Sweden and Finland approve gas pipeline under Baltic Sea (Roundup)

Nov 5, 2009, 12:44 GMT

Stockholm/Helsinki - Sweden and Finland on Thursday each granted permits to the Nord Stream international consortium to bring natural gas from Russia to Germany via a pipeline under the Baltic Sea.

Swedish Environment Minister Andreas Carlgren announced the decision after a cabinet meeting.

In total 480 kilometres of the underwater section of the 1,200- kilometre-long pipeline will pass through the Swedish economic zone, east of the Swedish island of Gotland, Carlgren said.

Factors considered in the decision included effects on bird breeding areas, fisheries, the location of chemical munitions dumps, and shipping, the minister said, adding safeguards were in place.

The two parallel pipelines are envisaged to run from Vyborg in Russia to Greifswald, Germany.

As a condition, the Finnish government said the project had to pay 'particular attention to the Baltic Sea's sensitivity and vulnerability.'

About 375 kilometres of the pipeline are in Finland's economic zone, the government said.

'These two permits are further significant milestones for our project and Europe's security of supply,' Nord Stream managing director Matthias Warnig said in a statement.

Later this month, a company hired by the consortium planned to begin clearing 27 mines detected along the route in the Finnish zone, Finnish news agency STT reported.

The Swedish decision was taken after 'a tough environmental assessment,' Carlgren said at a news conference, citing a 23-month review of the application and consultations with the Nord Stream consortium.

'No serious Swedish government would violate international treaties by saying no to the gas pipleine,' Carlgren said.

Sweden took into account its obligations under the United Nations Convention on the Law of the Sea that allows other states to lay down pipelines on international waters.

No Swedish authorities had recommended stopping the project, and would closely monitor it, he said.

The Swedish opposition Left and Green parties were critical of the the approval as was the Swedish Society for Nature Conservation.

The Swedish and Finnish announcements had not been coordinated, Carlgren said, adding that the approval was not linked to an upcoming EU-Russia summit. Sweden, current holder of the rotating presidency of the European Union, is to host the summit.

Denmark in October gave similar approval. Germany and Russia have yet to announce their decisions.

Nord Stream said it planned to start construction in the first quarter of 2010, with the first pipeline operational in 2011 and the second in 2012.

Partners in the consortium include Russian gas monopoly Gazprom, Germany's E.ON and BASF/Wintershall and Dutch company Gasunie.