On April 9, the high and mighty were on hand at Portovaya Bay in Russia not far from the border with Finland to mark the start of a project whose genesis dates back to 1997.
Russian President Dmitry Medvedev was on hand as was German Chancellor Angela Merkel (kind of via video link from Berlin), plus her predecessor, Gerhard Schroeder, considered in some European and American circles a 'traitor' for selling out to Gazprom to join as chairman of the Nord Stream board.
The Washington Post wrote back in 2005 that Schroeder's decision was "repugnant."
To make the decision even more unpalatable, it turns out that the chief executive of the pipeline consortium is none other than a former East German secret police officer who was friendly with Vladimir Putin, the Russian president, back when Mr. Putin was a KGB agent in East Germany. If nothing else, Mr. Schroeder deserves opprobrium for his bad taste.
Back to the present and Portovoya Bay. Merkel spared no hyperbole, describing the project "one of the largest energy infrastructure projects of our time."
"With this, the European Union and Russia aim to forge an additional strong connection," the chancellor said in a video broadcast from Berlin.
Medvedev signed a section of pipe and said that "the Nord Stream pipeline will secure reliable gas supply to Europe, and at reasonable prices".
Russia Today called it a "win win" for Europe and Russia.
As the Informant has pointed out the Nord Stream project, yes, while Russian controlled, has significant input from European partners.
Yes, Gazprom has a 51 percent majority stake in the project, not surprising since it will be Russian natural gas flowing through it.
But Germany's BASF-Wintershall and E.ON Ruhrgas also hold 20 percent each and Gasunie of the Netherlands has a nine percent stake.
Gazprom deputy CEO, Alexander Medvedev, boasted that although the pipeline is far from completion, Nord Stream has already signed up customers for the entire supply.
"All the gas volumes have either been contracted, or have been formalized in binding obligations," Alexander Medvedev told reporters.
Humbuggers have said the pipeline is too expensive and Europe does not need more Russian gas.
Gazprom is also facing a global gas glut as demand sags due to global economic woes, and the prospect of new supplies from gas produced from shale rock in the United States.
Quoted by AP, Gazprom CEO Alexei Miller said competition from shale was not an issue in Europe and that the company supported shale gas development as a way to maintain volumes.
Nord Stream vows to build three kilometers of pipeline a day, an incredible rate by any measure.
There are doubtlessly some in Europe, mainly Poland, the Baltics and Ukraine, all being sidelined by the project, hoping things don't go too smoothly.
Merkel said the project would benefit both partners, offering Europe "an important contribution to the security of gas provision," whilst providing Russia with "high stability in the demand for gas."
Nord Stream said that the first three kilometers of the pipeline, which will eventually stretch 1,220 kilometres under the Baltic Sea to Greifswald in northern Germany, had already been laid near the Swedish island of Gotland.
Three specially commissioned ships will be responsible for laying the pipeline. The Castoro 6 is already on the job and in June will be joined by the Castoro 10, which will be based off the coast of Germany. In September the Solitaire will start work in the Gulf of Finland.
If all goes to plan, the pipeline will transport 27.5 billion cubic meters of gas per year. Capacity will double in the following year when a second leg of the pipeline is due to be laid.
The gas should be enough to power an estimated 26 million households.
Environmental groups have raised concerns, saying the pipeline would have adverse affects on the environment.
Medvedev addressed these worries in his speech, but said the demand for energy in Europe was growing and the pipeline was one of the best ways to meet this need.
Russian President Dmitry Medvedev on Friday attended a ceremony near the Finnish border to celebrate the beginning of construction work on the Nord Stream gas pipeline.
The 7.4-billion-euro (9.9 billion dollars) pipeline will from 2011 transport Russian gas to Europe, which the European Union hopes will help to ensure the bloc's future energy security.
Former German chancellor Gerhard Schroeder, chairman of Nord Stream's board, also took part in the ceremony at Portovaya Bay.
German Chancellor Angela Merkel welcomed the beginning of construction work on the pipeline, which she described as "one of the largest energy infrastructure projects of our time."
"With this, the European Union and Russia aim to forge an additional strong connection," the chancellor said in a video broadcast from Berlin.
Merkel said the project would benefit both partners, offering Europe "an important contribution to the security of gas provision," whilst providing Russia with "high stability in the demand for gas."
Nord Stream said that the first three kilometers of the pipeline, which will eventually stretch 1,220 kilometres under the Baltic Sea to Greifswald in northern Germany, had already been laid near the Swedish island of Gotland.
Three specially commissioned ships will be responsible for laying the pipeline. The Castoro 6 is already on the job and in June will be joined by the Castoro 10, which will be based off the coast of Germany. In September the Solitaire will start work in the Gulf of Finland.
If all goes to plan, the pipeline will transport 27.5 billion cubic meters of gas per year. Capacity will double in the following year when a second leg of the pipeline is due to be laid.
The gas should be enough to power an estimated 26 million households.
Environmental groups have raised concerns, saying the pipeline would have adverse affects on the environment.
Medvedev addressed these worries in his speech, but said the demand for energy in Europe was growing and the pipeline was one of the best ways to meet this need.
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