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3/21/06

GAZPROM BROADENS, DEEPENS INROADS INTO EUROPEAN UNION'S INTERNAL MARKETS, TRANSPORT SYSTEMS

Eurasia Daily Monitor

"GAZPROM BROADENS, DEEPENS INROADS INTO EUROPEAN UNION'S INTERNAL MARKETS, TRANSPORT SYSTEMS

By Vladimir Socor

Tuesday, March 21, 2006

Even as some European Union authorities in Brussels attempt to formulate a common EU energy policy, major European players seem to be vying for bilateral deals with Gazprom that could lock their countries into long-term dependence before any common policy is in place.

On March 17, Gaz de France announced that it is negotiating with Gazprom on the possibility of being connected to the planned Northern European Gas Pipeline (NEGP) that would carry Siberian gas to Germany across the Baltic seabed. According to Gaz de France commercial director Jean-Marie Dauger, French participation 'would make the project more European, not just German.' Whether this statement implies that Gaz de France seeks to elbow its way into the deal or has reached an understanding with the German companies seems far from clear. Gazprom's deputy chairman Aleksandr Medvedev confirmed that the Russian company is considering possible participation of new partners in this project. The Yuzhno-Russky field is the upstream source of gas for the planned NEGP. The field's export is earmarked for the German companies, E.ON Ruhrgas and Wintershall, once the NEGP becomes operational (Interfax, Bloomberg, March 17). "

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