The Nord Stream 2 natural gas pipeline developed by Russia's Gazprom and major European companies will proceed in accordance with EU rules, despite the Russian giant's financial troubles, a senior energy expert said Tuesday.
'We will see Nord stream 2 developed. Gazprom will develop it within EU rules,' John Roberts, energy security specialist at Methinks Ltd., said speaking at the Black Sea Offshore Conference in Bucharest.
Gazprom owns 51 percent of the shares in the $11 billion project that will deliver gas with a capacity of 55 billion cubic meters beneath the Baltic Sea through a 1,200 kilometer-route to Germany. The project plans to bring gas to France, the U.K., the Netherlands and Denmark.
Other companies in the project are Royal Dutch Shell, Germany’s E.On, Austria’s OMV and Germany’s Wintershall Holding, with a 10 percent stake each, while France’s ENGIE has a 9 percent share.
Roberts explained that these major European companies would not have a stake in the project if it was not viable or would not proceed.
'They wouldn’t move, if they didn’t believe they would make money out of it,' he said.
However, the project could be the viewed as potentially breaching the EU's competition rules following Gazprom's anti-trust case regarding over pricing in its operations in eastern Europe which has yet to finalized, but which could result in a fine of $8 billion.
Gazprom is experiencing financial difficulties due to the deterioration in Russia's economy. Since last year, the ruble has almost halved in value against other currencies.
'Gazprom’s earnings are $108 billion for this year compared to $145 billion in 2014. That’s not good for a major company in the Russian economy,' Roberts added.
By Furkan Naci Top
Anadolu Agency
furkan.top@aa.com.tr