Bloomberg reported that OAO Gazprom's Nord Stream pipeline delayed the first delivery of natural gas to Germany as countries along the project's route made additional environmental demands.

Mr Paul Corcoran project's financial director in an interview in Moscow recently said that the first gas will be delivered in the fourth quarter of 2011, later than previously foreseen. He said that “First gas in 2011 is absolutely our view.''

He said that the project's schedule had to be changed after Finland & Denmark requested adjustments to Nord Stream's tentative pipeline route earlier this year.”

He added that Nord Stream expects to fix a final route by September and submit an environmental impact assessment by the end of 2008. Nord Stream originally planned to publish a final assessment in April 2008.

Mr Corcoran said that “Once permits are received from the 5 countries touching the pipeline's route namely Russia, Finland, Sweden, Denmark & Germany by the end of 2009, pipe laying can begin the following year. Two deep water rigs have already been contracted to speed up the process and meet the deadline for first deliveries in 2011.”

He said that “Chances are extremely high that costs will be kept within the revised budget, since most of the contracts have already been signed. A steel contract for the project's second line to be completed in 2012 is expected in the second half of 2009. Fluctuations in the steel price have already been accounted for in the budget.” He added that shareholders will provide 30% of the project's costs. That amount will reach 1.3 billion euros by the 2008.

Gazprom owns 51% of Nord Stream, with Wintershall Holding AG &E.ON Ruhrgas AG each holding 20% and Nederlandse Gasunie NV 9%. The other 70% may come from as many 30 banks, including export credit agencies of Italy & Germany, and possibly Russia's Vneshecnombank. Dresdner Kleinwort Group Limited., Societe Generale & ABN Amro Holding NV are advising.