Industry NewsThe Nord Stream gas link between Russia and Germany is expected to record its first flows this week. The pipeline was created and funded by Russia's Gazprom to bypass traditional transit nations. The need for additional links has become more acute in recent years, particularly following the supply dispute between Russia and Ukraine which cut exports to Europe over more than one winter.
The 10 billion dollar pipeline has the potential to improve security of gas supplies throughout Europe. However, the European Commission remains concerned over the extent that Europe will continue to rely on imports from Russia. The Commission is supporting alternate links, bypassing Russia, such as the Nabucco pipeline, although the development of these assets is lagging behind Gazprom's schemes.
Nord Stream is expected to be operational in 2012, leaving the potential for further disputes this winter to impact on European gas supplies. There have already been some speculation that the agreement between Ukraine and Russia could be put at risk once again over pricing conditions.
Russian Prime Minister Vladimir Putin, commented, "We are slowly and surely turning away from the dictate of transit states."