MOSCOW, Jan. 22 (UPI) -- The consortium managing the Nord Stream gas pipeline awarded contracts Friday worth $1.4 billion to build the second section of the gas link to Germany.
Nord Stream AG commissioned Germany's Europipe, Russia's OMK and Japan's Sumitomo for the construction of the second section of a gas pipeline through the Baltic Sea to Germany.
"With $1.4 billion, the total volume of the contracts is below the price level of the first line and reflects the current market development where competition has increased and more capacity is available," said Henning Kothe, project director at Nord Stream.
Nord Stream will stretch 745 miles through the Gulf of Finland and the Baltic Sea to Germany. The project, along with South Stream, is part of an effort by Russia to diversify its European transit options.
The $11.1 billion Nord Stream pipeline has an estimated capacity of about 1.9 trillion cubic feet per year. Delivery of the pipeline sections for the second leg of Nord Stream is expected by May. Construction is slated for April.
Germany in December passed final legislation for construction of the pipeline in its territorial waters, pushing the project for Europe forward.
