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09.04.2013 12:47

Gazprom, Gasunie Mull Nord Stream Extension to the U.K.

If the project comes through, the extended arm of Nord Stream would give Gazprom greater access to Britain, which has an annual demand of 100 billion cubic metres

AUTHOR: publics.bg

© Nord Stream

Russia's Gazprom and Dutch Gasunie signed a letter of intent on Monday to explore the potential expansion of the Nord Stream pipeline to Britain, one of several deals signed during yesterday’s visit of President Vladimir Putin to the Netherlands, Reuters reported.

If the project comes through, the extended arm of Nord Stream would give Gazprom greater access to Britain, which has an annual demand of 100 billion cubic metres (bcm).

For the Netherlands, long-term cooperation with Gazprom would secure gas flows as its gas reserves dwindle and the country is expected to become a net importer of gas in 2025.

Alexei Miller, head of Gazprom, said the two companies discussed the possibility of increasing the Nord Stream pipeline with a line that will go to the United Kingdom. He said the capacity of the new pipeline would be about 27.5 bcm, the same as the capacity of each of the two existing pipelines.

"The key issue is to sign a long-term contract with our British partners to supply gas to the British market," Miller told reporters in Amsterdam.

Nord Stream has annual capacity of 55 bcm, enough to supply around 10 percent of the EU's annual gas needs. Because of rules limiting the market share of individual distributors within the European Union, Gazprom has been unable to use the pipeline at maximum levels.

Gazprom and its oil arm Gazprom Neft signed two deals with Royal Dutch Shell - one for joint shale oil exploration and drilling, the other for joint exploration and drilling of hydrocarbons on Russia's continental shelf.

Gazprom will secure cushion gas for Europe's biggest natural gas open access storage to be built in the Netherlands in exchange for nearly 2 bcm of capacity.

Once it is completed in 2015, Gazprom will gain nearly half or 1.9 bcm of gas in Bergermeer storage

A consortium of Vitol Tank Terminals International (VTTI) and Russian investment group Summa will invest USD 1 billion in a new terminal in Rotterdam port.