First Nord Stream branch to be fully laid by July - Putin
MOSCOW. April 20 (Interfax) - The laying of the first line of the Nord Stream gas pipeline will be completed this July and gas will be following through this branch in October, Russian Prime Minister Vladimir Putin said while presenting a government report to the State Duma on Wednesday.
"Remember how many discussions, doubts and even international controversies have surrounded our other infrastructure projects. The most significant and popular was North Stream. A year ago, while presenting to the State Duma, I informed you that the set up of the undersea sections of Nord Stream had commenced. I can say today that it will be completed in July 2011 and be provided with service gas. By October and November Russian gas will already be going to Europe through a new route," Putin said.
"I am sure we will get results for the other directions. This means that Europe's energy wellbeing will be strengthened," Putin said.
He also said that the Nord Stream pipeline is part of realizing Russia's strategic goal to enter markets and bypass transit risks that emerged following the breakup of the Soviet Union.
"At one time, Peter the First opened up a window to Europe. What for? First of all, for carrying out business and trade. In terms of joining foreign markets, a small window has been setup for us. It has become difficult to go through transit countries," Putin said.
"It is very important for us to have direct access to markets for the sale of our traditional commodities. This is our strategic choice and we will proceed accordingly. We won't infringe on the interests of transit states," he said.
Putin added: "bearing in mind what is happening in Europe after the catastrophe at Fukushima-1, demand in the energy sector will only increase". He said that the "German government, for example, has decided to shut down nuclear electricity stations gradually and this is also happening in other European countries."
"Demand for energy resources will increase. Also, infrastructure projects will be in demand. We will develop them," Putin said.
Putin added that gas production in Russia increased almost 12% in 2010. He also noted that new gas fields are being developed such as the Bovanenkovskoye, Chayadinskoye and Zapolyarnoye fields. In addition, offshore and CIS projects are progressing.
Nord Stream is a 1,224 kilometer gas pipeline, which should run along the bottom of the Baltic Sea from the Russian coast near Vyborg to the Germany coast (Greifswald region). The pipeline's design capacity is 55 billion cubic meters a year (through two branches each able to pump 27.5 bcm a year). Russian gas giant Gazprom owns 51% in the project while Nord Stream, BASF/Wintershall and E.ON Ruhrgas each hold 15.5% stakes. Gasunie and GDF Suez each own 9%.
