Nord Stream to Have Major Revenue Impact on Ukraine

Ukraine faces a significant loss of transit revenues resulting from the launch of the Nord Stream gas pipeline.

Ukrtransgaz, a subsidiary of state-owned Naftogaz Ukrayiny, which operates the pipelines across Ukraine which have been used to transit Russian gas estimates lost revenues of  $700 to $720 million for 2012.

The pipeline project recently completed laying its first gas pipeline with a designed annual capacity of 27 bcm in advance of  launching commercial operations in October 2o11.

Nord Stream consists of two 1,224 kilometre natural gas pipelines with an overall annual capacity of 55 billion cubic metres (bcm), that will deliver natural gas from Russia to Germany under the Baltic Sea.

Gazprom holds a 51 percent stake in the joint venture. BASF SE/Wintershall Holding GmbH and E.ON Ruhrgas each hold 15.5 percent, and Gasunie and GDF SUEZ each have a 9 percent share.