Thursday, October 23, 2014

2030 Energy Security | Brussels | Dec 10th
Drew EGC Report

Pravda: Is South Stream too hard to handle for Gazprom?

The South Stream pipeline will be built via Bulgaria, ending in the north of Italy. The Russian gas giant has managed to obtain the consent of all the countries, through the territories of which the pipeline is going to be built. The construction may begin as early as in December of this year. Experts point out that the financial requirements of the project may undermine Gazprom's financial situation.

Bulgaria was the last to join the project. Last week, the head of Gazprom, Alexey Miller, and Bulgarian Energy Holding CEO, Michael Andonov, in the presence of Prime Minister Boyko Borisov, signed the final investment agreement. The document has approved the construction of the Bulgarian section of South Stream gas pipeline.

The route of the pipeline has thus been finalized. The output from the Black Sea is planned for Bulgaria, then it is Serbia that serves as a manager for former Yugoslav republics of Bosnia and Herzegovina and also Croatia, where auxiliary branches of the pipeline will be built. Next on the route are Hungary and Slovenia. Italy will be the end point.

Just a day before, Russia and Slovenia also arranged the final investment agreement. According to the head of Gazprom Alexey Miller, the volume of investment in the construction of the pipeline in Slovenia is estimated at $1 billion. It was earlier assumed that the final point of the South Stream project could be Austria. However, the pipeline will go through Italy, where it will reach the northern town of Tarvisio.  MORE

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