Pipeliners

09.01.2006 MosNews - Russia and Belarus have agreed to increase gas transit levels to Europe. During negotiations between Belarussian President Alexander Lukashenko and deputy head of Russia's gas giant Gazprom, Alexander Medvedev, the two countries agreed to set up a working group to discuss joint projects, which include underground gas storage facilities in Belarus and expanding its transit capacity for Russian gas supplies to Europe, ITAR-TASS news agency reported. The storage facilities area could be expanded by up to one billion cubic meters. Gazprom provides about half the gas consumed in the European Union and 80 percent of that amount is sent through pipelines that cross Ukraine. The announcement of the agreement came four days after Russia and Ukraine ended a bitter, months-long dispute over gas supply. While the price of Russian gas for Ukraine has increased, Belarus will receive Russian gas at the same price as in 2005. Russia and Belarus have outlined plans to unite into one state and already make use of common economic and finance standards. Gazprom also owns the Belarussian part of the pipeline from the Russian deposit at the Yamal peninsula to Europe that transports over 50 percent of Russian gas exports through Belarus. In 2005 the two countries resumed negotiations to establish a joint enterprise on the basis of Belarus' Beltransgaz to direct the Belarussian gas transport system.

Friday, December 30, 2005

IEA Against German-Russian Gas Pipeline

30.12.2005 [Neftegaz.ru]
IEA Against German-Russian Gas Pipeline 30.12.2005 12:57 The International Energy Agency (IEA) has taken Poland's side and reinforced its arguments against the construction of gas pipeline that will link Russia and Germany under the Baltic Sea, Mosnews.com reported. "We entirely understand Poland's position on this issue. From the Polish point of view it would be more favorable to remain a transit country. We dismiss the argument that thanks to the new gas line Poland's gas supplies will be more secure," said Faith Birol, chief economist at the IEA, quoted by the Polish News Bulletin. In addition, the Northern Pipeline will make Germany even more dependent on Russia in terms of gas supplies. "Gas covers nearly 25 percent of Germany's energy needs, which is too much by far as the country is becoming more dependent on energy imports," stressed Birol. He also pointed to the fact that Russia is currently satisfying 30 percent of the demand for gas in Germany. "This is worrying and puts Germany’s energy safety at risk," said Birol. MosNews has reported on several occasions about the North European Gas Pipeline that has been proposed by Russia's natural gas monopoly Gazprom. The pipeline will take gas to Germany across the Baltic from Vyborg, a port near St. Petersburg and the Finnish border. Spurs from the main pipeline could also feed gas networks in Finland, Sweden and Great Britain. The undersea portion of the pipeline is expected to cost $2 billion, and is intended to bypass transit countries such as Ukraine, Poland and Baltic states. Official construction of the 1,200 kilometer (744 miles) pipeline was begun on Dec. 9. The North European Gas Pipeline has already stirred a lot of controversy in transit countries, such as Poland and Ukraine, prompting concern that Russia's neighbors will eventually be cut off from Russia's gas supplies. MosNews has reported on previous occasions that Poland has called the pipeline plan a "conspiracy" against its interests, while the Baltic states offered their own pipeline project and cited environmental concerns trying to prevent Gazprom's project from starting.