Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBFOM All Private Finance
# of Projects: 1
100% of the Results

Background informationProject Created: April 13, 2010

Project Name: Baltic Sea Pipeline (Nord Stream)
Year in Operation:
Sector: Transportation
Subsector: Transportation Terminal, Energy Transmission (Oil, Gas, Power)
Status: Design / Construction
Type: New Facility
Description: 48 inch, 758 mile long natural gas pipeline connecting Russia and Germany through the Baltic Sea, passing through the waters of Finland, Sweden, and Denmark.
Delivery Method as described in the country where it's located: Design Build Operate Maintain
Is the project still active: Yes
Comments: From Government's point of view, this is DBOM: Predliminary Design by Intec Engineeirng. Design commenced in March 2007 by Snamprogetti. Construction of line will be performed by Saipem. Major supply items (pipe and compressors are separately contracted by Nord Stream AG (a project company to deliver the line).

Project Locations

Address:
City: Vyborg
State:
Country: Russian Federation

Address:
City: Griefswald
State:
Country: Germany, Federal Republic of

Address:
City: Rehden
State:
Country: Germany, Federal Republic of

Address:
City: Olbernhau
State:
Country: Germany, Federal Republic of

Souces of Project Support (Non-monetary)

Checkbox Checked Access to Land: National legislation supporting the project, and environmental impact assessment, in each of countries through which gas line passes.
Checkbox Checked Environmental Clearance: National legislation supporting the project, and environmental impact assessment, in each of countries through which gas line passes.

Souces of Project Support (Monetary)

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: 14 billion euro project will be financed 70% by external financing from banks. Financing is supported by 25 year transportation commitment contracts signed by Nord Stream with the German gas company Wingas, a JV of Gazprom and Wintershall (BASF). Similar contract with Danish DONG Energy (20 yr) for delivery of 1 billion cubic meters of gas per year to Denmark. Contract to extend existing agreement with E.On Ruhrgas (4 billion cu m per year) and Gaz de France (now GDF Suez) for 2.5 billion cu m per year).

Checkbox Checked

From Producers as Equity: 14 billion euro project will be financed 30% from equity contributed by shareholders of GazProm in proportion to their stakes in the project. Shareholders: Gazprom - 51%; Wintershall (BASF) - 20%; E.ON AG - 20%; Nederlandse Gasunie NV - 9%. GDF Suez SA is expected to purchase a 9% interest from Wintershall and E.ON AG.

Project Delivery & Finance Method

Project Delivery:
All Public Finance. Public Sponsor contracts for initial design, and separately contracts for initial construction. Public Owner operates and maintains the resulting facility.
Is there an independent checking engineer? Yes
Project Finance Method: All By Private Sponsor

Procurement Approach

Project Component
Qualifications
Based Selection
Request for
Qualifications
Request for
Proposals
Invitation
for Bids
Unsolicited
Proposals

Term for Key Components & Forms of Contract

Project Component
Years
Quarters
Combined Term: Initial Design, Construction, O&M Period
-1
0
Forms
Description
Other
Unique forms established by Nord Stream. 

Project Value (If and As Known)

Date of Estimated Project Value: April 10, 2010
Project Value
Hard Cost
Hard & Soft Costs
Total
> $10 Billion US
(none)
Array ( )

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