RUSSIAN GAS monopoly Gazprom plans to launch its North European pipeline in 2010, CEO Alexey Miller said, signalling a three-year postponement of the $5.7-billion project. “The North European pipeline will be launched in 2010 and, of course, completion of this project will allow us to increase supplies to Germany and other European Union countries,” a Gazprom statement quoted Miller as saying.
The company is in the midst of a merger with state oil firm Rosneft which, analysts warn, may distract the firm from operational projects worth billions of dollars, such as commercial development of the huge east Siberian gasfields. Gazprom had previously said the pipeline would be finished in 2007, reaching full capacity of 19-30billion cum/yr in 2009.
Gazprom is currently planning the 917-km segment in Russia, and developing the South Russian gas deposit, which will supply the pipeline. The pipeline, also known as the North TransGas pipeline, will connect the Baltic port of Vyborg to Greifswald in Germany via a 1,189km offshore section.
Germany, where Miller made his comments, already imports around a third of its gas from Russia, and the pipeline will allow the firm to boost exports to a number of European countrie. Gazprom is working on the pipeline project with Germany's Ruhrgas, which owns 6.5% of the gas giant. Royal Dutch/Shell, Total, Wintershall, BP, and Fortum have also shown interest in participating in the project.
Story courtesy Global Pipeline Monthly - www.gasandoil.com/gpm.
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