According to a new report from Arthur D. Little, The economic impact to Europe of the Nord Stream 2 Project, the Nord Stream 2 Pipeline will generate €5.15 billion for the European Union. Furthermore, investment in the project through July 2017 will create 31,000 full-time job equivalents in the EU over the next five years, increasing the region’s GDP by €2.25 billion, across a variety of industrial sectors.
“At a time when the oil and gas industry is experiencing cut-backs and lay-offs, this report transparently demonstrates the benefits of large energy infrastructure projects such as Nord Stream 2,” Michael Kruse, Partner in Arthur D. Little’s Energy & Utilities Practice, said.
The Nord Stream 2 Pipeline is a major natural gas infrastructure project designed to transport 55 bcm annually. It will safely and reliably export gas to the European market, where demand is stable but indigenous production is decreasing, creating an import gap.
The study, commissioned by Nord Stream 2 AG, was conducted to analyze the direct, indirect and induced effects of the project on the European economy, and on countries where actual investments in the pipeline have been or are being made. It estimates the effects related to the execution of the project, as well as those on supply chains and the wider economy. The analysis used an economic modeling tool (IMPLAN) based on underlying statistical databases for different economies and considered all committed investments as of July 2017, a total of €4.4 billion.
According to the study, the most pronounced economic effects are seen in countries where major project-related construction activities are taking place – Russia, Germany, Finland and Sweden; in countries traditionally associated with the offshore oil and gas industry that host the majority of service providers – the Netherlands, the United Kingdom, Norway and Italy; and at the headquarters of the project developer and other international service providers.