Nord Stream repair may take at least six months, says lawmaker
Four Nord Stream gas pipeline leaks have been uncovered, with the most recent one being pinpointed by Sweden’s coast guardYUZHNO-SAHALINSK, September 29. /TASS/. Repairing the ruptures that occurred on the lines of the Nord Stream 1 and Nord Stream 2 gas pipelines may take more than six months, Pavel Zavalny, who heads the State Duma’s (lower house) Committee on Energy, believes.
In his opinion, there are two ways to fix the damage: making a caisson (a watertight chamber used in underwater construction work or as a foundation - TASS), or hoisting the gas pipelines to the surface.
"One way is to manufacture a caisson that will be brought to the pipe. Work will be carried out in the caisson to either replace the pipe or fix it. The depths allow this. Of course, a complex engineering underwater structure would have to be created. That being said, the timeframe - the design, manufacturing and the works - all this would take not just months but even longer. The second option is lifting [the pipes]," he told reporters on the sidelines of the Sakhalin Oil and Gas forum on Thursday.
According to him, raising the gas pipeline to the surface would require cranes with a lifting capacity of 3,000 tons.
"As part of the design of these gas pipelines, the risks of its work being disrupted were factored in, and, accordingly, the possibility of repairs was taken into account. Therefore, the pipe was laid in such a way that would make it possible to hoist it up. This will also take time, technical equipment, cranes, ships, and so on. But, in my opinion, technically it is possible. It may take a long time, it's not a month or two, it's six months or a year, at least," Zavalny explained.
He noted that the decisive factor in choosing options is the availability of ship equipment to carry out repairs.
"Probably, these pipe-laying vessels are under sanctions, so they simply won't be allowed to be used to repair the gas pipeline," the legislator admitted.
YUZHNO-SAHALINSK, September 29. /TASS/. Repairing the ruptures that occurred on the lines of the Nord Stream 1 and Nord Stream 2 gas pipelines may take more than six months, Pavel Zavalny, who heads the State Duma’s (lower house) Committee on Energy, believes.
In his opinion, there are two ways to fix the damage: making a caisson (a watertight chamber used in underwater construction work or as a foundation - TASS), or hoisting the gas pipelines to the surface.
"One way is to manufacture a caisson that will be brought to the pipe. Work will be carried out in the caisson to either replace the pipe or fix it. The depths allow this. Of course, a complex engineering underwater structure would have to be created. That being said, the timeframe - the design, manufacturing and the works - all this would take not just months but even longer. The second option is lifting [the pipes]," he told reporters on the sidelines of the Sakhalin Oil and Gas forum on Thursday.
According to him, raising the gas pipeline to the surface would require cranes with a lifting capacity of 3,000 tons.
"As part of the design of these gas pipelines, the risks of its work being disrupted were factored in, and, accordingly, the possibility of repairs was taken into account. Therefore, the pipe was laid in such a way that would make it possible to hoist it up. This will also take time, technical equipment, cranes, ships, and so on. But, in my opinion, technically it is possible. It may take a long time, it's not a month or two, it's six months or a year, at least," Zavalny explained.
He noted that the decisive factor in choosing options is the availability of ship equipment to carry out repairs.
"Probably, these pipe-laying vessels are under sanctions, so they simply won't be allowed to be used to repair the gas pipeline," the legislator admitted.
Nord Stream pipeline ruptures
Four Nord Stream gas pipeline leaks have been uncovered, with the most recent one being pinpointed by Sweden’s coast guard.
Earlier, the Nord Stream AG company reported that three threads of the Nord Stream 1 and 2 offshore gas pipelines had suffered unprecedented damage on Monday. Kremlin Spokesman Dmitry Peskov stated that Moscow was "deeply concerned about the news" and did not rule out that the pipelines’ operation could have been disrupted by an act of sabotage. Swedish seismologists later reported that two explosions had been recorded along the Nord Stream pipelines on Monday.
The UN Security Council will discuss the situation with the pipelines at a meeting on September 30 convened at Russia’s request. The Danish Energy Agency reported that a large amount of gas had spilled into the sea. Aircraft and ships are barred from approaching the site any closer than five nautical miles.
Four Nord Stream gas pipeline leaks have been uncovered, with the most recent one being pinpointed by Sweden’s coast guard.
Earlier, the Nord Stream AG company reported that three threads of the Nord Stream 1 and 2 offshore gas pipelines had suffered unprecedented damage on Monday. Kremlin Spokesman Dmitry Peskov stated that Moscow was "deeply concerned about the news" and did not rule out that the pipelines’ operation could have been disrupted by an act of sabotage. Swedish seismologists later reported that two explosions had been recorded along the Nord Stream pipelines on Monday.
The UN Security Council will discuss the situation with the pipelines at a meeting on September 30 convened at Russia’s request. The Danish Energy Agency reported that a large amount of gas had spilled into the sea. Aircraft and ships are barred from approaching the site any closer than five nautical miles.
Damaged Nord Stream threads contained about 800 mln cubic meters of gas — Gazprom
UNITED NATIONS, October 1. /TASS/. Three threads of the Nord Stream 1 and 2 pipelines contained about 800 mln cubic meters of gas at the time when an incident took place, Spokesman for Russia’s Gazprom gas giant Sergey Kupriyanov told a UN Security Council meeting.
"According to current estimates, three threads of the gas pipelines contained about 800 million cubic meters of gas at the time of the incident. For reference, it is the amount of gas that Denmark uses in three months. Data about a sharp drop in pressure and gas leaks makes it possible to say with confidence that the integrity of the pipelines was violated by physical damage," he pointed out, adding that although no gas was being transported via the gas pipelines at the time of the incident, both gas pipelines had been ready for operation.
Gazpropm has started to search for solutions to restore the efficiency of the Nord Stream system but it’s impossible to say how much time it will take at the moment. "One thing that can be said for sure is that it is a very difficult technical task," Kupriyanov noted.
DPA - Wednesday
The operator of the Nord Stream 1 pipeline says repairing the leak is an option once the damage has been assessed.
An aerial photo provided by the Danish Defense Command shows the Nord Stream 2 gas leak near Bornholm. Following the damage to the Nord Stream gas pipelines under the Baltic Sea, authorities in Germany and Denmark continue to search for the cause. Danish Defence Command/dpa© DPA
A spokesman for Nord Stream AG told dpa that it wants to inspect the damage as quickly as possible once the authorities have lifted the closure zones that have been imposed.
The spokesperson declined to give information on possible costs and who would bear them.
Nord Stream 2 AG spokesman Ulrich Lissek said that "no one can seriously say at the moment what the situation is down there," but that "the structural integrity of the pipeline must be massively damaged."
For Nord Stream 2 AG, exploration or repair on the pipeline are likely to be difficult because the company has been under US sanctions since the beginning of the year.
The German government said Wednesday that "there can be no natural cause for this incident." Government spokesman Steffen Hebestreit declined to describe it as an attack, however.
A general view of the pipe systems and shut-off devices at the gas receiving station of the Nord Stream 2 Baltic Sea pipeline and the transfer station of the Eugal gas pipeline (foreground -European Gas Link). The European Union considers sabotage to be the likely cause of the leaks from the Nord Stream 1 and 2 gas pipelines and has threatened to take countermeasures. Stefan Sauer/dpa© DPA
An aerial photo provided by the Danish Defense Command shows the Nord Stream 2 gas leak near Bornholm. Following the damage to the Nord Stream gas pipelines under the Baltic Sea, authorities in Germany and Denmark continue to search for the cause. Danish Defence Command/dpa© DPA
Unused pipes for the Nord Stream 2 Baltic gas pipeline are stored on the site of the Port of Mukran. After a pressure drop was detected in a short time for the two Baltic Sea pipelines Nord Stream 1 and 2, three leaks have now been identified. Stefan Sauer/dpa© DPA
Nord Stream says it seeks permits to start
damage assessment of pipeline
MOSCOW (Reuters) - Nord Stream AG, the operator of the Russia-led Nord Stream 1 offshore gas pipeline said on Thursday it intended to start assessing the damage to the pipeline as soon as it receives necessary official permits.
It said access to the area of incidents may be allowed only after the pressure in the gas pipeline has stabilised and the gas leakage has stopped.
The operator added that until the completion of the damage assessment, it is not possible to predict the timeframe for restoration of the gas transmission infrastructure.
(Reporting by Reuters; Editing by Chris Reese)
Thu, September 29, 2022
MOSCOW, Sept 29 (Reuters) - Russia's Nord Stream 1 gas pipeline may make use of the Pipeline Repair and Subsea Intervention (PRSI) Pool that provides repair equipment to member companies, it said in a statement to Reuters.
The Europe Union was investigating leaks in the Gazprom-led Nord Stream 1 and 2 pipelines in the Baltic Sea this week and said it suspected sabotage.
The PRSI Pool provides pipeline repair equipment to its members as part of a cooperative of operating companies and includes Norway's Equinor and Nord Stream 1 operator Nord Stream AG, among others.
"Nord Stream AG is a member of the PRSI Pool and may engage PRSI at a later stage, when the repair strategy and solution have been developed," Nord Stream AG said in an emailed statement.
The Gazprom-led Nord Stream 1, which has an annual capacity of 55 billion cubic metres, was halted on Aug 31 for what Gazprom said would be three days of repair work. Gazprom failed to restart flows, however, saying it was unable to carry out the required work due to Western sanctions imposed on Moscow.
The operator of Nord Stream 2, which was built alongside Nord Stream 1 but has not been commissioned, did not immediately reply to a Reuters request for comment.
Sweden's coast guard discovered a fourth gas leak on the damaged Nord Stream pipelines this week, a spokesperson told the Svenska Dagbladet newspaper.
Copyright © 2022 Energy Intelligence Group
Published:
Wed, Sep 28, 2022
Author
Noah Brenner, London
Editor
David Pike
Damage from alleged explosions at the Nord Stream and Nord Stream 2 pipelines in the Baltic Sea could be difficult to repair and will be complicated by growing Western sanctions against working with Russia, according to a well-placed industry source.
Danish and Swedish investigators continue their work at two leaks on the Nord Stream pipeline and another leak on Nord Stream 2, believed to have been caused by sabotage.
The industry source, who is close to the projects, stressed the complication of repairing such damage to undersea pipelines, and predicted that Nord Stream is likely to remain out of action throughout this winter and potentially longer.
The two pipes were each designed to bring 55 billion cubic meters per year of natural gas from Russia to Germany, although neither was flowing at the time of this week's incident — Moscow had suspended flows through Nord Stream and the Ukraine crisis prevented the start of Nord Stream 2.
Until additional assessments of the damage are made public, it is impossible to know how hard it might be to repair either of the lines, a process that Russian officials have said must include Gazprom as the outright or majority owner of the two pipes.
"I think it's too early to say that it is absolutely beyond repair," the source said. "I think that we have to expect the pipe to be, in any case, out of action through the winter."
Any number of factors could play into the length of time it would take to repair the damage and the cost required to bring the line back into service. "The greater the length of pipe you have to bring up and the more work you have to do, the more time it would take," the source said.
The job would be further complicated by the incursion of seawater into the line.
“Seawater definitely is a problem" as it can corrode and damage portions of the pipeline beyond the initial holes.
Even with a speedy assessment of the damage and response, there is no certainty that Nord Stream would be back online even by the winter of 2023/24: "I wouldn’t put my money on it," the industry source said.
Hampered by Sanctions
The conflict in Ukraine, which has seen energy supplies increasingly used as a weapon by Russia and the West, poses an obvious obstacle to any cooperative attempt to repair the damage.
Western sanctions add another layer of complication, the source said.
Sanctions put in place before Russia's invasion of Ukraine made construction of the Nord Stream 2 line difficult, as the US sought to hamper Gazprom's ability to finish the project by targeting special pipelaying vessels.
The recent proliferation of measures limiting the provision of services and technologies to Russia will make any repair even harder.
"The list [of service firms able to work on the project] would be shorter … than in normal times," the source said.
All these challenges assume that Gazprom — which owns 51% of Nord Stream and 100% of Nord Stream 2 — would try to move ahead with repairs.
But Germany has already cut Russian gas imports from 40% of its total supplies to just 9% of total consumption — albeit with a push from Gazprom itself, which has systematically stepped down flows over the past six months, citing a series of technical problems.
Given plans by the German government to phase out Russian gas altogether, there may be limited commercial incentive to make the potentially costly repairs needed to return the lines to service.
No Accident
While speculation has swirled around who might have been responsible for the damage to the Nord Stream lines, there seems to be little doubt that they were purposefully sabotaged.
"The lines are very well built. They're solid. They're state-of-the-art," said the industry source. "I would not expect … a simple industrial incident because of lack of safety precautions or whatever."
The pipeline routes were surveyed to ensure there was no unexploded ammunition from past conflicts, and they were leveled and prepared to prevent steep slopes. "It very much looks like a deliberate act of sabotage," the source said.
Doubts Mount Over Viability of Nord Stream
Repair: Energy Update
, Bloomberg News
(Bloomberg) -- Germany set out a plan to limit gas prices for homes and business that will need €200 billion ($195 billion) of borrowing, a move that risks keeping consumption high as shortages loom this winter.
Households aren’t yet listening to calls to use less gas with the country’s network regulator warning earlier that consumption was higher than usual over the past week as temperatures dropped. Savings of at least 20% are needed to avert a shortage of the fuel this winter.
Gas is still leaking from the damaged Nord Stream pipelines as nations step up security at critical energy infrastructure to prevent further potential sabotage. The fuel has been bubbling up from the pipelines since earlier this week, with Denmark estimating that the links would empty by Sunday. Detailed surveys of the damage can only be carried out once the gas has stopped leaking.
Key Developments:
- Germany will need to borrow €200 billion to fund gas bill discount
- German regulator warns gas use needs to fall at least 20% to avoid shortage
- Finland says only a state actor is capable of Nord Stream sabotage
- Nord Stream pipelines have four leaks
- Gas futures decline after two-day rally
(All times are UK.)
UK Authorities Discussing Increased Vigilance of Assets (4:56 p.m.)
UK authorities and energy asset operators are “engaged” in discussions over whether extra security measures are needed at facilities including pipelines, according to Offshore Energies UK, Britain’s main lobby group for the oil and gas industry.
Britain’s offshore facilities already have well-tested security arrangements, but it’s sensible to see if there’s “anything else we could and should be doing to be prepared from a physical security perspective,” Mark Wilson, OEUK operations director, told reporters on Thursday.
UK Becomes Net Electricity Exporter (4:46 p.m.)
The UK exported more power than it imported during the second quarter of the year for the first time since 2010. The volume both of electricity and gas leaving the UK jumped nearly 600% in the three months to June this year compared to the previous year, according to UK government data.
It’s unclear whether such high volumes of exports can be sustained. There’s likely to be rising demand within the UK as it gets dark and cold, meaning some flows out of the country may have to be curtailed when supplies get tight.
RWE to Restart Three Idled Lignite Plants (2:55 p.m.)
RWE AG will bring back three lignite-fired power plants that had been on standby in October, the company said in a statement.
Germany plans to rely more on coal and lignite this winter to help keep the lights on and reduce gas use in electricity generation.
Algeria Locks In Higher Gas Price Deals (2:50 p.m)
Algeria will benefit from higher natural gas prices as it locks in deals with two European Union nations anxious to secure enough natural gas supplies for the coming winter.
State-controlled Algerian energy producer Sonatrach Group concluded a deal with Italy’s Enel SpA on Wednesday and said it will soon announce one with Naturgy Energy Group SA, ending a months-long stalemate with the Spanish utility over contractual price revisions.
Emir of Qatar to Meet European Leaders Next Week (2:30 p.m.)
Qatar’s ruler plans to attend an informal gathering of European leaders in Prague on Oct. 6, where he will also have the chance to hold bilateral meetings with some of the leaders, according to a person familiar with the matter.
Sheikh Tamim bin Hamad Al Thani’s trip comes as European countries have been jockeying to sign deals with Qatar to access more of its LNG exports.
Germany Pushes Uniper to Get Rid of Russian Assets (1:50 p.m.)
Germany risks being left holding 2.2 billion euros of unsellable Russian energy assets when it takes over Uniper SE at the end of the year.
The government may have no choice but to give up the assets. Even if a sale were possible, President Vladimir Putin has made it almost impossible for international energy companies to secure big financial gains when they exit Russia.
Germany to help with Gas Bills (1:35 p.m.)
The German Chancellor Olaf Scholz set out a plan to limit the impact of soaring gas bills for households and businesses. The measure will be financed by redeploying a fund created to help offset the impact of the coronavirus pandemic and bolstered by €200 billion of borrowing.
Germany is especially vulnerable to the surge in energy costs triggered by the war in Ukraine due to a heavy reliance on imports of Russian gas.
Repairing Nord Stream To Be Challenging (12:30 p.m.)
Repair works at approximately 70 meters water depth will be “a technical challenge”, said Gerald Linke, chairman at Germany’s gas and water association DVGW. Works are carried out in submersible diving bells that are lowered over the pipeline.
Water may enter the pipeline, depending on the size of the leak and the topography of the pipeline, Linke said. To take water out, overpressure needs to be applied or water could be forced back by so-called pigs, an equipment with a special pushing device. Pigs are also used to tightly close the two pipeline strings to the left and right of the damaged site.
Europe Looking at How to Increase Protections (12:15 p.m.)
The European Commission says it’s supporting the national authorities conducting the investigation into the leaks from the Nord Stream pipelines, the EU executive’s spokesperson Dana Spinant said at a briefing on Thursday. Brussels is also working with member states to see how to increase protection and resilience of the infrastructure.
Finland Boosts Gas Pipeline Security (11:58 a.m.)
Finland’s network operator Gasgrid has increased security around the Balticconnector pipeline, which connects the Nordic country with Estonia, Finance Minister Annika Saarikko told reporters Thursday.
The attacks on the Nord Stream pipelines earlier this week highlight Finland’s need to ensure it’s sufficiently prepared against threats to critical infrastructure, Saarikko said following a meeting of the cabinet’s preparedness group.
Europe’s Industry Pleads for More Help (11:26 a.m.)
“More immediate and efficient measures” are needed to solve the energy crisis in Europe, trade groups representing energy-intensive industries from fertilizer to glass-making said in a joint statement. Many sectors are suffering plant shutdowns and layoffs as gas prices hold at “unbearable” levels, they said, and called for electricity prices to be disconnected from gas prices.
Germany Nears Deal on Gas Levy Substitute (10:45 a.m.)
Germany’s coalition parties are close to a deal on introducing a so-called gas-price brake as an alternative to a planned levy on consumers, Handelsblatt reported, citing unidentified people familiar with the talks. The government will earmark about 150 billion to 200 billion euros to cover the cost of the price cap, to be funded through the Economic Stabilization Fund that was originally created to address the impact of the Covid pandemic.
NATO Promised ‘Determined’ Response (10:42 a.m.)
NATO allies warned any deliberate attack against allies’ infrastructure would be met with a “united and determined response” following the gas pipeline leaks in the Baltic Sea.
In a joint statement, the North Atlantic Council echoed other officials, saying information currently indicates the leaks are the result of “deliberate, reckless and irresponsible acts of sabotage.” They added they are committed to defending against any “coercive use of energy or hybrid tactics by state and non-state actors.”
Even as Poland has blamed Russia for the damage, the NATO statement refrained from naming any names as a joint investigation by Denmark, Sweden and Germany is underway.
German Regulator Warns of Gas Shortage (11 a.m.)
Germany’s network regulator said gas demand was well above average last week as temperatures fell and said savings of at least 20% are needed to avert a shortage this winter.
“This week’s numbers are very sobering,” Klaus Mueller, president of the Bundesnetzagentur, said in an emailed statement, adding that consumption data provide only a “snapshot” and the situation can quickly change. “Savings must also be made when temperatures continue to fall,” he added. The agency said that gas consumption needs to decline by “at least 20%” to prevent a shortage.
Sweden Says Exact Leak Locations Not Known (9:36 a.m.)
Sweden’s Coast Guard became aware of two leaks in the pipelines in Sweden’s exclusive economic zone at the same time as they learned of two in Denmark on September 26, communicating it on their website, according to a spokesman reached by phone. It isn’t known which parts of the pipelines the leaks are in, he said.
Greece to Get LNG From TotalEnergies (9:08 a.m.)
Greece’s Public Gas Corporation of Greece AE has agreed a deal for the supply of two liquefied natural gas carriers a month for the next five months from November 2022 to March 2023, the country’s Energy Ministry said in emailed statement.
Gas Prices Drop (8:00 a.m.)
European natural gas prices declined as much as 5.4% on Thursday after two days of gains as tensions between Russia and the continent threatened further derailment of gas supplies.
Warmer weather from next week is likely to delay heating demand, bringing some relief to prices.
EU Gas Cap Could Push Up Prices (7:30 p.m. Wednesday)
Capping natural gas prices, a move urged by more than a half of member states seeking to quickly contain the crisis, risks increasing demand for the fuel rather than addressing its scarcity if imposed in isolation, the European Commission said in a document seen by Bloomberg News.
To be effective, an intervention in the gas market should limit the influence of Russia’s manipulation of pipeline supplies and reduce Moscow’s revenues, bring down the price of imported gas for consumers and cut excessive price volatility, according to the commission. The document will be discussed by energy ministers meeting in Brussels on Friday.
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