1 September 2011

Fluxys G acquires a 19% stake in NEL natural gas pipeline from WINGAS

The Belgian gas pipeline operator Fluxys G purchased a 19% stake in the NEL pipeline from the German company WINGAS. Along this route, which is the western outlet of the ground section of the Nord Stream gas pipeline, natural gas will be transported from the Baltic coast to the west.

"Participation in the construction of NEL promotes a partnership with other network operators, integration and expansion into the North European gas market, as well as strengthening the position of our company to provide gas transportation services" said the Fluxys G president, Walter Peeraer. "The NEL pipeline was originally considered a European project and the participation of a Belgium company in the construction strengthens its European orientation", said WINGAS Chairman Gerhard König.

The NEL project involves, along with WINGAS (51%) and the Fluxys G Company (19%), the Netherlands transportation company Gasunie (20%) and German E.ON.Ruhrgas (10%). The planned investment amounts to one billion euro. The capacity of the NEL will be up to 20 billion cubic meters per year.

The 440 km long gas pipeline connects the Baltic coast with underground gas storage in Rehden (German region of Lower Saxony). Together with the OPAL pipeline, by which gas will be supplied to the Czech Republic, the NEL gas pipeline will link the Baltic gas main transport system with the European gas pipeline network. Work on laying the NEL pipeline began in the spring of 2011 and commissioning is planned for autumn 2012.

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