South Stream – key element of European gas transmission infrastructure
Amsterdam hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Claudio Descalzi, Chief Operating Officer of Eni.
The meeting participants addressed the bilateral cooperation in the energy industry, placing an emphasis on Russian gas supplies to Italy.
The parties also discussed the cooperation within joint projects, in particular, such as the South Stream gas pipeline construction. It was mentioned that the project was progressing successfully. Upon commissioning, South Stream is expected to become a key element of the gas transmission infrastructure in Europe.
Italy is the third largest importer of Russian gas after Germany and Turkey. In 2013 the volume of Gazprom's supplies to Italy made up circa 25.3 billion cubic meters of gas.
Eni is a world leader of the petroleum industry operating in 85 countries. This Rome-based global integrated company is represented in oil and gas sectors, power generation and sales, petrochemistry, service and engineering support to oil fields.
In 2006 Gazprom and Eni signed the Strategic Partnership Agreement. Under the Agreement Gazprom started to supply up to 3 billion cubic meters of gas per year directly to Italian market, and was also enabled to acquire Eni's stakes abroad.
South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic meters to Southern and Central Europe for the purpose of diversifying the natural gas export routes and eliminating transit risks. The first gas will be supplied via South Stream in late 2015. The gas pipeline will reach its full capacity in 2018.
The South Stream Transport joint project company is responsible for constructing the offshore section of the South Stream gas pipeline. The company's shareholding is split among Gazprom (50 per cent), Italian Eni (20 per cent), German Wintershall and French EDF (15 per cent each).