gas market

Gazprom abandons Nord Stream pipeline extension


Russian gas monopoly Gazprom has cancelled its plans to extend its Nord Stream gas pipeline to the UK, Reuters has reported, with reference to the source in the Russian company.

"The current political situation is difficult. Our requests to use the Opal [gas pipeline] were denied. There is no need to build two more branches," the source said.

"There are no plans to expand Nord Stream and extend it to the UK now. Such an option is not being considered," a second source confirmed.

In 2013, Gazprom announced plans to build two more branches of the Nord Stream and extend the pipeline to Britain. At present, gas is transferred to Europe via two branches with total capacity of 55 billion cubic meters, but the pipeline is now only half full because the Russian gas giant has restricted access to the European Opal gas pipeline in northeastern Germany.

On Tuesday Gazprom announced it would supply its first gas to Turkey via a new route across the Black Sea in 2016.

In early December, Moscow abandoned its plans to build the South Stream trans-Black Sea gas pipeline to bypass Ukraine, accusing the EU of taking an"unconstructive" position. Now it intends to put the route through Turkey, the latter having already been promised preferential prices for Russian gas.

Source: Unian
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