The consortium of companies behind the beleaguered Nord Stream 2 gas pipeline, ever so close to end point Lubmin near Greifswald on the Baltic Sea with 160-km of pipeline left to lay, has been informed that the world's top ship insurers would no longer provide cover "for any activity involving or related to the Nord Stream 2 or Turkstream construction projects." As the PTJ has reported previously, the insurer's actions are related to the threat of extraterritorial sanctions from the United States.
Members of the insurance associations, including the Shipowners' Club and the London P&I Club, were “strongly urged to assess and mitigate the risks of entering into contracts on the Nord Stream 2 or TurkStream construction projects and exercise the fullest possible due diligence to avoid exposure to sanctions or enforcement actions”.
The International Group of P&I Clubs represents the world’s top 13 ship insurers and covers nearly 90% of the world’s ocean-going tonnage. The notice carried by its members said that all clubs had issued similarly worded circulars regarding Nord Stream 2 and TurkStream.
The $11 billion Nord Stream project, led by Gazprom with a 51 % share, was supposed to begin operations next year. Former German chancellor Gerhard Schroeder is chairman of Nord Stream’s shareholders committee. German energy companies E.ON and Wintershall Dea, Engie of France, and Dutch firm Gasunie are also key shareholders in the project.