Gazprom puts hold on Nord Stream expansion

According to sources at the state-controlled firm, Gazprom has put an expansion of its Nord Stream gas pipeline on hold.

In 2014, Gazprom said it could increase the pipeline that runs under the Baltic Sea to Germany with a line that would go to Britain. The construction of two more pipes would have doubled Nord Stream's capacity.

Gazprom Chairman Viktor Zubkov said a weak gas market was forcing the firm to defer projects at the European Gas Conference in Vienna.“How can one be confidently planning long-term investments if in one year the market can drop by as much as the Nord Stream capacity?

"What we have now in the EU is complete chaos in the market and lack of understanding of long-term goals for both suppliers and consumers.

"When the price is decreasing... is difficult to realise these projects and sometimes it's even not possible."

Sources at Gazprom said the decision was also related to the "complicated" political situation.

Edited from various sources by Hannah Priestley-Eaton

Published on 02/02/2015

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