UPDATE: Peskov: Launch of N Stream-2 pipeline to balance EU’s gas market

(Adds details on start of supplies in paragraphs 4–6)

MOSCOW, Sep 15 (PRIME) -- The upcoming launch of the Nord Stream-2 natural gas pipeline will balance gas prices on the European market, Russian presidential spokesman Dmitry Peskov said on Wednesday.

“There is no doubt that the fastest possible launch of the Nord Stream-2 will contribute significantly in balancing of the natural gas price parameters in Europe, including the spot market… The need for gas is high, and, besides, we do not understand how cold the winter will be,” he said.

Earlier in September, Russian gas giant Gazprom said construction of the facility had be fully completed.

Gazprom CEO Alexei Miller told reporters on Wednesday that the supplies via the pipeline will not begin from October 1, denying a previous report by Bloomberg.

“No, the supplies will not begin on October 1,” Miller said.

Earlier in September, Bloomberg reported that Gazprom wanted to start supplying gas through the first line of the Nord Stream-2 to Germany on October 1.

Peskov said that Russia has nothing to do with a rise of gas futures in Europe, because the spot prices do not influence the prices for pipeline gas supplies from Russia.

“The processes have nothing to do with Russia, and the spot prices do not influence the prices for pipeline gas. Receivers of pipeline gas in Europe are not exposed to the high volatility, because those prices are calculated using another formula,” he said.

According to the ICE Futures trading data, the price for gas on the European market has added over 20% on Wednesday to hit another record high of U.S. $950 per 1,000 cubic meters.

Peskvo also said that the Kremlin has not yet made a decision concerning gas exports by oil major Rosneft.

Deputy Prime Minister Alexander Novak said earlier on Wednesday that the Energy Ministry will soon send to the government a report outlining its position on granting to Rosneft a permit for gas exports via the Nord Stream-2 pipeline.

The Nord Stream-2 project envisages construction of two lines of a natural gas pipeline with an annual capacity of up to 55 billion cubic meters, running from the Russian shore to Germany under the Baltic Sea. Russian gas giant Gazprom is implementing the project together with Germany’s E.ON and BASF, Royal Dutch Shell, Austria’s OMV, and France’s Engie. The project is strongly opposed by the U.S. and several European states.

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