Nord Stream looks to Finland and Estonia for pipeline branches
Nord Stream AG consortium has made the first steps towards the laying of extra gas pipeline branches from Russia to Europe. After filing a petition on investigations in the waters of Finland the company has addressed a similar application to the government of Estonia. But if Finland is loyal to the project, it will be quite difficult to get permission from Estonia. In 2007 the country refused Gazprom a similar request. But since that time Estonia has got a discount and Gazprom thinks it has a chance of a favourable decision.
The operator of Nord Stream-Nord Stream AG gas pipeline construction has sent a petition to the Ministry of Foreign Affairs of Estonia on the carrying out of an assessment of the possibility of the laying the 3d and 4th pipeline branches in an economic zone of the country before December 31, 2014. As a spokesman for Nord Stream in the Baltic countries R.Baumanis said to BNS, the company wants to get permission for carrying out an investigation of a 4 km corridor in the Baltic Sea.
The gas pipeline Nord Stream consists of 2 branches and goes from Russia to Europe under the Baltic Sea. The throughput capacity of each branch is 27.5 billion cubic metres of gas a year. The first branch of Nord Stream was launched in late 2011, the second one is planned to be launched before the end of 2012. Gazprom owns 51% in Nord Stream AG, German companies BASF SE/Wintershall Holding GmbH and E.ON Ruhrgas AG own 15.5% each. The Dutch N.V.Nederlandse Gasunie and French GDF Suez own 9% each. Nord Stream considers 2 routes of gas pipeline expansion in the Gulf of Finland, which goes via the economic zones of Estonia and Finland.
On the grounds of the research data in the two countries, the shareholders of Nord Stream are about to discuss the question of the expansion of the gas pipeline. As the head of Nord Stream in Finland, S.Bonnel said, it is planned in 4-6 months. According to him, in the case of positive decision, it will take about 1-2 years.
Last week the premier of the country, A.Ansip said that the situation is similar to the one in 2007, when Estonia refused Gazprom to carry out an investigation. And he sees no reason why the government should change its decision. He has also added that Nord Stream will be able to make a petition when the enterprise has carried out the investigations required and the shareholders will make a decision on the creation of thegas pipeline. Only after that it will be possible to make a petition,” the Prime Minister said.
But analysts say that the situation, compared with 2007, has changed. As V.Kryukov from IFD-Capital says, Estonia has got a discount on its gas. The new gas pipeline branches are necessary for the monopoly to lessen its dependence on the Ukraine as Russian gas transiter to Europe.
http://www.kommersant.ru/doc/2009242
translated by Iraida Idiyatova
