A delay in the Baltic Pipe gas project will cost approximately DKK 600 million, according to a press release from Energinet.
The announcement comes after the Environmental and Food Complaints Board revoked the Danish Environmental Protection Agency's two-year-old environmental permit for the gas project on May 31. This means that work can now only be carried out on parts of the 210-kilometer stretch across Denmark.
- Excavation work on the entire West Funen stretch and in Southeast Jutland between Little Belt and Egtved has stopped and will not start this year. Work is not expected to resume on the two stretches until next year, and it is very expensive to postpone and extend such a large construction project for many months, says Torben Brabo, CEO of Energinet.
The construction work was in full swing when the Environmental and Food Complaints Board revoked the environmental permit. The appeals board revoked the approval because it had not been investigated well enough how dormice, birch mice and bats would be protected during the work.
- We believe that we have acted in good faith, because the requirements for what an environmental impact report must contain were tightened after we received the environmental permit. And it has very, very major social consequences that the work must be postponed on sections, says Torben Brabo.
Energinet writes that the extra 600 million DKK that the project will cost is the best estimate with current knowledge.
There are still many matters regarding contracts, schedules and other things that need to be clarified. Therefore, the amount is associated with great uncertainty.
Baltic Pipe was approved in 2018, among other things because the project is expected to create a profit of two billion. kr.
In the press release, Energinet writes that it does not know how the additional costs will be covered.
Ritzau
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