BELARUS NEWS AND ANALYSIS

DATE:

01/11/2007

Khristenko opposes 2nd gas link via Belarus

MOSCOW, Nov 1 (Reuters) - Russia's Energy Minister Viktor Khristenko said on Thursday he believed it made no economic sense to build a second stretch of a pipeline to Germany via Poland and Belarus, known as Yamal-Europe-2.

Khristenko's statement contradicted an earlier comment by Russia's Prime Minister Viktor Zubkov, who said last month he supported revisiting the idea of the second link.

Belarus has called on Russia to drop the idea of a new pipeline to Germany under the Baltic Sea, known as Nord Stream, saying it would be more profitable to build a second parallel link to the existing onshore pipeline.

"I think there is no justification for Yamal-Europe-2," Khristenko told reporters.

Belarussian officials have said the second Yamal-Europe link could cost $2-3 billion, much lower than the 5 billion euro ($7.21 billion), slated for the underwater section of Nord Stream.

Gazprom has said it would not revive the idea of the second link until gas demand in Belarus and Poland increases.

It has also said Nord Stream would allow it to reduce dependence on transit states and improve Europe's energy security, which suffered badly from gas supply cuts following Gazprom's pricing disputes with Ukraine and Belarus.

The first Yamal-Europe link was commissioned early this decade and is trans-shipping around 30 billion cubic metres of gas per year. The second stretch could in theory double its capacity.

Nord Stream's capacity is projected at 22.5 bcm, gradually rising to 55 bcm.

Source:

http://uk.reuters.com/article/oilRpt/idUKL0162633320071101