The planned Nord Stream gas pipeline moved a step forward Thursday after a Finnish environment agency approved the project but told its backers to provide more information on potential environmental damage.
The 1,220-kilometer pipeline, which would deliver energy from Russia to Germany, needs the green light from Finland, Sweden and Denmark before building can begin as it will run close to their Baltic coastlines.
The Uusimaa regional environmental authority said Nord Stream AG, a partnership between Russian state-run energy giant OAO Gazprom (GAZP.RS) and Germany's E.On AG's (EOAN.XE) gas unit E.On Ruhrgas and BASF SE's (BAS.XE) Wintershall AG, must conduct "further investigations" into pollution damage, maritime safety and the impact on sealife nature among other things.
"We are committed to provide the further information that authorities have asked from us," Nord Stream spokesman Sebastian Sass told reporters.
This step is important as the Finnish government could not give the go-ahead to the project before the environmental agency had reported its findings.
A separate environmental planning authority must also review Nord Stream's plans before building can begin.
Once completed, Nord Stream will run under the Baltic Sea from the Russian port city of Vyborg to Greifswald, in northern Germany.
Prime Minister Matti Vanhanen said last month that the government would decide possibly in late September if it will give Nord Stream permission to use Finland's economic zone in the Baltic Sea to build the pipeline.
Russia and Germany have expressed strong support for the project estimated to cost some EUR7.4 billion and Nord Stream hopes to have approval from Finland, Sweden and Denmark by the end of this year.
If that happens, building could start on the pipeline in 2010 and some deliveries could be made at the end of 2010.