Gazprom Inks Separate Deals with Gasunie and Shell

Gazprom, the world’s biggest natural gas producer, has signed a letter of intent with Gasunie of the Netherlands in order to explore potential expansion of the Nord Stream pipeline to Britain, according to Reuters. 

Also signed were two major agreements between Gazprom, along with subsidiary Gazprom Neft, and energy major Shell. One for joint shale oil exploration and drilling and another for joint exploration and drilling of hydrocarbons on Russia's continental shelf. According to the Financial Times the deal will include a project to develop parts of the Bazhenov shale, a formation in western Siberia that is one of the largest accumulations of unconventional oil in the world.

President Vladimir Putin of Russia is leading a high-powered Russian business delegation this week in the Netherlands including Gazprom chief executive Alexey Miller and Gazprom Neft chief Alexander Dyukov.

Should the Gazprom/Gasunie project be a success, a Nord Stream extension would give the Russian gas monolith greater access to Britain as well as provide relief for the Netherlands as its gas reserves diminish. 

Alexey Miller said the capacity of the new pipeline would be approximately 27.5 bcm.  Addressing reporters in Amsterdam Miller stated "The key issue is to sign a long-term contract with our British partners to supply gas to the British market."

The Dutch Minister of Economic Affairs Henk Kamp said during the visit that “strong Russian-Dutch energy relations are of great importance to both our economies… we value them even more today, as they stimulate economic growth and enhance energy security."