BP Explores Nord Stream Extension To UK

January 2013, Vol. 240 No. 1

BP PLC is reportedly in talks with the OAO Gazprom-led Nord Stream pipeline consortium that ships Russian natural gas into Europe, over an extension of the link to carry the gas straight into the UK.

According to a Rigzone report, BP has long been interested in the pipeline extension but has been unable to strike a deal due to a provision in the shareholder agreement with its partners in the Russian TNK-BP Holding joint venture, which said the company could only explore opportunities in Russia through TNK-BP.

Nord Stream consists of two 1,224-km pipelines that connect Russia’s gas reserves with markets in Europe. BP would be interested in extending the pipeline from Germany into the UK. A British newspaper report indicated the pipeline could be delivering gas into the UK by 2016.