Gazprom launches construction of onshore section of North European Gas Pipeline
The first joint of the Russian onshore section of the North European Gas Pipeline has been welded today in the town of Babayevo (Vologda region).
Attending the event were Mikhail Fradkov, Chairman of the Government of the Russian Federation, Michael Glos, Economy Minister of Germany, Alexey Miller, Chairman of Gazprom’s Management Committee, Jurgen Hambrecht, Chairman of the Board of Executive Directors of BASF AG and Wulf Bernotat, Chairman of the Board of Management & CEO of E.ON AG.
NEGP’s offshore section will be engineered, constructed and operated by North European Gas Pipeline Company incorporated on 30 November 2005 in the canton of Zug (Switzerland) by Gazprom (51%), BASF AG (24.5%) and E.ON AG (24.5%).
“Today we’ve started establishing a cardinally new route for natural gas transmission. Projected over a long term and aimed at meeting the united Europe’s soaring needs in Russian gas, the North European Gas Pipeline will substantially enhance the reliability and flexibility of gas deliveries from Russia. Gazprom’s long-lasting experience of operations in the gas business as well as our alliance with the prominent German companies BASF and E.ON are the keystones for our success, with the foundation of a special purpose Gazprom, BASF and E.ON joint venture being undoubtedly a landmark event in this regard”, – maintained Alexey Miller.
“For so far 15 years BASF and Gazprom have been successfully working as a team in the gas trading sector. In 2003 we launched joint business in the geological exploration and production sectors. By now intensifying our partnership ties, we’re making another contribution into prospective natural gas supply of Europe along the entire value chain, from a Siberian drilling well to a European end-user,” said Jurgen Hambrecht.
“Welding the first joint of a gas pipeline from Russia to Germany is a symbolically meaningful event. Our reliable partnership ties in the energy sector have been a connecting bridge between Russia and Germany over many decades. Our countries have close relationships and have managed to find the best way to understand each other. The North European Gas Pipeline construction under the Baltic Sea will be another crucial step towards promoting our cooperation”, – stated Wulf Bernotat.
The North European Gas Pipeline (NEGP) is a fundamentally new route for Russian gas exports to Europe. Targeting at Germany, the Great Britain, the Netherlands, France and Denmark, NEGP is of great significance for meeting Europe’s soaring gas demand.
Back in December 2000 the European Commission resolved to award the NEGP Project with the TEN (Trans European Networks) Status.
With no transiting countries along its route, which excludes any potential political risks, NEGP will directly link the United Gas Transmission System (UGTS) of Russia with the European gas network and will ensure the utmost in reliable gas deliveries to West European consumers. Additionally NEGP will play a special role in providing abundant gas supply to the Kaliningrad region.
To link NEGP with UGTS of Russia, a 917-km-long Gryazovets-Vyborg gas pipeline will be built through the Vologda and Leningrad regions. Commissioning this pipeline will also help meet growing gas requirements of St. Petersburg and the Leningrad region.
To be built in the Portovaya Bay (near the town of Vyborg, Leningrad region), an onshore compressor station will be a starting point for NEGP’s offshore section (1,198 km) that will run under the Baltic Sea to Greifswald (Germany) with a potentail gas lateral to Sweden and then will go across Germany and the Netherlands to Bacton (the Great Britain).
NEGP’s working pressure will account for 210 Ata. With its nominal capacity to reach 27.5 bcm/y, the first line of NEGP is slated for 2010. Upon construction of the second line, NEGP’s design capacity will double to 55 bcm per annum.
NEGP will carry gas to be withdrawn from UGTS.
An eight-member Shareholders Committee has been set up to operate the North European Gas Pipeline Company joint venture.
The construction of NEGP will meet the most rigid environmental standards and won’t disrupt the Baltic Sea ecosystem.
Information Directorate, OAO Gazprom