Russian Gas Pumped to England»

Russia?s gas giant Gazprom will complete preparatory work and make an investment decision for the construction of the North European natural gas pipeline in the fourth quarter of this year, Gazprom said. The business plan of the project is nearly complete and will be used for a feasibility study, a press release stated.

Linkleisters will be the legal consultant for the project, while Dresdner Bank and ABN Amro will act as financial consultants.

A tender is planned to choose an engineering consultant for the construction of the pipeline.

Gazprom initially proposed the project to create a new route for gas exports to Europe. Currently, the bulk of Russia?s gas exports to Europe go via Ukraine.

The 3,000 kilometer North European Pipeline, which will cost around U.S. $5.7 billion, is expected to pass through Russia?s Vologda and Leningrad Regions, along the Baltic Sea floor, across Germany and the Netherlands and along the North Sea floor to the U.K. The pipeline is also expected to have branches leading to Finland and Sweden.

The first gas supplies could start as early as 2007.

The pipeline's annual capacity is projected at 19-30 billion cubic meters by 2009.