INTRODUCTION: With six years of talks and negotiations finally completed, the 5,000 kilometre natural gas pipeline to carry Soviet gas from Siberia to consumers in western Europe, is being built.
CU PULL BACK Flags and delegates in "Mannesman" office in Moscow.
CU SIGN (Mannesman).
SVs Men talking at table. (2 shots)
CU PULL BACK Telex operator.
CU PULL BACK PAN Pipeline construction.
SV PAN Vehicles on construction site.
SV PULL BACK Vehicle lowering pipe.
SV Pipe being slotted into place PAN ALONG pipe already laid.
SV & GV Pipe being welded into place. (2 SHOTS)
CU PULL BACK Welded pipe ZOOM IN TO pipe. (2 SHOTS)
CU PULL BACK Pipeline being welded under tree.
GV ZOOM Vehicle arriving at site with pipe.
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Background: INTRODUCTION: With six years of talks and negotiations finally completed, the 5,000 kilometre natural gas pipeline to carry Soviet gas from Siberia to consumers in western Europe, is being built. A consortium of companies from Europe has been awarded vast orders for construction of the pipeline and compressor stations.
SYNOPSIS: The Mannesman office in Moscow was a hive of activity as employees began work on the development of Siberian natural gas resources. Mannesman, a west German company had originally formed a consortium with Creusot-Loire of France to bid for the work of building the needed compressor stations. The Soviet union, however changed their original plan for one pipeline to two, so the consortium disbanded, to re-form last February.
The United States has opposed the pipeline. Washington believes the supplies of gas would make the West Germans too dependent on the Soviets. The deal in the biggest trade pact ever between West Germany and the USSR. The pipelines, when completed, are expected to supply 40 billion tonnes of natural gas a year. Deliveries of large dismeter pipes have already begun.
Not only will large firms in West Germany benefit from the massive deal, but small sub-contracting firms will see their revenues leap. The Soviets have raised the competitive pressure on the bidders for contracts by pitting one country's bid against another.
There were three distinct stages in the negotiations for the pipeline: the technical talks which finished in August, overlapping with the financial talks. last of all came the final pricing. The Ministry of Gas in the Soviet union has risen in importance in the Soviet hierarchy as the deal has progressed.
Western Europe, having sent six million tonnes large-diameter pipes for the first stage of the pipeline, has received 45 billion cubic meter of natural gas in exchanges. Many countries, other than West Germany, have expressed interest in the gas, although its market price remains unresolved. The pipeline is expected to be operating by 1986.