The CEO of Russia's gas giant Gazprom, Alexei Miller, on Saturday made a number of announcements on the sidelines of the International Economic Forum in St. Petersburg in regard to the company's plans on constructing the South Stream gas pipeline, as well as the ongoing spat over debts on gas deliveries with Belarus.
RUSSIA, BELARUS SQUABBLE OVER GAS DEBTS - NO RESULTS
Belarus' announcement that Russia owes it for gas transit to Europe is only an attempt to draw attention away from its own debts, Russian Gazprom CEO Alexei Miller said.
Belarusian First Deputy Energy Minister Eduard Tovpinets on Friday evening announced that Gazprom owes some $200 million to Belarus for gas transit fees to Europe, the same amount that Gazprom says Belarus owes for gas deliveries.
"In football terminology, we could call this unsuccessful attempt [by Belarus] to create a 'fake offside,'" Miller said on the sidelines of the International Economic Forum.
In answering a question posed by journalists on how talks ended with Belarus, Miller answered: "Empty-handed."
Miller said he was unsure of the possibility of continuing talks with Belarus on the gas debt issue before Monday.
Talks on the issue continued on Saturday in St. Petersburg, but ended "empty-handed," according to Miller.
"We split up, and where they [the Belarusians] went, I have no idea," Miller said.
Belarus is a transit country for part of Russian gas exports to Europe. On Tuesday, President Dmitry Medvedev threatened tough measures against Minsk if it does not pay off its approximate $200 million gas debt in five days.
Gazprom also warned Belarus on Wednesday that it may cut gas supplies by 85% starting June 21.
Belarus refuses to pay the Russian gas price, which is set at $169 per 1,000 cubic meters in the first quarter of the year and $185 in the second quarter. Instead, it has been paying $150 since January 1. A Russian official earlier said Minsk had "plucked this price out of thin air."
SOUTH STREAM GAS PIPELINE: ENTERS FRANCE
Russian gas giant Gazprom will not grant 10% of its shares in the South Stream gas pipeline project to France's Electricite de France (EdF), Gazprom's CEO Alexei Miller said on Saturday.
Earlier on Saturday it was reported that Russia's Gazprom and Italy's Eni would each give EdF 10% of their shares, or 20% of the South Stream gas pipeline project.
"That is not being considered," Miller answered in response to a question by a journalist at the International Economic Forum.
Gazprom, Eni, and EdF signed a memorandum of understanding, bringing the French company into the South Stream gas pipeline.
The document was signed on Saturday at the International Economic Forum in the presence of Russian President Dmitry Medvedev and French President Nicolas Sarkozy.
Miller said the finalization of the contract for France entering into the South Stream gas pipeline could possibly be "by the end of the year."
South Stream, with an estimated price tag of 25 million euros, will connect Russia and the EU across the Black Sea and the Balkans, bypassing Ukraine.
Gazprom said last week it was ready to start South Stream's construction in 2013 and should begin pumping gas to Europe by 2015.
GAZPROM CEO NAMES CHAIRMAN OF SOUTH STREAM GAS PIPELINE PROJECT
The head of the Dutch Gasunie company, Marcel Kramer, has been named chairman of the board of directors and executive director of the South Stream gas pipeline project, Russia's gas giant Gazprom CEO Alexei Miller announced on Saturday.
"The [South Stream] project is progressing month to month and the time has come to bring light into the relation of its managers. I would like to introduce this person to you, he is Marcel Kramer," Miller announced on the sidelines of the International Economic Forum.
Kramer said he would officially begin his new position on October 1 of this year.
"I need to step down from my current position at the end of August...my replacement has already been found, and then I will wait until I begin working on South Stream," the current Gasunie president said.
Kramer was appointed Chairman of the Executive Board and Chief Executive Officer of Gasunie on July 1, 2005.
Kramer holds a degree in Private and Corporate Law. He was appointed Fellow of the Institute of Petroleum in London in 1987 and is professionally active in various organizations such as the International Association of Energy Economists (IAEE) and the Energy Delta Institute (EDI) in the Netherlands (an educational institute founded by Gasunie, Gazprom and the University of Groningen).
GAZPROM'S PLANS AND PERSPECTIVES
Gazprom is prepared to purchase all of Azerbaijan's gas volume, the company's CEO announced on Saturday.
"We are ready to buy as much [gas] as Azerbaijan is ready to deliver. We are ready to buy all of Azerbaijan's gas," Alexei Miller said at a press conference on the sidelines of the International Economic Forum.
Miller added that buying gas from Azerbaijan was "beneficial."
Deliveries of Azerbaijani gas began on January 1 of this year after Azerbaijan's GNKAR signed a contract with Russia's Gazprom in October of 2009 to deliver 500 million cubic meters of gas annually up to 2015, with the option of renewing the contract in the future.
Later the companies agreed to double gas deliveries to Russia, bringing the total amount of gas delivery from Azerbaijan to 1 billion cubic meters. The companies will again double that amount to 2 billion cubic meters in 2011.
Azerbaijan's gas reaches Russia through its Baku-Novo-Filya gas pipeline along the Caspian Sea to Russia's North Caucasus republics.
Miller said the company is looking into the perspectives of bypassing Belarus in gas deliveries to Europe, adding that it is technically possible.
"In regard to that question, we need to look into this calmly, technical possibilities exist," Miller said at a press conference on the sidelines of the International Economic Forum.
Miller pointed out one technicality that Russia's exclave of Kaliningrad receives its gas through a pipeline via Belarus.
In the fall of this year, Gazprom plans to finalize the technical and economic aspects of laying part of the South Stream gas pipeline underwater, after which the final cost of the pipeline project would be announced.
"I think we can talk about money in the fall," Miller said.
Miller also expressed that there will be no problem with financing the South Stream project regardless of the financial crisis.
Miller said Gazprom "has gas, a market and reliable partners" that will ensure the success of the project.
He said the construction of the South Stream pipeline was "a serious impulse for the economies of South and Southeastern Europe" as it will help develop the energy sector of the entire continent, including underground gas storage and electrical energy, adding: "All of Europe needs South Stream."
ST. PETERSBURG, June 19 (RIA Novosti)
