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Design capacity of the North European Gas Pipeline is 55 billion cubic meters annually

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St. PETERSBURG, June 14 (RIA Novosti) - The design capacity of the North European Gas Pipeline (NEG) is determined at 55 billion cubic meters annually, announced Gazprom's Board Chairman Alexei Miller speaking at the 9th international economic forum in St. Petersburg.

He reminded the participants that the resource base for the pipeline would be the Yuzhno-Russkoye gas field (the Tyumen region, Siberia). Exploration and drilling work is currently underway at the field.

The gas pipeline will run along the bottom of the Baltic Sea from Vyborg (Russia's north-west) to the coast of Germany. The construction of marine gas pipeline sections to deliver gas to consumers in Finland, Sweden, Britain and other countries is planned under the project. The total projected length of the pipeline is 3,000 kilometers. The construction cost is estimated at about $5.7 billion.

Speaking about the Shtokman gas condensate field (the Barents Sea shelf, Russia's north), Miller said Gazprom's partners in the project would be determined by the end of the year.

"We expect to determine our partners on the project by the end of 2005," Miller stated.

The gas reserves at the Shtokman gas condensate field are estimated at about 3.2 trillion cubic meters. Gazprom experts have prepared a feasibility study of the project. They assessed the technical feasibility of the project and the costs of exploration, liquefaction of gas and its delivery to the U.S. market. The Gazprom data indicates the gas supplies to the U.S. market will have competitive prices.

At the end of June, Director and Coordinator of the European Commission on issues of the EU-Russia Energy Dialogue Christian Cleutinx announced that the European Union had been studying the prospects of its participation in the development of the Shtokman gas field and must finish its own technical and economic assessment of the project in June.

According to the project, the production of gas at the Shtokman gas field might start in 2010.

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