Still on: Nord Stream
'Nord Stream on track for 2011 startup'
The Baltic Sea gas pipeline project, Nord Stream, is on track to deliver first gas in the fourth quarter of 2011 as it previously promised, a senior executive told a gas conference on today.
"We're absolutely on track to deliver the project on time and we are in budget," financial director Paul Corcoran said to Reuters.
His comments came as a relief to those supporting the €7.4 billion ($9.34 billion) project, which Russian President Vladimir Putin said last week could be scrapped if Europe continues to delay the project.
Putin's comments were echoed on Tuesday by Gazprom's deputy chief executive.
Alexander Medvedev said Russia could opt for tanker exports of liquefied gas if Europe dragged its feet on pipeline projects.
The EU has identified the plan to pump 55 billion cubic metres of Russian gas annually to Europe via Germany - involving Russia's Gazprom, Germany's E.ON and BASF and Dutch Gasunie - as a key project to ensure secure gas supplies for Europe.
But EU lawmakers have called for a new investigation into the Nord Stream's environmental impact.
Corcoran dismissed fears the global financial crisis could dent the project's feasibility.
"It is true that liquidity isn't there, as it was two years ago," he said, adding that 30% of Nord Stream's financing will come from the equity market and the remaining 70% from the project finance market.
"What we hear is... although banks are closed for many types of business, the (global) project finance market is still open and this is exactly the type of project the bank is happy to see," he said.
He also said Nord Stream aims to receive all financing for the first phase of the pipeline by July 2009, and obtain the second and final phase's financing a year later.
"It is energy, it's long-term infrastructure, stable returns... In that sense, we can be sure the project will make good progress also financially."