1. Nord Stream: Secure gas supply for Europe
Russian Economic and Financial Forum in Switzerland
Vugar Veysalov, Permitting Manager, Nord Stream AG – Zurich, 16 March 2009

2. Agenda Key facts about Nord Stream Current project status1
Key facts about Nord Stream
Current project status 2
Attractive business opportunities 3
Nord Stream’s financial concept 4 2 2

3. 1. Key facts about Nord Stream
More gas for Europe
1. Key facts about Nord Stream

4. 81% of gas to be imported in 2025, compared to 58% in 2005
Growing need for natural gas in Europe
629 bcm
543 bcm
81%
58%
Imports
42%
EU domestic gas production
19%
2005
2025
81% of gas to be imported in 2025, compared to 58% in 2005
Source: European Commission, DG-TREN, 2007

5. Contribution to energy security
The new gas supply route for Europe consists of two parallel 1,220 km long offshore natural gas pipelines through the Baltic Sea
Enhances Europe’s security of supply by delivering 25% of additional gas imports
Transports gas directly to the countries and customers where it is most needed: Germany, the UK, the Netherlands, Belgium, France, the Czech Republic and other countries
Complements existing routes from Russia to Western Europe (the “northern route”)
Contributes to the reduction of greenhouse gases by transporting natural gas which has the lowest CO2 emission level of all fossil fuels
Directly connects Russia, with the largest available gas reserves in the world, to European gas networks

6. Project on track – Present situation
Completed
Feasibility study
Operational company
General technical design
EIA programme
Notification of Baltic Sea countries
Logistical concept
Pipes production, pipeline laying and logistics contracted
Route optimisation, additional surveys
Ongoing
International consultations
National permit applications
Detailed technical planning
Financial concept
Dialogue with authorities and public in the Baltic Sea region
Feasibility Study
Conceptual Design
Detailed Design
Laying Line 1
Commiss- ioning Line 1
Commiss- ioning Line 2
Laying Line 2
EIA & Approvals
2011
2012

7. In dialogue with all Baltic Sea countries
2. Current project status

8. Overview legal framework
National Law
5 States
Regional Law EU
Directives, Regulations,
TEN-E Decision
International Law
Between states UNCLOS, Espoo Convention, Helsinki Convention, (other) bilateral / multilateral treaties

9. 5 national applications submitted – Permits to construct and operate the pipeline required
Nord Stream is subject to national legislation in each of the countries through which the pipeline passes: Russia, Finland, Sweden, Denmark and Germany
Submission of national application documents well underway
Germany: submission mid-December 2008
Denmark: submission March 2009 (concurrently with Espoo Report)
Sweden: additional application documents submitted in October 2008; feedback received from 12 authorities after administrative referral to be answered
Finland: submission March 2009 (concurrently with Espoo Report)
Russia: submission end of 2008

10. International consultations – Nine states participating in largest Espoo process ever

11. Importance for Europe
3. Attractive business opportunities

12. European Union confirms high importance
The "natural gas pipeline via the offshore route from Russia to the EU" is specifically nominated as a priority project under the Trans-European Network Energy Guidelines (‘TEN-E’)
In 2000, the North European Gas Pipeline was included into the ‘TEN-E’ Guidelines - as a ‘Project of Common Interest’ (i.e. third level); 2003 status confirmed
In 2006, Nord Stream was designated as a ‘Project of European Interest’, recognising its status as one of the most important projects to meet Europe’s energy infrastructure needs
This means that Nord Stream…
Is in line with the EU’s overall energy policy objectives: sustainability, competitiveness and security of supply
Is supported by EU member states
Source: Decision 1364/2006/CE of the European Parliament and the Council of the European Communities, September 6, 2006

13. Important contracts signed
Conclusion of major supply contracts important steps towards efficient and timely project implementation
Supply agreements concluded for the first pipeline: over one million tons of pipes ordered
EUROPIPE (Germany) 75% – order value 1.2 bn EUR
OMK (Russia) 25% – order value 0.4 billion EUR
Further tender will be issued for second pipeline
Contract for logistics (concrete coating, pipe storage, transport) signed with EUPEC (France) – order value 650 million EUR
Contract signed with SAIPEM (Italy) for pipe-laying – order value over 1 billion EUR

14. European dimension reflected in involved companies
Nord Stream and Shareholder
Nord Stream AG
OAO Gazprom
N.V. Nederlandse Gasunie
BASF/Wintershall Holding AG
E.ON Ruhrgas AG
Gas Purchasers
Gazprom Marketing and Trading Ltd, UK
E.ON Ruhrgas AG
DONG Energy A/S
Gaz de France S. A.
WINGAS GmbH & Co. KG 1 2 3 4 5 1 2 3 4 5
Sweden
Finland
Norway 8 16 7 14
Contractors
Marin Mätteknik AB – Seabed survey
Port of Slite – Marshalling and stock yard
Port of Karlskrona – Marshalling and stock yard
Rambøll Oil & Gas – EIA and permit applications
Saipem S.p.A. – Pipe laying
EUPEC GmbH – Concrete coating
Port of Hanko – Marshalling and stock yard
Port of Kotka – Coating yard
PeterGaz – Seabed survey
ZAO OMK – Pipe production
Mukran – Marshalling and coating yard
EUROPIPE GmbH – Pipe production
Snamprogetti S.p.A. – Engineering/design
DoF ASA – Seabed survey
PetrolValves S.R.L. – Supply of valves
DNV – Quality control, certification
ERM – EIA
IfAÖ – Environmental studies 1 2 1
Denmark 2 2 9 10 3 4 3 3
Russia
Netherlands 18 11 4 1 5 3
5 2
4 5
Germany 6 UK 17 12 7 6 8 4 9 10
France 1
Switzerland 11 5 13 12
Italy 13 15 14 15 16 17 18 14

15. One of the biggest private investment in European infrastructure
4. Nord Stream‘s financial concept

16. A reliable project in financial world
Project expenditure 7.4 billion Euro
30% from Shareholders
70% from Banks
The crisis in the financial markets further intensified and resulted in
Substantially reduced liquidity  more difficult to get loans
Very restrictive lending  banks very cautions
Lenders demand higher margins
Lower interest rates
However, Nord Stream still seen as attractive project for banks due to
Strong Shareholders
Low market risk (energy)
Infrastructure (long term / stable returns)
Solid contract structure

17. Nord Stream – being realised on target
In comparison to Nord Stream, no other pipeline project such as, for example, South Stream, Nabucco or Galsi...
…has the same capacity
…will be able to deliver gas already in 2011
…has conducted such a comprehensive environmental survey
…has major commercial commercial contracts in place
Nord Stream – an essential contribution to Europes’ energy security

18. Contacts
Nord Stream AG
Grafenauweg 2
6304 Zug / Switzerland
Phone: +41 (0)
Vugar Veysalov
Permitting Manager 18 18