The NEGP Construction Project meeting held
Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman, held a meeting dedicated to implementation of the North-European Gas Pipeline (NEGP) Construction Project. Heads of Gazprom’s core business departments involved in the Project attended the meeting.
As it was pointed out at the end of the meeting, the Draft business plan on the NEGP construction was thoroughly elaborated and could be taken as a basis in providing a detailed feasibility study. The participants decided to invite Linklaters as a legal advisor and Dresdner Bank and ABN Amro as financial advisors as well as to conduct a tender to select an engineering advisor for the Project.
The participants determined Gazprom’s priorities in selecting foreign partners to be involved in the Project. Heads of financial, production and export departments were commissioned to conduct (within a 3-month period) respective negotiations and forward concrete proposals as far as the Project participants’ scope.
Gazprom plans to complete all preparations and adopt an investment decision on the NEGP in the 4th quarter of 2004.
“The Project marketing is adequate and sound! European countries need more gas and Gazprom can ensure soaring demand,” – Alexey Miller was quoted as saying at the end of the meeting.
On November 18, 2002, Gazprom’s Management Committee adopted a resolution to start implemnting the NEGP Construction Project. The NEGP will run across the Baltic Sea bed from the town of Vyborg (Russian-Finnish border) to the German coast and then to Great Britain. The total length of the gas pipeline underwater section is 1,189 km.
The Project envisages construction of offshore gas branches to deliver natural gas to Finland, Sweden and other countries. The NEGP will contribute to the expansion of the Scandinavian gas supply system as well as will enhance security of gas supply to Western Europe, Russia’s northwestern areas and the Kaliningrad Region.
In December 2000, the European Commission assigned the TEN (Trans European Network) status to the NEGP Project.
The world-largest energy companies (including Ruhrgas, Wintershall, Gazunie, Shell, TotalFinaElf, British Petroleum, Centrica and others) showed interest for implementing the NEGP Project.
In June 2003, Russia and Great Britain, in the presence of Vladimir Putin, Russia’s President, and Tony Blair, Great Britain’s Prime Minister, signed Memorandum of Cooperation on the North-European Gas Pipeline.
On January 16, 2004, the RF Government issued Order N64-r, in which the Government approved the RF Energy Ministry and Gazprom’s proposal on engineering the NEGP.
Information Directorate, OAO Gazprom