Uniper and four European energy companies sign financing agreements with the developer of the Nord Stream 2 pipeline project
Uniper and four European companies – ENGIE, OMV, Shell and Wintershall – signed today financing agreements with Nord Stream 2 AG, the company responsible for the planning, construction and future operation of the Nord Stream 2 pipeline. Gazprom remains the sole shareholder of Nord Stream 2 AG.
Uniper has committed to provide financing for up to €950m million reflecting 10% of the total cost of the project, which is currently estimated to be €9.5 billion. About 30% of such financing will be covered by a long-term funding facility, expected to be drawn down by Nord Stream 2 AG in 2017. The remaining financing shall be covered by a joint project finance structure. In addition, Uniper is currently investigating a potential partnering approach to share Uniper’s engagement in the financing of the Nord Stream 2 project.
The financial commitment by the European companies underscores the Nord Stream 2 project’s strategic importance for the European gas market, contributing to competitiveness as well as medium and long-term energy security especially against the background of expected declining European production.
The 1,220-kilometer Nord Stream 2 gas pipeline, with a total capacity of 55 billion cubic meters a year, will provide a direct link between reliable Russian gas reserves and European gas consumers from the coast of Russia via the Baltic Sea to Greifswald, Germany. Construction work will begin in 2018 and will be completed by the end of 2019.
This press release may contain forward-looking statements based on current assumptions and forecasts made by Uniper SE management and other information currently available to Uniper. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Uniper SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.
