used. (See telescope design.) Project Information Document: Describes the technical background and possible environmental impacts of Nord Stream. Produced in accordance with the Espoo Convention by the responsible environmental authorities of the Parties of origin to notify each other and the Affected parties of Nord Stream’s plans. S-curve: As the pipeline was lowered to the seabed, it formed an “S” shape, which prevented it being damaged during installation. sea floor morphology: The form and structure of the sea floor. seabed survey: Survey of the seabed including investigations of the soil and bottom sediments, water currents, sea temperatures and wave parameters. sediment sampling program: The program for sampling solid fragments of inorganic or organic material dispersed by underwater operations including munitions clearance and pipe laying. side-scan sonar (SSS): A type of sonar system that can be used to create an image of large areas of the sea floor. Nord Stream used it to search for metallic objects in and on the seabed during the seabed survey. stinger: Attaches to the stern of the pipelay vessel to support the pipeline when lowered to the seabed. sub-bottom profiler: Equipment used in seabed surveys that is able to penetrate deeply into the material on the bottom of the sea showing a cross-section of the mud, silt, and bedrock that make up the seabed. T telescope design: See pressure-segmented design territorial waters: As defined by the United Nations Convention on the Law of the Sea, coastal waters extending at most twelve nautical miles from the baseline (usually the mean low-water mark) of a coastal state. The territorial sea is regarded as the sovereign territory of the state. Trans-European Network for Energy (TEN-E) guidelines: Issued by the European Commission with a view to prioritising and facilitating gas and electricity transport infrastructures and improving and diversifying EU gas sources and routes. turbidity: The suspension of sediment in the water, in turn leading to the possible resuspension and relocation of contaminants. U R Radio Frequency Identification (RFID): Each pipe segment was fitted with an individual RFID chip in its end cap, enabling identification and tracking. Unified Gas Supply System of Russia (UGSS): The world’s largest gas transmission system, encompassing gas production, processing, transmission, storage, and distribution facilities. S W S2S (ship-to-ship) system: Method of transferring the pipes delivered by sea from Mukran to a transport ship situated on the opposite side of the pier. wall thickness: The specified non-corroded pipe wall thickness of a pipe, which is equal to the minimum steel wall thickness plus the manufacturing tolerance. Glossary 291 Index Note: page numbers in italics refer to figures. A Affected Parties (Espoo Convention) 67, 69, 83 aggregate supplies 109, 111 Albrecht, Peter 94 Alferj, Domenico 162–163 Allseas 141 (see also Solitaire) Ameln, Dr Dirk von 68, 71, 73, 75, 288 anchor blocks 257 anchor corridors 44, 60 anchor lines 172 Andersson, Samira Kiefer 211 anti-corrosion coating 108 anti-friction coating 108, 145 Apking, Jan-Philip 94 as-laid surveys 247, 259 asset management 245 Asset Management Policy 267 awards 4, 94, 133, 245 B backfilling 137, 231 vessels 256 BACTEC International Limited 60 Baltic Gas Interconnector 26 Baltic Pipe 26 Baltic Sea bathymetry 29, 44, 56, 217 benthic lifeforms 216, 217, 219, 233 cultural heritage sites 42, 44, 54–55, 57, 59, 219 ecosystem 41, 207, 209 environmental considerations 27, 56, 79, 207–209, 217, 227 environmental protection sites 22, 59, 209, 217, 221, 226–227 fauna and flora 227, 228–229, 235 fishing interests 59, 72–73, 81 munitions detection and clearance 45, 49–51, 56–57, 59, 60–63, 79 pipeline route 20, 21, 35, 36–37, 46–47 salinity 228 shipping interests 51, 59, 73 shipwrecks 42, 44, 45, 54–55, 57, 59, 210 surveys and investigations 28, 43–44, 56–57 water flow 235 in winter 18–19 (see also Bay of Greifswald; Bornholm (island); Gotland, Sweden; Gulf of Finland) Baltic Sea Pipeline Link see Ostee Pipeline Anbindungs Leitung (OPAL) Baltic States, permitting process 72 Balticconnector 26 Bank of Tokyo-Mitsubishi UFJ 114 banks, participating 114 Barclays Capital 114 Barent Zanen (vessel) 158 baseline surveys environmental 24, 207, 209, 211 pipeline 247, 259, 260, 261, 269 BASF/Wintershall 21, 23, 113, 285 bathymetry 29, 44, 56, 217 Bay of Greifswald 168–169 cofferdam 137, 186–187 soil management 137, 217 trenching 137, 158, 188, 231 wreck found in 42, 45, 54, 59 Bayern LB 114 BBVA 114 benthic lifeforms 216, 217, 219, 233 bird populations 221, 223, 227, 229, 235 blue mussels, water quality indicators 220, 221–223 Blue Stream 21 BNP Paribas 114 Boehm, Roland 106–107 Bonnell, Simon 41, 43, 44, 45, 49, 51, 57 Bornholm (island) munitions dumps 49, 51 routing around 43, 81 Borovik, Vladimir 239, 241, 245, 247, 287 Bremen pipe transshipment 96 buckling detection 250, 261 budgetary planning see finance plan buffer gas 192, 256 Bugsier 9 (vessel) 159 C cable crossings 27, 51, 59, 158 cage reinforcement 109, 111, 122 Caja Madrid 114 Cambridge Energy Research Associates (CERA) 281 capacity, pipeline 21, 239 capital expenditures (CAPEX) 110, 112 carbon emissions reduction logistics 198 natural gas benefits 17, 33, 281 carrier vessels see pipe carrier vessels Casirati, Marco 137, 141 Castoro Dieci 137, 147, 158, 168–169 Castoro Sei 46, 102–103, 147, 154–155, 158, 166–167, 227 daily reporting 164 PIG launcher 170 pipe laying 119, 165, 174–175 pipe welding 148, 149, 150–151, 164 retrofitting 102–103 cement supplies 109, 111 certification 261, 269 chemical munitions 45, 51, 78–79, 225 Cirelli, Jean-François 240 Citi 114 clams 223, 228 Coastal Thunder (vessel) 159 cofferdams 137, 186–187 combined capacity 21, 239 Commerzbank 93, 106–107, 114 communications programme 69, 71, 76 facts and figures 83–87 communications systems see Control and Communications System company formation and start-up 23, 25, 94 compression (start of operations) 239 Compressor Station Portovaya see Portovaya Bay Compressor Station concrete weight coating (CWC) 108–109, 111, 122, 145 cage reinforcement 109, 111, 122 coating plants 123, 125 conductivity, temperature, depth (CTD) instruments 79, 214 conservation areas see environmental protection sites construction 119–121 facts and figures 198–199 landfall facilities 137 pre-laying process 45, 133, 137 project management 119, 121 (see also gravel placement; pipe laying; trenching) construction debris 250 construction schedule 79, 173 consultation process 41, 43, 72–75, 78–81 contracts with suppliers 111 environmental monitoring 211 materials for concrete coat weighting 108–109 pipe coatings and logistics 97, 108, 129 pipe making 95, 97, 100, 110 pipelaying 95, 97, 101 pipeline repairs 259 Control and Communications System 241, 245 facts and figures 270 Control Centre, Zug see Zug Control Centre Corcoran, Paul 91, 93, 287 corporate governance 94–95 corrosion detection 250, 261 corrosion protection 108, 145, 175 costs see capital expenditures (CAPEX) County Museum of Gotland 43 crane vessels 159, 173 Credit Agricole 114 Credit Suisse 114 crossing agreements 27, 59 crustaceans 228 CTD (conductivity, temperature, depth) instruments 79, 214 cultural heritage sites 44, 54–55, 57, 219 (see also shipwrecks) CWC see concrete weight coating (CWC) D Danish Hydraulic Institute 44 Data and Information Fund 217 DB Schenker Rail 124 de-icing of pipes 134–135, 163 DekaBank 114 demand for natural gas 17, 32, 34, 35 Denmark Danish sector 54 permitting process 72, 73, 80–81 (see also Bornholm (island)) design pressure 58, 270 design temperature 245, 270 Det Norske Veritas (DNV) 95, 247, 261, 268–269 Deutsche Bahn AG 114, 125 dewatering 141, 182–183 dewatering PIGs 183–184, 250, 251 DEXIA 114 digital terrain model 44, 56–57 dive support vessel 176, 178, 200 diving bell 181, 202–203 diving operations 177–179, 200–203 DNV (Det Norske Veritas) 95, 247, 261, 268–269 DoF Asa 44 double-gate valves 194–195, 256, 267, 271, 275 double-jointing 174, 175 dredging see trenching Dubik, Nikolay 285 dynamically positioned vessel 73, 140, 172 DZ Bank 114 E ECA Euler Hermes 93, 113 ECAs (export credit agencies) 93, 107, 113 economic benefits 110, 125 ecosystem 41, 207, 209 EEZs (Exclusive Economic Zones) 41, 67 EIA (environmental impact assessment) 24, 44, 69, 207 electromagnetic pipe-tracking system 267 emergency response plans 245, 247 emergency shutdown valves 193, 245, 246, 256, 266, 271, 275 Environmental and Social Management Plan (ESMP) 211 environmental considerations carbon emissions reduction 17, 33, 198, 281 dredging 217, 231 flooding and pressurising 141 gravel placement 230 logistics 133 munitions clearance 51, 61, 63, 79, 227 offshore/onshore pipelines compared 21 route selection 27, 56 soil management 137 underwater noise 227, 233 environmental consultations 41, 43, 72–75, 78–81 environmental impact assessment (EIA) 24, 44, 69, 207 environmental monitoring 44, 207–209, 211, 226–227, 232–233 effect of munitions clearance 60, 61, 63 effects of gravel placement 230 facts and figures 58, 230–231 (see also fish monitoring; water quality monitoring) environmental protection sites 22, 59, 209, 217, 221, 226–227 environmental regulations 67, 209 (see also permitting process) Environmental Resources Management 44 environmental standards 261, 269 environmental surveys 43–44, 207, 209, 211 E.ON AG (later E.ON Ruhrgas AG) 21 E.ON Ruhrgas AG 15, 21, 23, 113, 285 epoxy coating 108 ERM 111 ESMP (Environmental and Social Management Plan) 211 Espiranto Santo Investment 114 Espoo Convention 41, 44, 67, 72, 81 Espoo Report 24, 69, 70, 71 Estonia, permitting process 72 Euler Hermes 93, 113, 114 EUPEC Pipecoatings SA 97, 108, 129, 133 European Gas Conference Award 94 European gas pipeline network 21, 31, 245 European Union (EU) benefits of project 279, 284 energy strategy 281 engagement with 69, 71 gas connection options 17, 20, 27 gas imports 34 gas infrastructure 17, 20, 31 natural gas demand 17, 32, 34, 35 renewable energy 280 support for project 21, 30–31, 34 EUROPIPE GmbH 95, 96, 100, 110 Evans, Sverker 226–227 Exclusive Economic Zones (EEZs) 41, 67 export credit agencies (ECAs) 93, 107, 113 exterior polyethylene coating 108 external diameter 198 F facts and figures construction and logistics 198–199 environment and monitoring 230–233 history and planning 32–33 Nord Stream 284–285 operations and management 270–271 politics and permits 82–83 procurement and financing 110–111 research and routing 58–59 fail-safe mechanisms 241 Far Samson (vessel) 133, 137, 158, 184 fauna 209, 228–229 fish species 208, 228 marine mammals 79, 208, 217, 219, 227, 229, 233 terrestrial 213 (see also benthic lifeforms) feasibility studies 26, 27, 41 Fillon, Francois 240 film, interactive 86 finance plan 91–94, 106–107, 112–115 facts and figures 110, 284 financial crisis of 2008 91, 113 Finland Finnish sector 55, 230–233 Gulf of Finland 45, 51, 78–79, 230 permitting process 72, 73, 75, 78–79 firing line (pipeline assembly) 174 fish monitoring 208, 209, 212–213, 218–219, 233 fish species 208, 228 fishing interests 59, 72–73, 81 Flaa, Einar 177–179, 179, 180 flat-bottomed pipelay vessel see Castoro Dieci flooding and pressurising 141, 182–185, 250 flora terrestrial 213, 219 (see also benthic lifeforms) flow capacity 21, 239 Forsa 76 Fortis Bank Nederland 114 Fortum 20, 21 Fugro OSAE 44 funding requirements 112–115 G gas deliveries 239, 245 gas heating and reducing equipment (HRE) 256 gas metering 245 gas operating temperature 245, 270 gas preheaters 273 gas pressure 58, 239, 245, 247, 270 gas transport capacity 21, 239 Gas Transportation Agreement (GTA) 107 gas treatment facility 245, 247, 282–283 Gascade Gastransport GmbH 245, 265 Gasuni see N.V. Nederlandse Gasunie gauge plates 185 gauging 185 Gazprom early involvement 15, 21 Index 293 experience of offshore pipelines 21 gas treatment facility 245, 282–283 Gryazovets-to-Vyborg trunkline 241, 254 natural gas exports to EU 32 shareholding 113, 285 Unified Gas Supply System of Russia (UGSS) 16, 241 (see also Portovaya Bay Compressor Station) Gazprom Export 245 Gazprom Transgaz St. Petersburg 245 GDF Suez S.A. 23, 113, 285 Gelder, Paul van 240, 285 geodetic equipment 252 Geological Survey of Sweden (SGU) 227 geophysical surveying equipment 28–29, 44 geophysical surveys 28, 43 geotechnical surveys 28 German landfall facility see Greifswald Receiving Terminal (GRT); Lubmin landfall facility German Logistics Award 133 German/Russian agreement 21, 23 Germany German sector 54, 231 permitting process 75 (see also Bay of Greifswald) Gjedrem, Trond 43, 44, 45 global gas reserves 33 Goot, Fokko van der 217 Gossen, Norbert 94, 95, 99, 100, 101 Gotland County Museum 43 Gotland, Sweden munitions sites 49 mussels collection 223 pipe laying 162 route planning 35 security concerns 74 Slite 120, 126–127, 129, 146 government loan guarantees 107 gradiometer arrays 29, 39, 44, 48, 56–57 gravel placement 45, 73, 133, 173, 203 environmental monitoring 230 vessels 158 Greifswald Receiving Terminal (GRT) 241, 264, 272 Greifswalder Bodden see Bay of Greifswald grey seals 208, 229 Groot, Cor De 101 Gryazovets-to-Vyborg trunkline 241, 254 GTA (Gas Transportation Agreement) 107 Gulf of Finland 45, 51, 78–79, 230 H Haelg, Bruno 207, 209, 217 Hanko, Finland 125, 128, 130–131, 134–135, 146 hapa core sampler 225 harbour porpoises 208, 219, 229 harbours 111, 120, 125, 129, 138–139, 144, 145–146, 198–199 Health, Safety, and Environmental and Social Management System (HS-ESMS) 211, 217 HELCOM (Helsinki Commission) 41, 59, 209 helicopters 161, 175 Helsinki Commission (HELCOM) 41, 59, 209 history and planning 15–37 alternative routes 20, 21, 35 connecting business with Baltic authorities 26–27 European support for project 21, 30–31, 34 facts and figures 32–33 gas industry expert’s perspective 30–31 Nord Stream formation and startup 23–25 surveys and investigations 28–29 (see also route development) Hoburgs Bank 221, 227 Hoekstra, Ruurd 119, 121, 288 Holcim 109 HRE (gas heating and reducing equipment) 256 HS-ESMS (Health, Safety, and Environmental and Social Management System) 211, 217 hydrography 28–29, 56–57, 79, 214, 230 hyperbaric tie-ins 141, 177, 200–203 I IEA (International Energy Agency) 34 infauna 216, 217, 219, 233 infographics environmental monitoring 232–233 finance plan 112–115 history and planning 34–37 logistics 144–147 Lubmin landfall facility 272–275 munitions clearance 60–63 pipeline construction 172–175 Portovaya landfall facility 254–257 public communications programme 84–87 underwater tie-ins 200–203 ING 114 inlet gas pressure 247 inlet gas temperature 270 in-service buckling 250, 261 inspections see environmental monitoring; maintenance inspections installation corridor 43 Institut für Angewandte Ökologie (Institute for Applied Ecology) 44 intelligent end caps 136, 199 Intelligent Pipeline Inspection Gauge (PIG) see Pipeline Inspection Gauge (PIG) interior epoxy coating 108 internal diameter 58, 198 International Energy Agency (IEA) 34 Intesa SanPaolo 114 iron ore supplies 108, 111 isolation valves 245, 246 isopods 228 Ivanov, Sergei 240 K Karlskrona, Sweden 127, 132, 138–139, 145 kfw IPEX-Bank 114 kicker line 253 Kothe, Henning 23, 25, 94, 95, 97, 288 Kotka, Finland, concrete coating plant 122, 125, 133, 140, 146 L landfall facilities see Lubmin landfall facility; Portovaya landfall facility landscape monitoring 207, 213 Latvia, permitting process 72 lift bags 201–202 Lissek, Ulrich 68, 69, 72, 288 Lithuania, permitting process 72 loan guarantees 113 Lofts, Graham 106–107 logistics 121–133, 144–147 facts and figures 198–199 map 111 recording of vessel movements 231 long-tailed ducks 221, 223, 227, 229 Lubmin landfall facility 137, 262–266, 272–275 under construction 194–195 local operational facilities 241 pulling pipeline ashore 137, 189, 190–191 (see also Bay of Greifswald) Lubmin warehouse 258 M magnetometers 28 Magnusson, Marina 221, 223 Maimone, Salvatore 93 maintenance inspections 74, 250, 260, 261, 270 maintenance programme 259, 267 (see also repair methods) maintenance team 259 Mäkinen, Anita 78–79 Marin Mätteknik AB (MMT) 41, 44, 56–57 marine mammals 79, 208, 217, 219, 227, 229, 233 Marine Monitoring AB 221, 223 Markit iTraxx Europe Senior Financials index 115 marshalling yards 75, 126–127, 130–131, 144, 145–146 materials, pipeline 108–109 facts and figures 111 transport of 133 McLean, Brian 133, 141 Mecklenburg-Western Pomerania 22, 42, 54, 125 media coverage 68, 76–77, 82 Mediobanca International (Luxembourg) SA 114 Medvedev, Alexander 285 Medvedev, Dmitry 240 Merkel, Angela 240 Mestrallet, Gérard 285 metering station 245 Miller, Alexei 21, 240, 285 mine clearance see munitions clearance MINELCO AB 108 Mizuho 114 MMT (Marin Mätteknik AB) 41, 44, 56–57 molluscs 227, 228 mooring systems 172 (see also dynamically positioned vessel) Moscow shareholders’ meeting 97 Mukran, Germany, concrete coating plant 122, 125, 133, 145 Mülheim EUROPIPE plant 96 Müller, Jens D. 25, 288 Müller, Ludwig von 125, 129, 131, 133 multi-beam echo sounders 29, 44, 57 munitions clearance 45, 51, 59, 60–63, 79 environmental considerations 51, 61, 63, 79, 227 munitions dump sites 45, 49, 59, 63 munitions surveys 45, 49–51, 59 mussels, water quality indicators 220, 221–223 M/V Supplier (vessel) 159 N Natixis 114 Natura 2000 sites 59, 221, 226–227 natural gas benefits 17, 33, 281 demand 17, 32, 34, 35 reserves 15, 17, 32, 33 nature reserves see environmental protection sites NEGP (North European Gas Pipeline Company) 23, 25 NEL (North European Gas Pipeline) 247, 272, 273 Neste (merged with Imatran Voima to form Fortum) 15, 17, 20 noise control 75, 213 noise monitoring 213, 227 nominations process 241, 245 non-destructive weld testing 175 Nord Stream AG company formation and start-up 23, 25, 94 company structure 23, 25 Nord Stream project origins 4, 15, 17 Nordea 114 Nordeuropäische Erdgasleitung (NEL) 247, 272, 273 Norra Midsjöbanken 221, 226–227 North European Gas Pipeline Company (NEGP) 23, 25 North European Gas Pipeline (NEL) 247, 272, 273 North Transgas Oy (NTG) 15, 17, 20, 26, 28, 34 Novak, Alexander 240 Nowack, Dr Georg 137 NTG (North Transgas Oy) 15, 17, 20, 26, 28, 34 N.V. Nederlandse Gasunie 23, 113, 285 Nychas, Anastasios 71 O OAO Gazprom see Gazprom Oettinger, Guenther 240 offshore/onshore pipelines compared 20, 21, 31, 34 OMK 95, 100, 110 onshore monitoring 213, 219 onshore pipelines 257, 267, 275 onshore soil monitoring 207, 213 OPAL (Ostee Pipeline Anbindungs Leitung) 247, 272, 273 operating pressure 239, 245, 247 operations 239–275 compression (operational startup) 239 Control and Communications System 241, 245, 270 facts and figures 270–271 nominations process 241, 245 Zug Control Centre 241, 244, 245, 247 (see also maintenance programme; safety systems) ordinance clearance see munitions clearance Oskarsson, Ola 56–57 Ostee Pipeline Anbindungs Leitung (OPAL) 247, 272, 273 outlet gas pressure 247 Oxford Institute for Energy Studies 30 P PAM (passive acoustic monitoring) 63 Parties of Origin (Espoo Convention) 67, 69, 71, 82 passive acoustic monitoring (PAM) 63 peg spacers 122 permitting process 27, 67–82 facts and figures 82 (see also crossing agreements) PeterGaz B.V. 43, 44 PetrolValves S.R.L. 266 PHFs (pipe-handling frames) 178, 201 PIG (Pipeline Inspection Gauge) 74, 185, 247, 248–249, 250–251, 261 PIG launchers 170, 171, 183–185, 253 PIG receivers 184 PIG traps 256, 261, 266, 271, 275 double-gate valves 194–195, 256, 267, 271, 275 pigging see PIG (Pipeline Inspection Gauge) pipe carrier vessels 120, 138, 140, 174 uploading pipes 142, 143 pipe coatings anti-corrosion 108 anti-friction 108, 145 pipe de-icing 134–135, 163 pipe delivery 98, 120, 124, 132, 145–146, 199 pipe dimensions 198 pipe edge bevels 148, 174, 201 pipe elevator 174 pipe end caps 136, 199 pipe handling frames (PHFs) 178, 201 pipe laying 45, 147, 156–157, 162–163 facts and figures 199 process 174–175 S-curve 100, 173 sequence 121 pipe production 95–97, 96, 99–100, 110, 111 pipe segments, facts and figures 198 pipe storage 125, 129, 146, 258 pipe tracking system 199, 267 pipe wall thickness 58 pipe welding see welding pipelay vessels 98, 147, 158, 159, 172 retrofitting 101 scale model 74, 84 stingers 104–105, 156–157, 173 (see also Castoro Dieci; Castoro Sei; Solitaire) pipeline flooding, cleaning, and gauging 141, 182–185, 250 Pipeline Information Tour 74, 83–87 Pipeline Inspection Gauge (PIG) 74, 185, 247, 248–249, 250–251, 261 pipeline inspections 259, 260, 261, 270 pipeline integrity management 247, 261, 267 safety standards 268–269 pipeline plough 133, 137 Pipeline Repair System (PRS) 267 pipeline route see route development pipeline sections telescope design 44–45, 58, 141, 269 welding 141, 177, 200–203 PL3 (pipeline plough) 133 planning see history and planning Plaziat, Jean-Francois 245, 247, 259, 261, 267, 289 ploughing see trenching Poland, permitting process 72 political considerations 20, 69, 71, 281 polyethylene coating 108 polyurethane fill-in/ infill 175 Pomeranian Bight 231 pontoons 154, 175 Portigon (previously WestLB) 114 Portovaya Bay Compressor Station 241, 242–243, 254–257, 282–283 Portovaya landfall facility 137, 196–197, 254–257 local operational facilities 241 Index 295 position monitoring 252 pulling pipeline ashore 137, 196–197 ports (harbours) 111, 120, 125, 129, 138–139, 144, 145–146, 198–199 post-lay process 137 (see also backfilling) post-lay surveys 175 (see also as-laid surveys; baseline surveys) power cable crossings 27, 51, 59 pre-commissioning 141, 250 pre-lay process 45, 137 (see also gravel placement; trenching) pre-lay survey 175 press converage see media coverage pressure testing 182–183, 184–185, 250 pressure wave monitoring 213, 227 pressure-segmented design 44–45, 58, 141, 269 PriceWaterhouseCoopers (PWC) 94, 114 procurement 95, 97, 99–101 facts and figures 110–111 (see also contracts with suppliers) project costs see capital expenditures (CAPEX) Project Finance Award 94 project information document 41, 67 project management 119, 121 protected areas see environmental protection sites PRS (Pipeline Repair System) 267 public communications programme 69, 71, 76 facts and figures 83–87 public hearings 69, 71, 72, 82 Putin, Vladimir 21 PWC (PriceWaterhouseCoopers) 94, 114 repair strategy 247, 259, 267 repair vessels 267 research vessels see survey vessels reserves of natural gas 15, 17, 32, 33 Reutersberg, Bernhard 240, 285 RFID (Radio Frequency Identification) 199 rigid inflatable boat (RIB) 63 risk assessments 45, 79 rock placement see gravel placement RoRo traffic 129 Rosen Integrity Solutions 250, 261 Rott, Dr Werner 123, 125, 133, 289 route development 20, 21, 35–37 facts and figures 58–59 final route 36–37, 46–47 route optimisation 43, 58 route surveys 43–44, 56–57 facts and figures 58 finds along the route 54–55 (see also munitions surveys) ROVs see remotely operated vehicles (ROVs) Royal Bank of Scotland (RBS) 93, 114 Ruhrgas AG (later E.ON Ruhrgas) 15 Rusakova, Vlada 285 Russia gas connections with EU 17, 20, 279, 281 natural gas production 32 natural gas reserves 15, 17, 32, 37 participation in the environmental consultations 75 permitting process 74 Russian sector 55 Russian landfall facility see Portovaya landfall facility Russian/German agreement 21, 23 Rutte, Mark 240 RZB Group 114 Q quality assurance/control 121, 122, 136 quays see harbours R Rädeker, Hanne 80–81 Radio Frequency Identification (RFID) 199 Rambøll Management A/S 26–27, 44 RBS (Royal Bank of Scotland) 93, 114 receiving terminal (of OPAL and NEL) 241, 247, 264, 272–275 reef structures 231 relief valve 273 remote monitoring and control 241 remotely operated vehicles (ROVs) 28–29, 44, 57, 173 pipeline inspection 261 support vessel 38–39, 52–53, 63 tether management system (TMS) 50, 61 renewable energy 280 repair methods 267 repair service agreement 267 S S2S (ship-to-ship) system 120, 129 SACE S.p.A. 93–94, 113, 114 safety standards 121, 261, 268–269 (see also pipeline integrity management) safety systems 241 emergency response plans 245, 247 emergency shutdown valves 193, 245, 246, 256, 266, 271, 275 relief valve 273 Sagitov, Roustam 75 Saipem S.p.A. 93, 95, 97, 101, 141, 172 (see also Castoro Dieci; Castoro Sei) Sandpiper (vessel) 158 Sass, Sebastian 68–69, 74 Sassnitz-Mukran 111 scaups 229 Schäfer, Klaus 285 Schmidt, Klaus 123 Schröder, Gerhard 240, 285 Schwager, Dr Harald 240, 285 S-curve 100, 173 seabed interventions 45, 137, 230–231 (see also gravel placement; trenching) seabed reinstatement 137, 217, 231 seabed sediment see sediment dispersion; sediment sampling program seabed surveys 43–44, 56–57, 207, 209 seabed topography 28, 44, 56–57, 213 seabirds 221, 223, 227, 229, 235 seal scrammer 51, 63 seals 79, 208, 229 SeaTerra 51, 60 SEB 114 security, national 74 sediment dispersion 73, 221, 226–227 sediment sampling program 211, 215, 217, 224–225, 230, 231 Seele, Dr Rainer 285 segmented pressure design 44–45, 58, 141, 269 Sellering, Erwin 240 Selvi, Andrea 259, 267 semi-submersible pipelay vessel see Castoro Sei Serdyukov, Sergey 17, 20, 21, 23, 247, 289 SGU (Geological Survey of Sweden) 227 shareholders 23, 113, 284, 285 Shareholders’ Committee 285 shipping interests 51, 59, 73 shipwrecks 42, 44, 45, 54–55, 57, 59, 210 facts and figures 59 Shtokman field, Russia 98 shutdown valves 193, 241, 245, 246, 256, 266, 271, 275 side-scan sonar (SSS) 44, 58 Skandi Arctic (vessel) 141, 159, 176, 178, 181, 200, 203 Slite, Sweden 120, 126–127, 129, 146 SMBC 114 Société Générale 93, 114 soil management 137, 217, 231 soil monitoring 213 solar energy 280 Solitaire 79, 140, 147, 159, 160–161, pipe laying 162–163 pipe loading 142 Standard Bank 114 standards certification 261, 269 statistics see facts and figures Statoil Repair Pool 259 Pipeline Repair System (PRS) 201, 267 steel cage reinforcement 109, 111, 122 Stern, Professor Jonathan 30–31 stingers 104–105, 156–157, 173 Stirling, Gunn 247, 268–269 storage of pipes 125, 129, 146 storage warehouse 258 Strøbæk, Neel 17, 20, 26, 26–27 sub-bottom profilers 28, 44 submarine pipeline plough 133, 137 Sumitomo 95, 100, 110 suppliers 111 (see also contracts with suppliers) supply chain 123, 129 survey corridors 41, 43 survey vessels 28, 28–29, 48, 52–53, 159 operational inspections 260, 261 surveying equipment 28–29 surveys and investigations route planning 28, 43–44, 56–57 (see also environmental surveys; mainte nance inspections; munitions surveys) Swedegas 15 Sweden environmental monitoring 221–223, 226 permitting process 73–74 Swedish sector 54 Swedish Agency for Marine and Water Man agement (SwAM) 226 Sea (UNCLOS) 67, 80 V valves 271 kicker line 253 relief 273 (see also isolation valves; shutdown valves) Van Veen Grab 215 velvet scoters 229 vent stacks 257 vessels 156–157 (see also pipe carrier vessels; pipelay vessels; survey vessels) vibrocorer 29 video, interactive 86 visual inspections 261, 267 Voronov, Andrey 261 W T Tali, Pietro F. 119 “telescope” design 44–45, 58, 141, 269 TEN-E (Trans-European Network for Energy) 21, 31 terrestrial flora and fauna 213, 219 tether management system (TMS) 50, 61, 184 Thomsen, Thomas 73 TMS (tether management system) 50, 61, 184 transboundary context 67–68, 70, 72 Trans-European Network for Energy (TEN-E) 21, 31 transport see logistics trawl gear 81 trenching 133, 137, 188, 217, 231 environmental considerations 217, 231 soil management 137, 217, 231 vessels 158 Troms Pollux 140, 143 turbidity of seawater 211, 230 warehousing 258 Warnig, Matthias 3–5, 25, 95, 119, 240, 287 water currents 235 water quality indicators 220, 221–223 water quality monitoring 211, 214, 215, 216, 224–225, 227, 230 water turbidity 211, 230 weld testing 175 welding 148, 149, 150–151, 152, 153, 174–175 end of line 192 pipeline sections 141, 177, 200–203 quality assurance/control 121 welding plugs 201 WestLB (later Portigon) 114 Wieth-Knudsen, Laila 80–81 wind farms 32, 58, 59, 280 WINGAS GmbH 285 Wintershall see BASF/Wintershall wire cage reinforcement 109, 111, 122 wrecks see shipwrecks WWF 78, 79 U Z UFK (Ungebundene Finanzkredite) 94, 107 UGSS (Unified Gas Supply System of Russia) 16, 241 ultrasonic testing 175 UNCLOS (United Nations Convention on the Law of the Sea) 67, 80 underwater noise 227, 233 underwater tie-ins 141, 177, 200–203 underwater welding habitat 141, 178–179, 180, 201–202 Ungebundene Finanzkredite (UFK) 94, 107, 113 UniCredit 114 Unified Gas Supply System of Russia (UGSS) 16, 241 United Metallurgical Company see ZAO OMK United Nations Convention on the Law of the Zirnig, Werner 217 Zug Control Centre 241, 244, 245, 247 Index 297 Credits Editorial oversight Ulrich Lissek, Communications Director, Nord Stream AG Jens D. Müller, Deputy Communications Director, Nord Stream AG Thomas Eugster Photographer Swiss photographer Thomas Eugster has been documenting the Nord Stream Pipeline project since April 2010. The people behind the construction and operation of the pipelines are as much a focus of his photos as the technical aspects of the project. He has been working as a freelance photographer for over 20 years, with a key interest in engineering, as well as cultural, travel, and social themes. His assignments have taken him to every continent, and his photos are published in consumer and corporate magazines around the world. Editor-in-chief Michèle Bodmer, Corporate Publishing Manager, Nord Stream AG Managing editor Janet Anderson, Freelance editor Project manager Henrieke Neitzel, Kircher Burkhardt GmbH Writers Alessandro Alviani Janet Anderson Michèle Bodmer Kevin Cote David Gilliver Jeremy Gray Chris Hayes Jens D. Müller Dave Rimmer Stuart Spear Miriam Widman Editing/text production Janet Anderson Michèle Bodmer Deanne Corbett Dave Rimmer, KircherBurkhardt GmbH Proofreading think global Editorial support/Distribution Sabie Casuso, PA to Communications Director, Nord Stream AG F&F/Timeline support Steffen Hartmann, Hill + Knowlton Strategies Dainius Velykis, Hill + Knowlton Strategies Chief art director Michael Pfötsch, Kircher Burkhardt GmbH Art director Angelika Cords, Kircher Burkhardt GmbH Infographics Ben Kleinberg, Kircher Burkhardt GmbH Illustrations All illustrations by Viktoriamarie Schiffler With the exception of: Page 3: Niklas Hughes Page 121: Niklas Hughes Photography All photographs by Thomas Eugster With the exception of: Page 21, Nord Stream Page 21, 3918161, Fotolia Page 40, Bactec Page 42, Nord Stream Page 44, Nord Stream (2) Page 59, Nord Stream Page 66, 95764650, Getty Images Page 72, Nord Stream Page 74, Nord Stream Page 90, 00000109585885, Corbis Germany Page 93, Nord Stream Page 120, Nord Stream Page 138–139, Nord Stream Page 190–191, Nord Stream Page 196–197, Nord Stream Page 206, Ingo Arndt Page 208, 003180310666h, Mauritius Images Page 208, 10859222, Fotolia Page 245 Nord Stream Page 247, InterPress (2) Page 252–253, InterPress (2) Page 258, Nord Stream (2) Page 278, 76730761, 9716824, Shutterstock (2) Page 280, 42-21467398, 42-24099336, Corbis (2) Creative publishing agency Kircher Burkhardt GmbH Heiligegeistkirchplatz 1 10178 Berlin, Germany www.kircher-burkhardt.com Printer H. Heenemann GmbH & Co. KG Buch- und Offsetdruckerei Bessemerstrasse 83–91 12103 Berlin, Germany www.heenemann-druck.de Publisher Nord Stream AG Grafenauweg 2, P.O. Box 6304 Zug, Switzerland + 41 41 766 91 91 www.nord-stream.com printed May 2013