Russ Oil-Gas

January 21, 2008 – Russia Today – Poland’s new Prime Minister Donald Tusk claims it would be three times cheaper to expand capacity through Poland than building the huge Nord Stream undersea pipeline from Russia to Europe. Now Gazprom’s deputy CEO and export chief has revealed why he will reject Warsaw’s overtures. Gazprom is also claiming Ukraine’s new Premier Yulia Tymoshenko will fail in her challenge to their gas price deal, agreed last month. Gazprom's CEO, Aleksandr Medvedev, has disclosed that Gazprom is in talks with shareholders of the Shah Deniz gas field to buy gas from it. The Shah Deniz field in Azerbaijan is one of the world’s biggest untapped gas deposits. Aleksandr Medvedev: We started to discuss with Shah Deniz shareholders potential forms of co-operation, including the taking of gas from second phase. RT: Poland says the Nord Stream will be three times cheaper if it goes over the country, not underwater, but has the route already been fixed? A.M.: It’s not correct to compare Nord Stream with the potential extension of the Yamal Europe pipeline. From the very beginning the condition of execution of the 2nd Yamal Europe pipeline was increased demand in Poland for an additional 12 billion cubic metres of gas. We do not see it today, that’s why we’re not discussing this project. RT: The new Ukrainian Prime Minister says she will re-negotiate the Ukraine-Gazprom agreement for 2008. Can she do this? A.M.: No, legally not.