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Russia-led Nord Stream 2 seeks new route to avoid Danish waters

Reuters  |  COPENHAGEN 

(Reuters) - The Russia-led 2 consortium said on Friday it has applied to for an alternative route through the that would avoid the Nordic state's territorial waters.

is facing a dilemma on whether the project can be built near its Baltic coast and its parliament may pass legislation allowing it to veto the 2 pipeline going through Danish territorial waters on security grounds.

is keen to press ahead with the 2 pipeline since it has the potential to double its under the to Germany, bypassing traditional routes through with which it has poor relations.

The has come under fierce lobbying by Russia, EU allies and the over the 9.5 billion euro ($10.9 billion) Nord Stream 2 project led by and financed by five Western firms. The opposes the project while some eastern European countries fear it will make the EU a hostage to Russian gas

But does not want to act alone and has postponed a decision on the new legislation.

Its search for a united EU stance on the proposed pipeline is also deadlocked by divisions among member states over whether to do more business with despite its military incursions in and

U.S. last month accused of being a "captive" of due to its and said it was wrong to support the Baltic

A Danish veto, under new legislation allowing it to do so on security grounds, would force Russia, which supplies about one third of Europe's gas needs, to find a new route for the pipeline.

"The recommendation of (Denmark's) ministry of foreign affairs has been pending since January 2018. Therefore, Nord Stream 2 decided to explore alternative routes outside of Danish territorial waters," the Nord Stream 2 consortium said in a statement.

PROGRESS AS PLANNED

The new application process will take about 12 months to complete, a for the said.

A Nord Stream 2 said the project is progressing as planned in other countries and that it expects "no significant delay" to the pipeline.

The Danish part of the pipeline will be installed in the second half of 2019, he said. The alternative route would be 175 kilometres long and pass north-west of the island of

The consortium said it was not withdrawing an application filed in April last year to build a parallel pipeline to the existing that is already shipping Russian to

Sweden, and all earlier this year issued permits for the pipeline to run through their exclusive economic zone, which is regulated by U.N. law.

($1 = 0.8736 euros)

(Reporting by Jacob Gronholt-Pedersen; additional reporting by in Editing by and Emelia Sithole-Matarise)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 10 2018. 17:43 IST
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