Russia to launch sub-Baltic gas pipeline to Europe on Nov. 8

MOSCOW - The Nord Stream gas pipeline project from Russia to Europe will be launched on Nov. 8, Russia's energy monopoly Gazprom said on Oct. 3.

Gazprom CEO Alexei Miller told Russian Prime Minister Vladimir Putin in a meeting that the construction of the Nord Stream project's first line had been completed and the company is now preparing the starting-up and adjustment work.

"Today I can name the exact date when the pipeline will start operating. It's Nov. 8, 2011," Miller told Putin.

Miller added the second line of the project is now being built and the company has starting ecological monitoring of the construction.

European energy firms take 50 percent stake in South Stream natural gas project

NEW YORK - Russian gas pipeline operator Gazprom, chemical company BASF and energy companies EDF and Eni have signed an agreement establishing the entry of BASF subsidiary Wintershall and EDF in the South Stream gas pipeline project.

Wintershall and EDF would each take a 15 percent interest in the project for conveying Russian natural gas to Europe under the Black Sea, while Gazprom and Eni would have a respective 50 percent and 20 percent stake in the project.

Executives from each company signed the agreement on Sept. 16 in the presence of Russian Prime Minister Vladimir Putin in Sochi, Russia.

"Today's agreements are part of the strategic partnership signed between Eni and Gazprom in 2006, which envisages the commitment of both parties to jointly develop projects in the entire gas chain," the company said.

The company expects construction of the South Stream gas pipeline to begin in 2013 and that the first gas supplies will be ready for delivery to Europe by 2015.

Analysts estimate that Europe's yearly demand for additional gas imports could reach 80 billion cubic meters by 2020 and surpass 140 billion cubic meters by 2030.

Russia turns increasingly beyond borders for natural gas supplies

Russia's predicted gas shortfall seems to have set in earlier than expected.
Gazprom's gas production is expected to decline to 510 billion cubic meters (bcm) in 2009 from a level of 550 bcm in 2008. Gazprom as a result may be forced to limit its exports to 170 bcm in 2009, compared to 179 bcm last year.
Russia's biggest Soviet-era gas fields are past their prime. Moscow expects that through development of giant new fields, the decline in production can be made up. The fields at Bovanenkovskoye and Yamal were expected to produce their first gas by 2011, and Shtokman by 2015. But the financial crisis in the West affects fresh investments.
As a result, Central Asia's importance as a source of cheap energy has increased for Russia. Gazprom is currently buying roughly 50 bcm of gas from Turkmenistan, 15 bcm from Kazakhstan and seven bcm from Uzbekistan. Central Asian producers accounted for about 14 percent of Gazprom's total production last year.