Nord Stream 2 seeks change to Danish permit

The project developer of Russian state-controlled Gazprom's 55bn m³/yr Nord Stream 2 pipeline has applied for an amendment to its Danish construction permit that would allow pipe-laying work using a broader variety of vessels.

The request relates to the potential deployment of pipe-laying vessels that use anchors for positioning, Nord Stream 2 told Argus. The current permit — issued by the Danish Energy Agency (DEA) in October 2019 — allows only for the use of vessels with dynamic positioning systems, meaning that they would not be required to drop anchor to carry out pipe-laying work, to reduce the risk of setting off unexploded ordnance. The DEA had said this was a "key" condition of the permit.

Nord Stream 2 expects the agency to process the request within about one month, it said.

Anchored pipe-laying vessels were used successfully in Danish waters during the installation of Gazprom's 55bn m³/yr Nord Stream 1 pipeline and for already-completed pipe-laying work at Nord Stream 2 in German waters, the developer said. The amendment is a "precautionary measure", submitted in accordance with the guidance received from the DEA, Nord Stream 2 said.

No offshore work has been done on the project since contractor Allseas suspended work just before Christmas last year owing to US sanctions targeting pipe-laying vessels. Russian state-owned vessel Akademik Cherskiy could be suitable to complete the work in line with current permit conditions. But Nord Stream 2 did not confirm whether the vessel would be involved in completing the project and has said it will make public its plans "in due time". Nord Stream 2 is 94pc complete, with only 144km of pipeline still to be laid in Danish and German waters.

The Akademik Cherskiy has remained at Mukran on the German Baltic Sea island of Rugen since arriving in mid-May from Russia's far east. Russia-flagged pipe-laying barge Fortuna — owned by Russian firm MRTS — has also remained docked at Mukran in recent months. Unlike the Akademik Cherskiy, the vessel is not equipped with a dynamic positioning system.

The restart of pipe-laying work could expose any involved vessels to US sanctions. And a proposed amendment to the US law enacting sanctions would widen the scope of sanctions, if passed and signed into law. The amended law would target any entity that "provided services for the testing, inspection, or certification necessary for, or associated with the operation of the Nord Stream 2 pipeline", as well as entities that provide underwriting and insurance to pipe-laying vessels or that facilitate ship retrofitting and upgrading.

German regulator Bnetza is responsible for the possible certification of Nord Stream 2. The regulator will issue the certification to the relevant transport network operator if the operator can prove that it is organised in accordance with respective unbundling requirements, Bnetza said.

But provisions on technical investigations and tests that have to be carried out before commissioning do not fall within Bnetza's responsibility, the regulator said. These tests, inspections and certifications must be carried out during pipe-laying and pre-commissioning prior to the final approval of such a pipeline, the Stralsund mining authority said. The authority is responsible for final approval for commissioning, including the review of all results of such tests and inspection reports provided by the permit holder, in this case Nord Stream 2, it said.

By Jacob Mandel