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Main page > Comments > Fuel & Energy > GDF Suez joins Nord Stream
GDF Suez joins Nord Stream
The French energy company GDF Suez has finally declared it has completed the process of joining the Nord Stream project. Although the decision about this move was made long ago, only the posted press release on the H1 2010 financial results showed that the deal was closed in early July. The French got 9% in the Nord Stream operator having acquired 4.5% from the German firms E.On Ruhrgas and Wintershall each.
The benefit of GDF Suez is quite obvious - the company will have a possibility to ensure long-term gas supplies through a safe route having no political risks of transit. Amid the expected decline in natural gas production in Europe and mixed prospects of shale gas production this seems to be a rational step.
As far as Gazprom's interests are concerned, the involvement of the French firm in Nord Stream makes the latter a real European project (Russia + Germany + the Netherlands + France) depriving adherents of "European consolidation against Russia's energy weapon" of last arguments. Besides, Moscow will have a chance to more intensively pressurize Minsk and Kiev at negotiations demonstrating its real possibility to build bypassing gas pipelines (in case the transit states refuse to cede their main gas pipelines to Gazprom) despite the big money spent. The success of Nord Stream is supposed to make it clear to Ukrainian authorities that a delay in talks on handing over Ukraine's GTS to Russia will make construction of South Stream possible, which will deprive the Russian neighbor of its status of a transit state.
By the way, it is not ruled out that France's move to join Nord Stream is possibly linked to Russia's plans to buy the French Mistral helicopter carrier whose functions may not necessarily find application in the Russian Navy that do not implement faraway landing operations.
By Stanislav Mitrakhovich, NESF leading expert
Special report:
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The year 2023 saw an even larger drop in Russian exports of pipeline gas to Europe. In the past two years, Gazprom failed to export some 120 bcm of natural gas, and these quantities are now locked up in Russia. Another difficult case concerns extension of the current gas transit contract with Ukraine, which expires at the end of 2024. Gazprom is already looking for new opportunities.New Logistics of Russian Oil Business
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The Energy Strategy to 2050 was originally supposed to be approved before 15 September 2022, yet it was never adopted even as of November 2023. Moreover, not even a draft of the ES 2050 has been published yet. On the one hand, this vividly demonstrates the attitude to strategic documents on energy. It turns out that the industry on the whole copes with the unprecedented pressure of sanctions even without official strategies. On the other hand, Russian oil and gas has been facing really serious challenges that cannot be taken lightly. And immediate problems are a reflection of long-term threats too.Outlook for Russian LNG Industry
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