Final investment decision has been made for offshore part of South Stream

The Board of Directors of South Stream Transport has made the final investment decision for offshore part of South Stream. They also decided to registry the company South Stream Transport B. V. in Amsterdam, Gazprom reports. The members of the Board of Directors, the representatives of Gazprom, Eni, EdF and BASF SE discussed the main issues of realization of South Stream project, and made the final investment decision on the offshore part. It will be built in accordance with the dates and on the terms admitted by the Board of Directors in the beginning of 2012.

The offshore division of South Stream will be laid via the Black Sea bottom from the Russkaya compressor station at the Russian coast to the coast of Bulgaria. Total length of the Black Sea division is over 900 km, and maximal depth is over 2 km. Projected annual capacity is 63 billion cubic m.

The shareholders agreement of South Stream Transport AG for realization of the offshore division was signed on September 16 2011. The shareholders are Gazprom with 50%, Eni with 20%, Wintershall with 15% and EdF with 15%. Entrance of foreign partners of Gazprom to the projected company South Stream Transport AG was completed on April 12 2012.

The Russian Premier,V Putin ordered Gazprom on December 30 2011 to intensify the realization of South Stream project and to start its construction in 2012. On January 20 2012 the Chairman of Gazprom Board , A. Miller decided on the comprehensive plan of measures giving the opportunity to start the construction of the offshore part of South Stream in December 2012.

The start of construction is planned for December 7. They will lay in the total 4 branches with capacity of 15.75 billion cubic m of gas each. The first supplies are planned for December 2015. Commerce supplies via the pipeline to Europe will start in Q1 2016, and total capacity of 63 billion cubic m will be achieved in 2018. Total cost of South Stream is €16 billion.

Translated by Nadezhda Poltoratskaya


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