INTERNAL MARKET FIRST. (Prima il mercato interno)

Gazprom said on Saturday it could not pump additional gas to Western Europe amid a cold snap, after EU officials and energy firms said the Russian giant's deliveries had dropped in several states.

"Gazprom at the moment cannot satisfy the additional volumes that our Western European partners are requesting," the company's deputy chairman Alexander Kruglov said at a meeting with Prime Minister Vladimir Putin, according to Russian news agencies.

Putin told Gazprom at the meeting that the demands of Europe had to be respected but the firm's priority was to supply consumers in Russia, which is also enduring a spell of very cold weather.

"I ask you to make efforts to meet the demands of our foreign partners, bearing in mind that the prime task of Russian energy firms and Gazprom in particular is to satisfy the internal demand in Russia," said Putin.

"This is the priority task."

Kruglov said that Gazprom was carrying out deliveries in line with its agreements with European states but that it was unable to pump additional gas that had been requested.

He said there had been a reduction of 10 percent in gas volumes delivered on previous days but that now deliveries had returned to their normal levels.

The European Commission said Friday that Austria, Bulgaria, Germany, Greece, Hungary, Italy, Poland, Romania and Slovakia had each registered drops in gas supplies.

But a spokeswoman for EU energy commissioner Guenther Oettinger, Marlene Holzer, had said that Gazprom contractual small print with European buyers "allows for a certain flexibility."

German energy giant RWE said it was currently receiving 30 percent less gas from Russia than is foreseen in contracts.

"Supply for clients is however assured, notably due to well filled stocks," a spokesman said, adding there would be no problem in the days to come.

Its main rival E.ON, which obtains 27 percent of its gas annually from Gazprom, said it was "well-armed against reductions in supply from Gazprom", even if demand was high for a long period, due to high stock levels.

Russian gas amounted to 33 percent of Germany's supplies in 2010, its main source of gas imports ahead of Norway with 29 percent.

The economy ministry of the Netherlands meanwhile said the country produced sufficient gas itself and had sufficient reserves "to face all the needs".

"We have other possibilities of supply," said spokeswoman Esther Benschop, saying the country had "great flexibility" in gas.

Austria on Friday had logged a 30 percent fall in Russian deliveries and Italy had seen deliveries fall by 24 percent. Deliveries to Italy's gas network Snam Rete Gas were down 28.9 percent on Friday.
(JakartaGlobe)

RUSSIA-UKRAINE = 1-0

Entrerà in funzione oggi, martedì 8 novembre, North Stream, la pipeline che porterà il gas russo in Germania attraverso il Baltico. Dmitrij Medvedev e Angela Merkel hanno “accolto” quel gas in Germania, a Lubmin, girando il rubinetto che gli ha aperto la rete europea. Alla cerimonia hanno preso parte anche il primo ministro francese, François Fillon, il collega olandese Mark Rutte e il commissario europeo all’Energia, Gunther Oettinger: Francia e Olanda sono gli altri due Paesi che aderiscono al consorzio, diviso tra Gazprom, le tedesche Wintershall e E.On Ruhrgas, l’olandese Gasunie e la francese Gdf Suez.

“I consumatori europei potranno avere fino a 55 miliardi di metri cubi di gas dalla Russia nei prossimi anni con il lancio della seconda condotta del North Stream – ha affermato Medvedev in una conferenza stampa congiunta con la Merkel a Berlino – il gas naturale russo e l’elettricità prodotta con essa garantiranno una fornitura energetica stabile ai consumatori del continente e aumenteranno la loro sicurezza energetica”. Il primo tratto pomperà 27,5 miliardi di metri di cubi di gas all’anno, circa la metà di quella che sarà la capacità definitiva della struttura. North Stream parte da Vyborg, nei pressi di San Pietroburgo, e termina a Lubmin, in Germania.

North Stream è lungo 1.224 chilometri e ha ora una capacità di trasporto di 27,5 miliardi di metri cubi all’anno, che diventeranno 55 con la costruzione di una seconda linea, attesa per l’autunno 2012. Il monopolio russo Gazprom ha già siglato contratti di fornitura a lungo termine con diversi Paesi europei, inclusa la Germania, la Danimarca, il Belgio, l’Olanda, la Francia e la Gran Bretagna. In attesa che South Stream colleghi invece la Russia all’Europa meridionale, sempre con l’obiettivo di ridurre i volumi del gas russo – finora l’80% – esportato in Europa attraverso l’Ucraina.
(East Journal)

NORD STREAM TIME. (L'ora del Nord Stream)

Construction of the controversial Nord Stream pipeline from Russia to western Europe under the Baltic Sea has been officially launched.

Gazprom holds 51% of Nord Stream, which will run from the Russian port of Vyborg to Germany's Greifswald.

Russian President Dmitry Medvedev and German Chancellor Angela Merkel attended the ceremony near Vyborg.

The project was given the go-ahead only in February amid fears that the pipeline could damage the Baltic Sea.

President Medvedev said at the ceremony that the pipeline "for the first time - which may be one of its main achievements - will ensure direct supplies of Russian gas to western Europe, bypassing transit territories".

The existing pipelines run from Russia to EU countries via Ukraine, Belarus and Moldova.

Russia provides up to 30% of the gas consumed in Europe, and many European countries have been keen to secure alternative energy supplies.

Critics have argued that European countries do not need more gas from Russia and that the project is too expensive.

But Gazprom deputy chief executive Alexander Medvedev said there was plenty of demand for the gas.

"All the gas volumes have either been contracted, or have been formalized in binding obligations," he told journalists.

Gas supplies from Russia to Europe have been threatened or disrupted in the past due to political and financial disputes between Moscow and its neighbours.

But Russian President Dmitry Medvedev said at the ceremony: "This country [Russia] has been cooperating with European neighbours in the gas sector for over 40 years.

"This cooperation has stood the test of time to the full extent."

The ceremony was also attended by Nord Stream board chairman and former German Chancellor Gerhard Schroeder, Dutch Prime Minister Jan Peter Balkenende and European Commissioner for Energy
Russian gas monopoly Gazprom said on Wednesday that the first pipe had been laid under the sea.

The pipeline will be passing through Russian, Finnish, Swedish and German waters.

Last month, Nord Stream secured a 3.9bn-euro ($5.4bn; £3.5bn) fund to complete the first phase of the pipeline.

"Debt financing will cover 70% of the project costs while the remaining 30% will be provided by the project shareholders," said Paul Corcoran, financial director of Nord Stream AG.

German companies BASF-Wintershall and E.On Ruhrgas each own 20% of Nord Stream, while Gasunie of the Netherlands holds 9%.

Alexey Bulgakov from Troika Dialog investment bank pointed out that "Gazprom and its partners seem to have managed to raise funds at rather low interest rates."

The overall cost of the project, due for completion in 2012, is expected to reach 7.4bn euros.

Russia hopes to pump up to 55bn cubic metres of gas a year to EU countries through the pipeline.
Supporters of the project say that it will secure gas supplies from Russia to Europe.
But environmentalists argue that building the pipeline could lead to toxins lying on the sea bed being stirred up, as the Baltic sea is one of the most polluted in the world.

Finland had refused to give the green light to construct the pipeline, but finally agreed to it in February under the condition that ships laying the pipeline do not lay anchor in Finland's economic zone.

The final hurdle was overcome after Russian Prime Minister Vladimir Putin assured Baltic leaders that the project was safe, as extensive research had been carried out into any environmental impact of the pipeline construction.

Apart from the Nord Stream, Russia has been planning another pipeline, the South Stream, which will run from southern Russia to Bulgaria under the Black Sea.

Meanwhile, Turkey, Romania, Bulgaria, Hungary and Austria last July signed an agreement to construct the long-planned 3,300km Nabucco natural gas pipeline.

It is expected to pump up to 31bn cubic metres of gas annually from the Caspian and the Middle East across Turkey and into Europe.
(BBC)