Prime Minister David Cameron discussed a project to pump Russian gas to Britain as he met with Russia’s President Vladimir Putin on the sidelines of the Olympic Games in London this summer. According to media reports, Gazprom and BP may clinch a deal as early as 2013.
Extension of the Nord Stream gas pipeline, that ships Russian natural gas into Europe, will contribute to Britain’s energy security. A statement to this effect was made by BP Russia’s spokesman Vladimir Buyanov.
As talks between BP and Gazprom continue, the ‘admission fee’ for BP may amount to $300 million, while the construction of the extension will take about two years, ruvr.co.uk reports.
According to media reports, Gazprom and BP may clinch a deal as early as 2013. A BP spokesman refused to comment though, saying that the talks are currently at an early stage.
Nevertheless, BP Russia spokesman Vladimir Buyanov has told a Voice of Russia correspondent that BP is already negotiating the terms of a future agreement with the Nord Stream consortium.
A branch of the Nord Stream pipeline into Britain will guarantee alternative sources of gas supplies and will thereby boost the country’s energy security. It will connect the Russian port of Vyborg with the German port of Greifswald and will stretch as far as Norfolk in Britain. Expert Mikhail Krylov comments on the cost of the project.
‘The pipe to Norfolk will be completed in a couple of years. Russia and Britain could unite on the basis of economic and strategic interests they share. BP has been looking to establish cooperation with Gazprom after its overseas business sustained substantial damage. Being starved of gas, Britain will push for an extension of the Nord Stream Pipe Line.”
Over the past 5 years Britain has been importing LNG (Liquefied natural gas), mainly from the US, Norway, and what’s more important, from the Middle East. In a situation when gas supplies from the Middle East could come to an end and the country’s own oil and gas reserves in the North Sea have been almost used up, London is more than concerned about increasing and diversifying gas supplies. Prime Minister David Cameron discussed a project to pump Russian gas to Britain as he met with Russia’s President Vladimir Putin on the sidelines of the Olympic Games in London this summer.