EU Meddling Allows Russian Pipeline Construction to Accelerate

Russian natural gas giant Gazprom has been able to accelerate construction as well as save money on the trunk line leading to the Nord Stream 2 Russia-Germany pipeline as a result of the South Stream project's cancellation, which was a product of EU intervention.

Gazprom has transferred 330,000 metric tons of pipe originally meant for the South Stream project to the new Nord Stream 2 pipeline, Vedomosti reported. The proposed southern natural gas line would have connected Russia with central Europe via Bulgaria.

Talks to build Gazprom's alternative pipeline broke down after the intervention of the European Commission. As a result, pipes already made for the project can now be used to build 40 percent of the pipeline leading to the entirely commercial Nord Stream 2 pipeline from Russia to Germany, which Eastern European countries have claimed circumvents their own pipelines.

"We are deploying a large-scale operation to implement the Ukhta-Torzhok-2 pipeline. The task has been assigned, deadlines have been set down. By the end of 2019, the pipeline will be built and ready for use," Gazprom head Alexei Miller said on Wednesday.

Gazprom will still use parts of the pipeline assigned for the South Stream for the Turkish Stream pipeline currently being negotiated, although it will have a reduced capacity, now used for South Stream. Gazprom has already laid down 240 kilometers of a total 1625 kilometers of pipeline for the reduced-capacity Southern Corridor, which will now be conserved for future projects.

Miller said on Wednesday that forest clearing has begun along the pipeline's path and the company will soon announce the subcontractors who won bids to build the different legs of the pipeline. Holding on to the unused Southern Corridor pipes has also allowed Gazprom to save money on pipe contracts following the Russian currency's 2014 devaluation.