Gazprom, E.ON, Shell, OMV to Expand Baltic Gasline
Russian gas giant Gazprom has agreed to build a new pipeline to Germany under the Baltic Sea with some of its biggest gas buyers: Anglo-Dutch Shell, Germany's E.ON and Austria's OMV.
The move comes as the Russian gas company, under U.S. sanctions, is trying to find new ways to deliver gas to Europe bypassing conflict-stricken Ukraine.
"Since the commissioning of Nord Stream pipeline, Gazprom has been investigating potential extension of this export route. Now we are going to proceed with the implementation of this project together with our partners," Gazprom CEO Alexei Miller said in a statement.
Gazprom Spokesman Sergei Kupriyanov said on the sidelines of the St Petersburg International Economic Forum that Gazprom would own 51 percent in the project to build stage 3 and 4 of Nord Stream, with capacity of 55 billion cubic metres per year.
Gazprom wants to bypass Ukraine, its key gas export route to Europe, and plans to build the Turkish Stream pipeline beneath the Black Sea to ensure smooth transit of Russian gas when the transit contract with Kiev expires in 2019.
Despite plans to start laying pipes in coming weeks, Moscow and Ankara have no firm agreement on the project yet.
Nord Stream, already consisting of two lines, has an annual capacity of 55 billion cubic metres. Its shareholders are Gazprom, Wintershall, E.ON, Gasunie and ENGIE.
Gazprom is currently allowed only limited access to the pipeline under a European Union law which seeks to prevent energy suppliers from dominating infrastructure.
Kupriyanov told reporters that apart from E.ON, Shell and OMV there could be other shareholders with the expansion project.
Reporting by Dmitry Zhdannikov
