Importance
The North – European gas pipeline (NEG) creates principally new route for Russian gas exports to Europe. Project implementation will allow diversifying gas export flows, to directly connect gas network of Russia with the countries of the Baltic region and with the European gas grid. NEG is featured with avoidance of transit states along its route. It decreases sovereign risks and costs of gas transmission, and at the same time prove to enhance reliability of gas export supplies.
The gas pipeline will run under the waters of the Baltic Sea from Vyborg to the coast of Germany (in the vicinity to the town of Greiswald). Construction of marine gas pipeline sections to deliver gas to consumers in Finland, Sweden, the Great Britain and other countries is planned in the project.
The gas pipeline construction will help promote gas export to Scandinavian countries as well as provide reliable gas supply to consumers of Western Europe, North–West region of Russia and Kaliningrad area, on the background of blue fuel growing demand in the areas.
History
Comprehensive maritime research in the Baltic Sea during the period from 1997 to 1999 was fulfilled with participation of leading world engineering companies and Russian institutes.
Project feasibility study confirmed technical viability and efficiency of the NEG pipeline construction.
In December 2002, due to the European Union’s interest in creation of the common European energy market, where Russia plays leading role, in organization of new routes to transport natural gas to Western Europe, the NEG project was awarded with the “TEN” status (TransEuropean network) following the decision by the European Commission.
Conferring the “TEN” status to the project makes it easy to solve questions of its realization on the territories of the European Union member-countries, and attract EC financial help.
Technical features
The starting point for a sea section of the North – European gas pipeline will be the coastal compressor station, which will be built in Portovaya bay (near the town of Vyborg in Leningrad region).
Gas pipeline offshore section from Vyborg to Greifswald will be 1189 km long, with 1067 mm in diameter, and a 200 atm working pressure.
In different calculations gas pipeline annual capacity is from 19 to 30 bcm. The project will positively effect market developments.
To connect the North-European gas pipeline with the United gas transmission system (UGTS) of Russia construction of new Gryazovets–Vyborg gas pipeline via the Vologodskaya and Leningradskaya regions is planned. Launching this gas pipeline in operation will help meeting gas demand in St. Petersburg and the Leningradskyi region. At the first phase, the North-European gas pipeline will be receiving gas from gas fields in the Nadym-Pur-Taz region, and in the Yamal, Ob–Taz bays and Shtokmanovskoye field at a later stage.
It is planned to start the North European gas pipeline operation in 2007, in 2009 at the design capacity.
Current state of affairs
On 11 November 2002, a working meeting between Gazprom’s Management Committee Chairman Alexei Miller and EU Commission on Energy and Transport Director General F Lamurye was held in Brussels. At the meeting it was declared that EU Commission on Energy and Transport named the NEG project a priority one and the project would be presented to the European Bank of Reconstruction and Development.
On 18 November 2002, Gazprom’s Management Committee resolved to start practical realization of the NEG project. The NEG project business-plan and preliminary time-schedule were adopted.
Later in November 2002, Gazprom’s Management Committee Chairman Alexey Miller held meetings on realization of NEG project in Russia and abroad.
On 21 November 2002, a meeting of Gazprom’s management with the governor of the Leningradsky region Valery Serdyukov took place. The parties agreed to establish joint working group to solve, in a business manner, questions related to engineering survey and tailoring the project with the Leningradsky region energy needs. Authorized representatives of the administration of the Leningradsky region entered the working group as well as OOO Lentransgaz and OAO Giprospetsgaz.
On 25November 2002, meetings with the Prime Minister of Finland Paavo Lipponen and the Management Committee Chairman of the company Fortum Matty Wuoria were held in Helsinki. At these meetings the Parties discussed prospects of the Russia-Finland cooperation in the gas industry, the matters on the NEG project in particular.
On 26 November 2002, in Hague there were meetings with the Prime Minister of the Netherlands Yan Peter Balkenende as well as with the President of the national Gas Company Gasunie George Verberg. In the course of these meetings the parties discussed prospects and problems of mutual involvement in the gas industry developments as well as matters related to NEG project realization.
On 28 and 29 November 2002, Gazprom’s Management Committee Chairman Alexey Miller at the invitation of the Great Britain government visited London. He met with the Minister of Energy of Great Britain, Parliament Member Braien Wilson as well as with the British Petroleum, Royal Dutch/Shell, Centrica and Goldman Sax management. Over the meetings, questions of mutual interest were discussed, including prospects of NEG project.
Due to significant international response and the European Union support, major international energy companies such as Ruhrgas, Wintershall, Gasunie, Shell, TotalFinaElf and others showed great interest in the NEG project.
Works on the NEG project will be proceeding in: