Gazprom set to divest stake in Interconnector pipeline

Gazprom’s board may consider disposing of its 10% stake in the UK-Belgium gas link operator, Interconnector UK Ltd.

The news was revealed in a regulatory filing on Monday. It didn’t clarify whether the sale would be to a Gazprom unit and the company’s press service declined to comment immediately on the planned deal.

Gazprom purchased its stake in the 235 km pipeline that can switch the direction of gas flows between terminals at Bacton in the UK and Zeebrugge in Belgium in December 1994.

Russia’s state-run exporter has been using the pipe to sell gas in the UK through its trading unit Gazprom Marketing & Trading Ltd.

Gazprom rents approximately 6 billion m³/yr (200 billion ft³/yr) of the pipeline’s capacity to the UK and 2 billion m³ in the opposite direction.

link has an annual capacity to Britain of 25.5 billion m³ and to Belgium of 20 billion m³. Britain used 66.7 m³ of gas last year and Belgium 14.7 billion m³, BP Plc data show.

Edited from various sources by Elizabeth Corner

Sources: Bloomberg, International Business Times

Read the article online at: https://www.worldpipelines.com/project-news/24112015/gazprom-set-to-divest-stake-in-interconnector-pipeline/