Gazprom Seeking Third Energy Package Exemption

Deputy head of Gazprom Export Alexey Golubnichiy has said that while it is seeking an exemption from the third energy package, it may come too late for the South Stream project.

Mr. Golubnichiy said that while the company was currently lobbying the European Union for the exemption, the time it would take to be granted is too long to be of use to the South Stream pipeline.

"We have a legal opportunity to do so. Commissioner Oettinger indicated the European Commission will look at the possibility of granting South Stream those exemptions," Mr. Golubnichiy told the RT news agency.

"The main problem is that giving us such exemptions will take from four to eight years. And this is too long for South Stream."

Gazprom has previously bucked against the third energy package, saying the limitations on transport capacity put on the company would mean it could not deliver contracted gas volumes.

"Should the third energy package be fully implemented in all European countries, we would not be able - even if we have gas - to supply gas in accordance with our long-term contracts with our partners, because they are now trying to take away from us the access to the transport capacity," Deputy CEO of Gazprom Alexander Medvedev said in February.

"These deliveries are carried out in connection with contracts entered into for a long time ago."

Gazprom is the major stakeholder in the South Stream project with a 50 per cent stake. Eni holds a 20 per cent stake in the project while Wintershall Holding and EDF hold a 15 per cent stake.