Gazprom says halt to new Yamal pipeline

With great bravure, the state company in early November launched construction of the multi-billion dollar project. In a ceremony, Gazprom leader Aleksey Miller presented the new piece of infrastructure between Yamal and Europe. In a direct tele-link, President Putin said ”lets start”, whereupon two welders symbolically connected the first two project pipes.

The Ukhta-Torzhok 2 pipeline is to follow the Ukhta-Torzhok 1, the 81,5 billion cubic meters capacity pipeline which was completed in 2012. By year 2019, the Ukhta-Torzhok 2 was to provide an additional 45 billion cubic meters of Yamal gas to consumers in the EU. The pipeline will stretch from the Bovanenkovo field in Yamal, across the Baydarata Bay, through the Komi Republic and to Torzhok, the pipeline hub northwest of Moscow.

Now, the fate of the project could be in jeopardy. The cancelled tenders have an accumulated value of 13 billion rubles and include the construction of 400 km of pipeline. Sources close to the company says to newspaper Vedomosti that the pipeline will not be buried and that new tenders are due to be announced.

However, Gazprom has recently cancelled also several more tenders. Among them is tender to the 822 km long ”Sila Sibiri” connection to China.