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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 2011 turned out to be rather contradictory for the oil and gas industry. On one side, preliminary results of basic parameters seem quite satisfactory. On the other side, the depletion of oil production growth potential is becoming more obvious. Prime Minister Vladimir Putin several times mentioned that the oil industry reached its peak. This was described as an ordinary event, although in reality it reflects recognition of strategic mistakes once made.The Present and Future of Gazprom
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National Energy Security Fund © 2007