Pipeliners

22 January 2008 - Upstream OnLine - The Nord Stream consortium, which is planning to buils a subsea gas pipeline from Russia to Western Europe, has called on the European Union executive for help so it can meet its construction schedule. "If you think it is a done deal you are wrong," Reuters quoted Wintershall boss Reinier Zwitserloot as telling reporters in Berlin. "If we want to see gas flow through the pipeline in first half (of) 2011, all the necessary approvals must be obtained by mid-2009, but the EU Commission must help ensure that the project is not blocked by individual countries." Nord Stream is majority-owned by Russian gas export monopoly Gazprom, with Wintershall's parent BASF and fellow German player E.ON owning 20% each. The Netherlands' Gasunie has the remaining 9% stake. The operators, who aim to build the 1200 kilometre pipeline under the Baltic Sea, have recently said they will revise up the project's costs as the price of materials spirals higher. Zwitserloot said his frustration stemmed from numerous delays by individual EU countries that should not be tolerated, given a fast-rising gas shortfall in the 27-nation bloc. Among these, Estonia had blocked subsea exploration and Sweden had various departments considering approval of different aspects of the project, he said. He also said that another pipeline project, Nabucco, which is aimed at bringing Caspian area gas to central Europe, was given more prominence at EU level although it would offer less gas to help Europe overcome its supply gap. "Nord Stream can bring eventually 55 billion cubic metres of gas per year while Nabucco can only bring 8 Bcm, or 30 Bcm if Iranian gas can be sourced," he said. The EU stood to be faced with an annual supply loss of 100 Bcm by 2020 compared with today's balance, he said. Zwitserloot appealed to competition commissioner Neelie Kroes and energy commissioner Andris Piebalgs to act. Nabucco has a full time co-ordinator in Brussels, he complained.