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Russian energy minister confirms plans to build Russia-Crimea pipeline

03rd April 2014

Russian media has reported ministers as confirming plans to build a gas pipeline to Crimea, with the intention of supplying three new power stations.

Crimea Pipeline Russia Gazprom South Stream Transport
Ministers suggest Gazprom could build gas pipeline to disputed region of Crimea

The natural gas pipeline could have a capacity of up to 2 billion cubic meters a year, energy minister Alexander Novak is reported to have said to Russian business newspaper, Kommersant.

An Energy Ministry spokeswoman confirmed Novak had made the comments to Kommersant.

Novak told the Kommersant that the three power stations supplied by the proposed pipeline could have a total capacity of 1,320 megawatts, and the cost could be up to RUB 100bn.

Novak also said Russian state gas company Gazprom would cover all the costs, a possible RUB 6bn, for the construction of the pipeline to Crimea, which has been annexed by Russia.

Gazprom could also take part in a tender on the privatization of local energy company Chernomorneftegaz.

Vedomosti, another Moscow-based business publication, quoted an unnamed energy ministry official as saying Gazprom could build a 400km pipeline from the southern Russian city of Krasnodar to Sevastopol with an annual capacity of 10 billion cubic meters.

Gazprom has yet to respond to the comments, and hasn’t said how this may affect the South Stream Transport undersea pipeline between Russia and Bulgaria that has already begun construction.

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