Nord Stream to analyze possible expansion of gas transport infrastructure from Russia to EU via the Baltic Sea

The shareholders of Nord Stream AG have charged the company with the analysis of the possible further expansion of the gas transport facilities for the delivery of natural gas from Russia to EU via the Baltic Sea.

Within the next 8 months Nord Stream will assess the possible foundation of one of two additional pipelines including such key aspects as technical solutions, variants of the route, environmental protection and financing.

The shareholders will use the results of the research to assess the capacities and the variants of the increase of the import of Russian natural gas to EU within the next few decades, the improvement of the reliability of gas deliveries under the existing contracts as well as making of further decisions.

The start of the new research demonstrates the efforts of the shareholders of Nord Stream to strengthen the long-term energy safety of EU by the means of diversification of gas transport routes and provision of reliable and competitive deliveries of natural gas.

The research will be based on the 40-year long experience of delivery of Russian gas to Europe and successful building of two lines of Nord Stream as well as total experience of the shareholders in realization of such projects and management of gas infrastructure.

The research will assess the potential building of additional gas transport facilities with at least 50-year lifetime.

The analysis of the additional gas transport infrastructure was caused by the following key factors:

First, further diversification of the routes guarantees reliable gas deliveries.

Second, the demand for gas import in Europe will keep growing in long-term prospect due to economic and ecological advantages of natural gas as well as reduction of EU domestic extraction.

However,Europe will not necessarily use the additional facilities of Nord Stream.

The boom at LNG market in 2011 resulted in considerable growth of the amount of LNG terminals in Europe.

The USA which at once stopped the import of Qatar LNG and replaced it with shale gas played their part in this as well.

Then, the uncertain position of Gazprom concerning the value of European gas and considerable reduction of consumption of Russian gas in Ukraine must be added.

At the same time, Total and Statoil insist on the transportation of LNG in the framework of Shtokman.

The commercial component probably plays its part in the actions of the shareholders of Nord Stream and Shtokman.

Nord Stream AG is an international consortium founded for designing, building and operation of the gas line via the Baltic Sea. Gazprom holds 51% of the shares; German BASF SE/Wintershall Holding GmbH and E.ON Ruhrgas AG hold 15.5% each. Dutch infrastructure company N.V. Nederlandse Gasunie and French energy company GDF SUEZ hold 9% each.

The first of the two parallel pipelines of Nord Stream was put into operation in November 2011. Each line is more than 1,220 km long and produces 27.5 billion cubic metres per year. The pipelay at the second line has already been completed, the start-up is being led. Once the second line is put into operation at the end of 2012, up to 55 billion cubic metres of gas per year will be transported via the gas line.

Source: http://rosinvest.com/novosti/927103

Translated by Alexandra Utyasheva