The NEGP will run from the Baltic coast near Vyborg, on the Russian-Finnish border, to the Greifswald region in north Germany, and experts said it would make it easier for Russia to get access to markets in countries around the Baltic Region while reducing transit costs
"[The NEGP] could replace the Ukraine pipeline," said Vladimir Likhachev, deputy director of the Russian Academy of Sciences Institute of Energy Research.
Russian gas currently reaches Western Europe by pipelines through Ukraine and Belarus, and anxiety was raised across the continent following January's spat between Russia and Ukraine that saw supplies to the former Soviet republic cut off. Russia says the NEGP will guarantee reliable supplies to European consumers, and reduce dependency on transit countries.
Credit Suisse bank analyst Vadim Mitroshin said the project would resolve the problem of expanding capacities and retaining Gazprom's competitive advantages.
Experts also said the choice of Gerhard Schroeder to head the shareholders' board for the multi-billion dollar pipeline was a wise decision, and that the former German chancellor possesses all the necessary qualities and work experience to balance both Russian and European consumers' interests.
Likhachev said it was "a happy choice."
"The NEGP is positioned as an international project," he said. "That is why Schroeder is an adequate figure known in Europe and possessing political influence to promote the project, in particular, as regards portfolio investment collection."
The NEGP will comprise two parallel sections of 750 miles each, at a cost of 4.7 billion euros. Project manager Gazprom holds a 51% stake, with Germany's BASF and E.ON holding 24.5% each.
