NORD STREAM 2: DENMARK DESISION

PLATTS - 17 Jun 2020 - Denmark expects to rule "within four weeks" on a request from the developer of the Nord Stream 2 gas pipeline from Russia to Germany for permission to lay the line in Danish waters using ships with anchors, a spokesman for the Danish Energy Agency said June 17.

Nord Stream 2 has asked -- as a precautionary measure -- for an amendment to its Danish pipelaying permit to allow the potential use of pipelay ships that use anchors for positioning.

"The Danish Energy Agency expects to be able to make a decision on Nord Stream 2 AG's request within four weeks," the spokesman said.

The Gazprom-owned company had hoped to bring Nord Stream 2 online by the end of 2019, but first permitting issues in Denmark and then the US sanctions meant the project has been delayed.

The 55 Bcm/year pipeline is crucial to Russia's plans to scale down from 2021 the use of the Ukrainian transit corridor in its gas supplies to Europe.

Just 160 km (99 miles) of Nord Stream 2 is left to lay in Danish waters out of the total 2,460 km length.

According to the Danish permit from October last year, pipelaying ships, such as the Pioneering Spirit used by Switzerland-based Allseas to lay much of the pipeline before the US sanctions forced it to halt work, should have dynamic positioning capabilities.

Nord Stream 2 said the technique of using anchored ships was used successfully during the installation of the already operational Nord Stream pipelines in Danish waters, and for the Nord Stream 2 pipelines already installed in German waters.

However, being anchored would slow significantly the progress of a ship laying the pipeline, while ships with dynamic positioning are able to lay pipe at a much faster rate.

With the uncertainty ongoing over how the line will be finished, the US is also pressing to introduce expanded sanctions against the project.

At the start of June, a new US Senate bill was introduced that aims to block completion of the project by expanding existing sanctions to target more companies involved in building the line's final segment.

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