3 April 2012, 16:28

The Nord Stream: will Britain join?

The Nord Stream: will Britain join?

Russian experts believe that the UK could join the Nord Stream oil project. Soon, the UK may run out of energy resources and it needs to diversify its imports to lower the prices. The UK also wants nuclear energy to ease the deficit and plans to construct 8 nuclear power plants by 2025.

Russian experts believe that the UK could join the Nord Stream oil project. Soon, the UK may run out of energy resources and it needs to diversify its imports to lower the prices. The UK also wants nuclear energy to ease the deficit and plans to construct 8 nuclear power plants by 2025. Russia’s Rosatom nuclear corporation is among the bidders.

The UK has been importing gas for the last 5 years as its own stock in the North Sea is depleting. Gas production in the UK has halved since 2000. London buys fuel mainly from Qatar and Norway but now it’s interested in reliable supplies amid growing consumption. Oslo is unlikely to boost its gas production that quickly, while Qatar is more oriented to China and Japan. London needs new suppliers, believes the head of the Energy Development Fund Sergey Pikin:

"It’s always good to diversify energy supplies as it promotes competition which leads to cheaper resources. Thus, the UK has chances to lower gas prices that recently have gone up as the North Sea resources are shrinking."

Today, the UK is negotiating a share in the Nord Stream with Russia’s Gazprom gas giant. The pipeline was launched last year and already covers 15% of Europe’s fuel needs. Its capacity will increase when the second section begins operation. The UK can be an important investment partner for the project, taking into account Gazprom’s successful performance in the UK market. London, in its turn, will enjoy reliable unfailing gas supplies, says analyst of the National Energy Security Fund Alexander Pasechnik:

"Britain is serious about joining the project. Its gas consumption is going up so that’s a good reason to join the Nord Stream. This winter was cold and the UK experienced record gas consumption. Thus, now, European consumers tend to see Gazprom as a guarantor of stable supplies."

The UK also plans to construct new nuclear power plants. The project was to be implemented by the Horizon Nuclear Power- a joint venture of Germany’s E.On and the RWE concerns. However, after the Fukushima disaster Germany shut down all nuclear projects. But the UK can’t do the same, ex-IAEA deputy head Viktor Murogov told the VoR.

After discovering oil and gas in the North Sea, the UK shut the majority of its reactors (Germany has the same plans) but the reserves are running out. (end)

Now, Horizon Nuclear Power is on sale. Rosatom intends to buy it and guarantees that UK NPPs will conform to all safety standards. Rosatom’s top standards are widely recognized and can be the main advantage to defeat its French and Japanese competitors.

  •  
    and share via