Gazprom looking for alternative pipeline routes to Europe

Gazprom announced that it is close to signing a letter of intent with Finnish Fortum Oy and two other German firms for the construction of a gas pipeline running under the Baltic sea from Russia to Germany, a deal that could be worth about $3 billion. The pipeline would serve as an alternative to the stretch of the Yamal gas pipeline that runs through Poland. The total cost of the investment, which would allow transporting roughly 20% of Russia's gas exports, is estimated at $20 billion. Finnish Prime Minister Paavo Lipponen said recently in Moscow that Finland has come to an agreement with Russia to support such an undertaking. The project, however, must receive approval of all Baltic states before being finalized. Gazprom exported 130 billion cubic meters of gas worth $11 billion in 2000, with forecasts that this figure will increase to 200 billion cubic meters, worth about $17 billion, by 2008. (Rzeczpospolita, p.B1) M.M.