Sweden and Finland agreed on Thursday to allow the Russia-led Nord Stream gas pipeline to Germany run through Swedish and Finnish economic zones in the Baltic Sea, their governments said.
"The government authorises Nord Stream to build a pipeline in international waters inside the Swedish economic zone," Swedish environment minister Andreas Carlgren told reporters.
The Finnish government said in a statement it "granted consent for Nord Stream AG's plan to construct an offshore natural gas pipeline system that would traverse the Baltic Sea."
The $7.4 billion Nord Stream project, which is led by Russian state-run energy giant OAO Gazprom (GAZP.RS) in partnership with Germany's E.On Ruhrgas AG and BASF-Wintershall, will run under the Baltic Sea to bring gas from Russia to the European Union.
The pipeline will link the Russian city of Vyborg and Greifswald in Germany over a distance of 1,220 kilometres, going under the Baltic Sea and passing through Russian, Finnish, Swedish, Danish and German waters.
Denmark agreed to Nord Stream Oct. 20, leaving Russia and Germany the only countries that still need to officially approve the project.
Poland and the Baltic states are critical of Nord Stream, claiming the project's sole aim is to circumvent them.
Nord Stream AG wants to start installing the pipeline, formed of two parallel gas tubes, in 2010. Gas delivery to Europe will start in the autumn of 2011, after the first tube is installed, and the entire project should be completed by 2012.
The pipeline has the capacity to bring 55 billion cubic meters of Russian natural gas to Europe per year, which represents 11% of expected gas consumption in Europe for 2011.
The European Union is looking to diversify its gas sources and supply routes to no longer fall pray to disputes between Russia, which accounts for 40% of its imports, and Ukraine, through which 80% of its Russian gas purchases transit.