EurActiv Logo
EU news & policy debates
- across languages -
Click here for EU news »
EurActiv.com Network

BROWSE ALL SECTIONS

Oettinger to attend Nord Stream kick-off event in Russia

Printer-friendly version
Send by email
Published 08 April 2010, updated 09 April 2010

Energy Commissioner Günther Oettinger arrived in Russia yesterday (7 April) for his first official visit outside the EU. During his stay, Oettinger will attend celebrations marking the launch of construction work on the Nord Stream gas pipeline.

"The cooperation with the Russian government is one of my priorities,” Oettinger stated before his departure.

“This is why Russia is the first country outside the European Union I visit in my capacity as EU Commissioner for Energy. Russia is a strategic partner for Europe and we hope to improve further our energy relations based on confidence and mutual trust,” he said.

In Russia, the German commissioner responsible for energy will meet deputy prime minister Igor Sechin, Energy minister Sergey Shmatko and Gazprom CEO Aleksey Miller.

On 9 April, he will attend celebrations marking the launch of construction works for the Nord Stream gas pipeline in Portovaya bay (Vyborg). Russian President Dmitry Medvedev is expected to take part, the Russian press writes.

The EU's demand for oil and gas is estimated to increase further in the future. It is for this reason, and for energy security reasons, that the EU welcomes new pipeline projects such as Nord Stream. The pipeline is a 'Project of European Interest', which is part of the Trans-European Networks for Energy (TEN-E), says a paper circulated by the Commission services.

First pipes installed

On Tuesday evening, project leader Gazprom announced that the first pipes had been laid. Pipe-laying is expected to take place at a pace of up to 3km a day.

"The construction of Nord Stream is an important milestone for the improvement of the security of supply for the whole EU. The attendance of Energy Commissioner Oettinger at the start of construction highlights the genuine European character of the project," Sebastian Saas, head of the Nord Stream EU representation, told EurActiv.

Asked if the project appeared less strategic following recent elections in Ukraine and a better climate between Moscow and Kiev, Saas insisted that the project was designed to meet increased demand for gas, not bypass any particular country.

"Nord Stream is around for the long term, fifty years at least. Long-term indicators and the International Energy Agency show that there is a need for additional import pipelines, such as Nord Stream," he said.

Asked if underwater construction would result in higher prices for European consumers, Saas insisted that this was not going to be the case.

"The construction of an off-shore pipeline is indeed more expensive. But the maintenance is relatively cheaper. Over fifty years the all-over costs are significantly lower than compared to another alternative," he said.

Next steps: 
  • 2011: First line of Nord Stream to be completed, with a transmission capacity of around 27.5 billion cubic metres a year.
  • 2012: Second line to be completed, doubling annual capacity to around 55 billion cubic metres.
A ship carries pipes for Nord Stream
Background: 

The Nord Stream gas pipeline aims to bring Siberian gas directly to Germany under the Baltic Sea, bypassing Russia's 'problematic' neighbours, including Ukraine.

The pipeline was awarded its final building permit on 12 February (EurActiv 12/02/10). It was announced that construction would begin in April, a deadline which appears to have been met.

Nord Stream is designed to transport up to 55 billion cubic metres of gas per year, enough to supply more than 25 million households. 

Nord Steam is a joint project by four major companies: Gazprom, BASF/Wintershall Holding AG, E.ON Ruhrgas AG and N.V. Nederlandse Gasunie. Gazprom leads the consortium with a 51% stake. 

The pan-European nature of the pipeline is underscored by its status as a project under the EU's Trans-European Networks energy guidelines. This status was confirmed in 2006.

The total budget of Nord Steam is 7.4 billion euros, which makes it one of the largest privately-financed infrastructure projects ever attempted. 

On 1 March, in the presence of French President Nicolas Sarkozy and his Russian counterpart Dmitry Medvedev, GDF Suez and Gazprom signed an agreement in Paris, formalising the entry of the French utility to the Nord Stream pipeline project (EurActiv 02/03/10).

The Nord Stream project is seen as controversial in several countries, including Sweden, Poland and the Baltic states (EurActiv 11/01/10).

More on this topic

More in this section

Advertising

Sponsors

Videos

Energy Supply News

Euractiv Sidebar Video Player for use in section aware blocks.

Energy Efficiency Promoted

Euractiv Sidebar Video Player for use in section aware blocks.

Advertising

Advertising