Russia might prefer LNG to Nord Stream pipeline
Russian Prime Minister Putin says Russia could decide to withdraw from the Nord Stream project and instead ship the gas to other markets as LNG.
-Europe has to decide: does it need this pipeline or not! If it does not need it, we will withdraw from it and [instead] construct LNG plants and ship the gas to other markets! Putin told the journalists, the Russian government website reports.
In the same press conference Finnish PM Matti Vanhanen expressed support for the pipeline project.
-We have had a substantial conversation on this [project], the Finnish Prime Minister said. –Finland supports the position that the natural gas which will be sent through this pipeline is needed in Centra Europe, he maintained.
Despite the alarming signals from PM Putin, the Nord Stream company itself reports that the project is on track and that the current financial crisis will not threaten the progress.
“Nord Stream and its Shareholders do not regard the financial crisis as an obstacle to financing the project. Shareholders will meet about 30 per cent of the project costs with equity contributions, with 70 per cent to be financed externally through limited recourse finance. The project remains attractive to lenders since it has strong backing from its Shareholders, a solid contractual framework and is an important infrastructure project in the energy market with long-term and stable returns”, a press release from the company reads.
