EU to participate in developing Shtokmanskoye deposit

Europe is studying the possibility of taking part in developing the Shtokmanskoye gas condensate deposit (on the Barents Sea shelf), Coordinator for the EU-Russia Energy Dialogue commission Christian Cleutinx said, addressing the second Russian oil and gas conference on Tuesday.

According to him, the European Investment Fund must complete the feasibility study of the development of the Shtokmanskoye deposit in June. Then the European Commission will consider the mechanisms of insuring the non-commercial risks connected with the development of this deposit, the spokesman for the European Commission pointed out.

According to him, the European Commission intends to take part in supporting the Yamal-Europe transport system and the Druzhba-Adria oil pipeline. The European Commission also considers the possibility of its participation in the construction of a new trunk pipeline to Europe.

Christian Cleutinx underscored the importance of a long-term cooperation between Russia and Europe in gas deliveries. This is critically important for the further development of the gas market in the European Union, he said. According to him, Europe very much depends on gas imports, because electric energy is produced with the use of natural gas.

Russia is still one of the main gas partners, because it produces more than 30% of world gas, the spokesman for the European Commission pointed out. Gas consumption in Europe grows from year to year, and at the experts' estimates it will more than double in 2020.

Comparing the gas markets of Russia and Europe, Christian Cleutinx said that the Gazprom company in Russia accounts for more than 70% of gas production, and only 23% are produced by independent companies.

In Europe, he said, the situation is different - it is the private companies that produce the greater part of gas. It is necessary to remove the trade barriers between Russia and the European Union and to create a common space to ensure contacts, safety and fair prices. Cleutinx said, having reminded the conference participants that in 2004 Russia and the European Union started their energy dialogue.