Engie to book billion-euro impairment on Nord Stream 2

The French utility means to record loss on its investment in the gas pipeline, halted by Russia’s invasion of Ukraine.
Photo: ERIC PIERMONT/AFP / AFP
Photo: ERIC PIERMONT/AFP / AFP
BY MATHIAS JULIUS FALKENGAARD, TRANSLATED BY DANIEL FRANK CHRISTENSEN

Almost a billion euros – EUR 987m to be precise – now appears lost for Engie in the wake of Germany having blocked approval of Russian-German natural gas pipeline Nord Stream 2, report several international media, including Reuters, after the French power company held a shareholder meeting Thursday evening.

Berlin halted approval of Nord Stream 2 in late February after Russia invaded Ukraine.

State-owned Russian gas company Gazprom owns most of the Nord Stream 2, while other big European players – which beyond Engie include Uniper, Shell, OMV and Wintershall Dea – have invested heavily in the project and have since been obliged to book massive write-downs.

The idea behind the pipeline, which is in fact complete, was to facilitate transmission of 55 billion cubic meters of natural gas annually. The consolidated bill for the development comes to USD 11bn.

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