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Estonia backs overland gas pipe from Russia

03 Oct 2007 13:45:05 GMT
Source: Reuters

JURMALA, Latvia, Oct 3 (Reuters) - Estonia said on Wednesday it would back an overland pipeline to take gas from Russia to western Europe and that the undersea version planned by Gazprom <GAZP.MM>-led Nord Stream was for political reasons.

Estonia last month rejected an application for survey work in its maritime economic zone by Nord Stream, which includes Germany's BASF <BASF.DE> and E.ON <EONG.DE>.

"There are lots of environmental concerns because the International Maritime Organization has declared the Baltic Sea area as very fragile," said Estonian Foreign Minister Urmas Paet, explaining why his country rejected the survey.

He was speaking in this Latvian seaside town near Riga after a meeting of Baltic and Benelux foreign ministers.

"Now it seems that political reasons are more important than the environment," Paet added.

"The main alternative for the pipeline has not been properly investigated, which is the mainland, and not the fragile Baltic sea." Lithuania and Poland also back an overland pipeline.

Nord Stream has said its pipeline will respect all environmental concerns.

The pipeline, which would bypass Ukraine, Poland and other transit energy states, has dismayed countries that have relied on cheap Russian energy supplies and transit revenues.

It has also aroused environmental concerns.

Dutch Foreign Minister Maxime Verhagen said he had no objections to the project. "I am not against the Nord Stream line, but I am in favour of energy solidarity and energy security for all EU member states," Verhagen said.

Gazprom has said it is considering inviting Dutch firm Gasunie to join Nord Stream.

The pipeline is due to begin pumping 27.5 billion cubic metres of gas a year to Europe in 2010, with a second pipeline later doubling capacity to 55 bcm. It is estimated to cost at least 5 billion euros ($6.74 billion).

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Last updated:Wed Oct 3 13:43:52 2007