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Nord StreamThe New Gas Supply Route for Europe

A link between Russia and the EU via the Baltic Sea

It will carry natural gas to businesses and homes

Transport up to 55 billion cubic metres of gas each year enough to supply 25 million households

There are 4 companies involved in the construction:

OAO Gazprom

BASF/Wintershall Holding AG

E.ON Ruhrgas AG

N.V. Nederlandse Gasunie

It will be 1,220 km long

It will consist of 2 parallel lines:

The first line:o 27.5 billion cubic metres

o Completion in 2011

The second line:o Completion in 2012

o It would double annual capacity toabout 55 billion cubic metres

Total investment is estimated at 7.4 billion Euros

The Route

Vyborg, Russia to Greifswald, Germany

Via the Baltic Sea

There will be a 917 km long onshore connection to the mainline in the Russian territory, its is being built by Gazprom, itconnects the Nord Stream to the Russian gas transmissionssystem

From Greifswald to the south and west of Germany two otherconnections will be built, the total length will be 850 km, it willbe built by WINGAS and E.ON Ruhrgas

The main line of the Nord Stream will go to Germany, fromthere it can be transported to many different countries inEurope, such asDemark, theNetherlands, Belgium,the UK and France

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Why is the pipeline so important for Europe?

It will help the energy security of the continent by transportingEuropean gas to European countries

It will strengthen relationships with the worlds largest gasproducer, Russia

Gas imports to the EU are expected to rise by 195 billion cubicmetres by 2025 the Nord Stream could provide 25% of thisextra demand

Most of the supplies to the Nord Stream will come from theYuzhno-Russkoye oil and gas field, this is one of the largest

fields in the world and will be supplied by Gazprom this willmean the supply to Europe will be quite secure, without therisk of the natural gas running out too soon

Without the Nord Stream the demands for gas in Europe willexceed the supplies that they receive, therefore they will runout

It will meet about 25% of Europes additional import needs

It provides gas to the northern countries of Europe, although itproduces many transit states, which could cause geopoliticalissues between countries

Environment and Safety

Will be built using environmentally sound technology

Conducted a number of studies into the ecosystem of theBaltic Sea, these results are considered in the planning of thepipeline

Carrying out EIA (Environmental Impact Assessment) on theroute of the pipeline

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South StreamEuropes Energy Security

Estimated investment: 7-10 billion Euros

Estimated completion: end of 2015

Key players:

Gazprom

Eni

South Stream AG

Gaz de France

Saipem Lead contractors and designers

It would produce 30 billion cubic metres per year

63 billion cubic meters per annum pipelines design capacity

Intergovernmental agreements have been signed betweenRussia and:

Bulgaria January 18, 2008

Serbia January 25, 2006

Hungary February 28, 2008

Greece April 29, 2008

The Route

Onshore Section in Russia:

Pochinki Compressor Station to the Black Seacoast

Offshore Section:

Through the Black Sea

900km long

2000+ m deep

Onshore Section in Europe:

Arrives at Bulgaria

May go through Serbia, Greece, Hungary, Austriaand Slovenia

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Why is the pipeline so important for Europe?

It will increase the energy security of Europe

It provides gas to the southern countries of Europe withoutcreating too many transit states; which can cause geo political

problems in the future By 2020-2025 Europe will demand 200 billion cubic meters

more of gas per year

Diversify routes and cut the length of the routes of thepipelines by going offshore rather than through, and thereforedisrupting, countries

Environment and Safety

Natural gas is the cleanest of the fossil fuels

Temporary and local effect on the marine environment proven by the Blue Stream pipeline

The risk of potential pollution can be minimised

The companies constructing this pipeline have a lot ofexperience in building them and know how to minimise therisks of environmental damage, e.g. Gazprom