CEO: Nord Stream 2 gas link construction to be completed by end-August

Moscow, July 13 - Neftegaz.RU. In an interview with Handelsblatt, Nord Stream 2 AG CEO Matthias Warnig also said he was certain that Ukraine would retain a role in the transit of Russian gas to Europe.
Warnig said:

• Nord Stream 2 was now 98% complete, with one 27.5 Bcm/year string already finished and the remaining 2% of work to be carried out on the second 27.5 Bcm/year string
• We expect the construction work to be finished by the end of August

He said work had already begun on the testing and certification of the completed string, and that it would take 2 to 3 months to carry out this work for each line.
With the 1^st string completed in June, Warnig's comments suggest that that line could become operational by September at the latest.

There have been questions over which entity would certify Nord Stream 2 as complete after Norway-based DNV GL in January said it would no longer provide pipeline integrity verification services for the pipeline due to the threat of US sanctions.

Warnig said:

• The US sanction threats have made our work much more difficult in every respect, and this also applies to certification
• But we are working on solutions and are sure we will find a way. In the end, we will have a pipeline that meets all certification requirements and international industry standards

In May, the administration of US President Joe Biden decided not to impose sanctions against Switzerland-based Nord Stream 2 AG and its CEO Warnig, issuing waivers for both.
The US State Department said that applying those sanctions would «negatively impact US relations with Germany, the EU, and other European allies and partners».

However, both the US and Germany have since said they would look to come up with proposals that would mitigate the impact of Nord Stream 2 once it is operational, particularly with regard to Ukraine.

Ukraine transit
Kyiv has repeatedly said that Nord Stream 2 is an existential threat to Ukraine as Russia would no longer rely on its western neighbor for gas transit to Europe.

Warnig declined to speculate on what concessions could be appropriate in order for the US to accept Nord Stream 2 coming online.
But, he said, he was certain Ukraine would continue to play a role in Russian gas transit.

Russia's Gazprom has agreed to transit 40 Bcm/year of Russian gas via Ukraine from 2021 until 2024 -- down from a recent peak of 94 Bcm in 2017 -- as it looks to divert gas away from Ukraine into Nord Stream 2.
Warnig said:

• As early as May 2015, Chancellor Angela Merkel insisted that gas transit through Ukraine must be permanently secured even after the completion of Nord Stream 2
• The transit of Russian gas through Ukraine will continue to be an integral part of the gas transport from Russia to Europe after 2024
• I do not have the slightest doubt about that
• I assume that this already has been been raised in government talks between the German government and Russia
• The topic will certainly also be part of the talks between Chancellor Merkel and US President Biden

Merkel is due to travel to Washington to meet with Biden on July 15.

Hydrogen role
Warnig also said Nord Stream 2 could carry hydrogen in the future and would be ready to do so within 10 years.
He said:
Promising preliminary tests have already been carried out

• Material tests are still underway, although the fact that the testing and certification companies are holding back due to the threat of sanctions is proving to be a challenge
• All in all, it seems very realistic that in 10 years at the latest we will be able to blend hydrogen into one or both lines and transport it