27 May 2004 03:54
Gasunie proposes German participation in pipeline to Britain
MOSCOW. May 27 (Interfax) - Dutch gas concern Gasunie has proposed to Germany's Ruhrgas and Wingas, a joint
venture between Wintershall and Russia's Gazprom, and also to the Belgian gas transport company Fluxys, to
participate in financing and operating a gas pipeline from Holland to Britain, a source in the Dutch company's
Moscow office told Interfax.
The source said that the planned capacity of the pipeline between Balgzand in Holland and Bacton in Britain (Bacton-
Balgzand Leiding - BBL) is 16 billion cubic meters per annum. The source said that if the German and Belgian companies
accept these proposals and sign contracts to supply gas through the pipeline, its capacity may be increased. Investment
in the project is estimated at 500 million euros - the pipeline will stretch 235 km and be 36 inches in diameter. The
pipeline should be built by the end of 2006.
The source said that at the moment a contract has only been signed
with the British company Centrica to buy 8 bcm of gas from the BBL
A separate company will be set up to operate the pipeline in which Gasunie will be the main shareholder.
pipeline. However, he said that Centrica does not have to buy the gas only from Gasunie Trade & Supply.
The source said that to make the project economically viable, Gasunie has approached the regulatory authorities in
Britain and Holland to exempt the company from a number of new regulations introduced in connection with the
liberalization of the gas market in Europe.
Ruhrgas AG is part of the German energy concern E.ON AG.
[RU EUROPE ASIA EEU EMRG GB NL ENR ELG NGS TRD DE WEU]
As a result, Gasunie has received permission to independently set the tariff for gas transportation through the
pipeline for an indefinite period, the source said.
N.V. Nederlandse Gasunie is a gas transportation and trading company consisting of the subdivisions Gasunie Trade and
Supply and Gas Transport Services. Gasunie shareholders include the Dutch government 50%, and ExxonMobil and Shell - 25%
each.
Wingas was set up in early 1990s to market Russian gas on the European, mainly German, market and to construct a gas
pipeline network. German oil and gas producer Wintershall, which is completely owned by BASF, holds 65% of Wingas, and
Gazprom holds 35%.
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