Events
Materials
May 25, 2011
Brussels South Stream Presentation
Brussels South Stream Presentation
November 13, 2010
South Stream is estimated to cost EUR 15.5 billion
October 15, 2010
June 19, 2010
Presentation
Significance
The South Stream project is aimed at strengthening the European energy security. It is another real step in pursuing the Gazprom strategy to diversify the Russian natural gas supply routes. The new gas pipeline system meeting the most recent environmental and engineering requirements will significantly raise the energy security throughout mainland Europe.
Route
The project stipulates for the offshore gas pipeline section to run under the Black Sea from the Russkaya compressor station on the Russian coast to the Bulgarian coast. The total length of the offshore section will be around 900 kilometers, the maximum depth – over two kilometers and the design capacity – 63 billion cubic meters. There are two optional routes for the onshore gas pipeline section: either northwestwards or southwestwards from Bulgaria.
In order to feed the required amount of gas to South Stream, Russia’s gas transmission system throughput will be increased through the construction of additional 2,446 kilometers of linepipe and 10 compressor stations with the total capacity of 1,473 MW. This project has been named South Corridor and will be implemented in two phases before December 2019.
Environmental compliance
State-of-the-art technologies meeting the most stringent environmental requirements will be employed while executing the project. The Environmental Impact Assessment (EIA) will be carried out in full compliance with the Espoo Convention (1991).
Project history
November 2006
Gazprom and Eni entered into the Strategic Partnership Agreement entitling Gazprom to supply Russian gas directly to the Italian market starting from 2007. Under the Agreement, the existing contracts for Russian gas supplies to Italy were extended to 2035.
Successful Blue Stream project exemplifies efficient cooperation between Gazprom and Eni
June 23, 2007
Gazprom and Eni inked the Memorandum of Understanding for the South Stream project implementation. The Memorandum sets out the areas of cooperation between the two companies in designing, financing, constructing and managing South Stream.
January 18, 2008
A special purpose vehicle, South Stream AG, was incorporated in Switzerland by Gazprom and Eni on a parity basis to build the offshore gas pipeline section.
2008–2010
Intergovernmental agreements on the project implementation were signed with Austria, Bulgaria, Croatia, Greece, Hungary, Serbia and Slovenia.
Gazprom signed bilateral agreements on cooperation within the project with the authorized national companies: Serbian Srbijagas, Hungarian Development Bank MFB, Bulgarian Energy Holding, Greek gas transmission system operator DESFA, and Austrian OMV.
The following joint project companies were incorporated: South Stream Serbia (51 per cent owned by Gazprom, 49 per cent – by Srbijagas), South Stream Hungary (Gazprom and Hungarian Development Bank MFB – 50 per cent each), South Stream Greece (Gazprom and DESFA – 50 per cent each) and South Stream Bulgaria (Gazprom and Bulgarian Energy Holding – 50 per cent each) to implement the project in Serbia, Hungary, Greece and Bulgaria respectively.
June 19, 2010
Gazprom, Eni and French energy company EDF entered into a trilateral Memorandum for EDF to join South Stream AG as a new shareholder.
October 1, 2010
Marcel Kramer was appointed Chairman of the Board and CEO of South Stream AG.
November 13, 2010
Gazprom and Bulgarian Energy Holding signed the Shareholders’ Agreement and the Articles of Association for the South Stream Bulgaria AD joint project company. South Stream Bulgaria AD will engage in implementing the pre-investment stage of the project as well as financing, constructing and operating the gas pipeline in Bulgaria.
November 16, 2010
The Cooperation Agreement for the period of the South Stream construction from 2010 to 2014 was inked between Gazprom and the Krasnodar Krai Administration. A unique compressor station is to be built in the Krai as part of the project. The station will pump gas 900 kilometers away from the shore via the deep-water pipeline.
March 21, 2011
Gazprom and Wintershall signed a Memorandum of Understanding on the South Stream project, providing for participation of Wintershall Holding in constructing the offshore gas pipeline section. The Memorandum also stipulates conclusion of new long-term contracts for natural gas supply to the joint venture company Wintershall Erdgas Handelshaus Zug (WIEE).
March 22, 2011
Gazprom and Geoplin Plinovodi entered into the Shareholders’ Agreement of South Stream Slovenia LLC, a joint project company being set up on a parity basis to implement the South Stream project in Slovenia.
September 16, 2011
A Shareholders’ Agreement for the offshore section of the South Stream project was signed. Pursuant to the Agreement, German Wintershall Holding and French EDF each acquired a 15 per cent stake in the offshore section of the South Stream project through a 30 per cent reduction of Eni's stake.
As a result, the shareholding structure in the South Stream offshore section is as follows: Gazprom – 50 per cent, Eni – 20 per cent, Wintershall Holding and EDF – 15 per cent each.
Henri Proglio (EDF), Harald Schwager (BASF), Vladimir Putin, Alexey Miller and Paolo Scaroni (Eni)
3Q 2011
The Consolidated Feasibility Study of South Stream was finalized and included the feasibility study of the offshore section and feasibility studies of the respective gas pipelines in the host countries of Southern and Central Europe.
November 21, 2011
South Stream’s first facility – Banatski Dvor underground gas storage – was commissioned in Serbia. The underground gas storage facility is one of the largest in Southeastern Europe.
December 28, 2011
Turkey granted a permit for the South Stream gas pipeline construction via its exclusive economic zone.
2011–2012
Montenegro and the Republika Srpska indicated their willingness to take part in the project. A decision was taken to elaborate the feasibility study for gas laterals construction to these countries.
January 2012
Pursuant to the assignment by Vladimir Putin, Prime Minister of the Russian Federation, a detailed action plan was approved to speed up South Stream and to launch the gas pipeline construction in December 2012 instead of 2013.
The final investment decision on South Stream would be made in November 2012.
February 2012
Gazprom and Plinovodi signed a Supplementary Agreement to the South Stream Slovenia LLC Shareholders’ Agreement. The document defines the layout and parameters of the gas pipeline section in Slovenia.