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 toward executing the Gazprom strategy to diversify the Russian natural gas supply routes. The new gas pipeline system meeting the latest environmental and engineering requirements will significantly raise the energy supply security of the entire European continent.
Route
The project provides for the offshore South Stream pipeline 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 South Stream pipeline: either northwestwards or southwestwards from Bulgaria.
In order to feed the required amount of gas to South Stream the gas transmission system capacities in Russia are to be expanded with additional 2,300 kilometers of linepipe and 10 compressor stations with the total capacity of 1,473 MW. A pre-investment feasibility study is underway.
Environmental compliance
State-of-the-art technologies meeting the most stringent environmental requirements will be employed while executing the project. The environmental impact assessment will be held in full compliance with the Espoo Convention (1991).
Successful Blue Stream project exemplifies efficient cooperation between Gazprom and Eni
Project history
In November 2006 Gazprom and Eni entered into the Strategic Partnership Agreement providing Gazprom with the opportunity to directly supply Russian gas to the Italian market starting from 2007. Under the Agreement the existing contracts for Russian gas supplies to Italy were extended till 2035.
On 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.
On January 18, 2008 a special purpose entity, South Stream AG, was incorporated in Switzerland by Gazprom and Eni on a parity basis to build the offshore pipeline section.
During 2008–2010 intergovernmental agreements on the project implementation were signed with Austria, Bulgaria, Croatia, Greece, Hungary, Serbia and Slovenia.
Gazprom has signed bilateral agreements on cooperation in the field of project implementation with the authorized national companies: Serbian state-owned company Srbijagas, Hungarian Development Bank (MFB), Bulgarian Energy Holding EAD, Greek gas transmission system operator DESFA, Austrian OMV.
The following joint project companies were incorporated: South Stream Serbia AG (51 per cent owned by Gazprom, 49 per cent – by Srbijagas), South Stream Hungary Zrt. (on a par between Gazprom and Hungarian Development Bank MFB), South Stream Greece S.A. (on a par between Gazprom and DESFA) and South Stream Bulgaria AD (on a par between Gazprom and Bulgarian Energy Holding EAD) to implement the project in Serbia, Hungary, Greece and Bulgaria respectively.
On 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 by the end of 2010 through a reduction of Eni’s share in the joint project company. Meanwhile, the share of EDF will be not less than 10 per cent.
On October 1, 2010 Marcel Kramer was appointed Chairman of the Board and CEO of South Stream AG.