Arthur D. Little analyzes economic benefits and job market impact of Nord Stream 2

Major infrastructure project has total economic benefit to EU of
€5.15 billion

LONDON–(BUSINESS WIRE)–A recent report from Arthur D. Little (ADL) – “The economic impact to
Europe of the Nord Stream 2 Project” – analyzes the economic effects
(job creation and GDP) of the ongoing project to build two new gas
pipelines from Russia to Germany. The report analyzes the current status
of project investment and concludes that the total economic benefit to
the European Union (EU) represents €5.15 billion for building the
pipelines. Furthermore, the investment until the end of July 2017
creates 31,000 full-time job equivalents in the EU over five years,
adding €2.25 billion in GDP in various industrial sectors.

Nord Stream 2 is a major natural gas infrastructure project that aims to
build a pipeline system with 55 bcm per year of transport capacity. 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 objective of the ADL study, commissioned by Nord Stream 2, is to
understand 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. The
study considers all committed investments as of the end of July 2017,
standing at 4.4 out of the project’s total capital expenditure (CAPEX)
of €8 billion.

The most pronounced effects are seen in countries where major
project-related construction activities 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.

Michael Kruse, Partner in ADL’s Energy & Utilities Practice,
said: “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.”

The report can be downloaded here: www.adl.com/NordStream2impact

Contacts

ADL
Cate Bonthuys
+447746546773
[email protected]