Two New Studies Highlight Economic Benefits of Nord Stream 2
- Total economic impact from investment will be over €5.15 billion
- Some 31,000 Full-Time-Equivalent jobs already created by the project, adding €2.25 billion in GDP
- Pipeline will enhance competition and reduce gas prices across Europe – saving EU economies €8 billion per year
Oct. 20, 2017 | Two recently published studies have highlighted how the Nord Stream 2 Pipeline will make a positive economic impact in Europe.
A labour market and economic impact study by management consultancy Arthur D. Little has shown that the total economic benefit created by the EU pipeline will be over €5.15 billion. What’s more, as of the end of July 2017, investments in Nord Stream 2 have already created 31,000 full-time-equivalent jobs, adding €2.25 billion in GDP. Published on October 4, 2017, “Economic Impact on Europe of the Nord Stream 2 Project” outlines the direct, indirect and induced effects of the major infrastructure project to build a 1,200-kilometre pipeline system to deliver Russian gas to the European market. These jobs were mainly in Russia, Germany, Finland and Sweden, where most of Nord Stream 2‘s construction activities are. Other countries include the Netherlands, the United Kingdom, Norway and Italy, which are home to offshore oil and gas industry contractors, in addition to international contractors.
A separate market modelling study, published by non-profit research institute ewi Energy Research & Scenarios on September 20, 2017, has concluded that the new pipeline would decrease gas prices in the EU. According to “Impacts of Nord Stream 2 on the EU Natural Gas Market,” by bringing additional gas to Europe, Nord Stream 2 would enhance competition and reduce the need to import liquid natural gas, or LNG. This would subsequently lower LNG prices, resulting in decreased gas prices across the EU, the study found. European consumers could save €8 billion every year if the pipeline is operational in 2020, and no European state would be left out of the pipeline’s benefits, which would mean up to 13 per cent lower gas prices, the study found.