Eni expects the investment decision about South Stream at the end of 2012 – beginning of 2013

The Italian oil and gas company Eni expects the final investment decision about the project of the building of the South Stream gas pipeline either at the end of 2012 or in the beginning of 2013, Reuters reports with reference to the statement of the Head of Eni, Paolo Scaroni.

“All four partners are working to make the final investment decision either at the end of December or in the beginning of 2013”, Scaroni said.

The building of South Stream will start from Russian coast of the Black Sea in Krasnodar Territory near Anapa. The route will pass through the water area of the Black Sea, approach the exclusive economic zone of Turkey and come out at Bulgarian coast near Varna. Then Russian gas will go through the territory of Bulgaria, Serbia, Hungary and Slovenia to the north of Italy to the Tarvisio settlement. Gas pipeline branches will be built to Greece, Croatia and  Srpska in Bosnia-Herzegovina.

South Stream will help to diversify the routes of delivery of natural gas to European consumers. In Q3, 2011,the development of the consolidated feasibility study of South Stream, which united the feasibility study of the sea sector and the feasibility study of the sectors passing along the territories of Southern and Central European countries, was completed.

The approximate cost of South Stream makes up 15.5 billion euros (sea sector - 10 billion, land sector – 5.5 billion). The total designated capacity of South Stream makes up 63 billion cubic metres at four branches. The building will start in December 2012.

In February Gazprom reported, the final investment decision about South Stream would be made in November 2012.

The shares of South Stream Transport AG (the company operating the sea sector of South Stream) belong to Gazprom (50%), Eni (20%), Wintershall (15%) and EdF (15%).

 

Source: http://www.mineral.ru/News/49367.html

Translated by Alexandra Utyasheva 

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