Bloomberg.com
Russia, Netherlands Discuss Serious Energy Plans
By Lyubov Pronina and Torrey Clark
June 20 (Bloomberg) — Russia and the Netherlands have serious plans to extend energy projects and enhance European fuel security as Royal Dutch Shell Plc seeks a role in the gas-rich Yamal region, President Dmitry Medvedev said.
We can advance on Yamal projects, Medvedev told reporters today in Amsterdam, after meeting with Dutch Prime Minister Jan Peter Balkenende. Medvedev also met with Shell Chief Executive Officer Jeroen van der Veer, praising the companys Sakhalin-2 project with OAO Gazprom for producing Russias first liquefied natural gas this year.
Russia expects 20 percent of its natural-gas output to come from the Arctic Yamal Peninsula and the surrounding Kara Sea by 2020, Russias First Deputy Prime Minister Viktor Zubkov said after meeting Van der Veer yesterday. Gazprom may work with Shell to build an LNG plant in Yamal, Chief Executive Alexei Miller said earlier this year.
LNG is natural gas cooled to a liquid for shipment by tanker to markets unreachable by pipeline.
Medvedev called Dutch support for Gazproms Nord Stream gas pipeline, which will link Russia link directly to Germany, a positive example of cooperation with European partners without any fear.
Nord Stream
Gasunie, the Dutch state-owned gas distribution company, holds 9 percent in the Nord Stream AG venture that aims to bring the pipeline online in 2011.
Gazprom, the worlds biggest natural gas supplier, has said Nord Stream will boost European energy security after price disputes with transit country Ukraine disrupted deliveries three times since the start of 2006. European leaders have argued for diversifying supplies away from Russia.
We can do more, Balkenende said today. Dutch companies want to extend cooperation with Russia in biotechnology, IT and telecommunications, as well as energy projects, he said.
The Netherlands was Russias second-largest trading partner last year, with a total volume of about $62 billion, while Dutch investment in Russia reached $45.2 billion, or 18 percent of total foreign investment, the Kremlin said yesterday.
During the first day of Medvedevs visit to Amsterdam yesterday, OAO Lukoil, the Russian oil producer with the most international assets, announced an agreement to buy 45 percent of Dutch refinery TRN from Frances Total SA for about $725 million.
To contact the reporter on this story: Lyubov Pronina in Moscow at[email protected]; Torrey Clark in Moscow at[email protected].
Last Updated: June 20, 2009 11:12 EDT
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