Announcements of European Commissioner on South Stream are groundless

The announcements of the European Commissioner, G. Ettinger that South Stream causes problems in the realization of the Southern Corridor on gas supply from Central Asia to Europe by passing Russia are groundless and contradict the earlier position, the deputy chairman of Gazprom A. Medvedev told the Prime agency. Southern Corridor suggests gas supply from Turkmenia to Azerbaijan and then via Turkey by the Trans-Caspian gas pipeline and also the construction of the Nabucco gas pipeline. Mr. Ettinger said that if Russia thinks that South Stream or political pressure on Ashkhabad and Baku make Europe rule out the Trans-Caspian gas pipeline and Nabucco, he will trust less in the long-term gas contracts and not believe that gas is not a political tool. It is an absolutely groundless announcement without any logic, as South Stream and Nabucco are not competing projects as they have different goals. We diversify routes by the signed contracts, for that purpose there are gas, market, contracts, partners who signed the shareholder agreement today. The next step is the final investment decision on the basis of the project that will be prepared by the end of the year – first half of 2012, Mr. Medvedev said. He said that according to the schedule all the project works by the Southern Corridor are to be completed by the end of 2012. Nabucco has another goal – to diversity sources of supply. We are not happy to see that the sources of supply haven’t been determined as yet as the need of Europe in gas is high and there will anyway be a deficit. This announcement is not clear as at the conference he spoke about giving the same status to South Stream as Nabucco as Europe needs these projects, the deputy chairman of Gazprom said. He said that the technical and economic assessment of the South Stream is ready. Mr. Medvedev confirmed that it is planned to spend $10 bln for the offshore part, $5.5 bln – for the land part. These expenses, according to him, can’t rise significantly, +/- 15%. Europe imports about 80% of the consumed oil and 60% of consumed gas.

The European Commission tries to cut the dependence of Europe of the largest energy suppliers and also diversify this dependence by the types of fuel. Gazprom, Eni, EDF and Wintershall on Friday signed a shareholder agreement of the company South Stream Transport for the realization of the South Stream gas pipeline construction project that is supposed to be laid from Russia to Europe via the bottom of the Black Sea. South Stream presupposes the construction of the gas pipeline via the water area of the Black Sea from Russia to the countries of Southern and Central Europe. The gas pipeline is planned to have 4 branches 15.57 bln cubic meters each; the first line is to be put into operation in December 2015; reaching full capacity (63 bln cubic meters) – in 2018. The start of the construction is planned for 2013. The approximate cost of the South Stream gas pipeline is €15.5 bln, 10 bln of which is meant for the offshore part, 5.5 bln – for land part. For the realization of the land part of the project the intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria. At the present moment the development of the technical and economic assessment of South Stream has been completed – it comprises the TEA of the offshore part, as well as the TEA of the national sites of the gas pipeline on the territory of the countries of Southern and Central Europe. http://www.oilru.com/news/278028/ Translated by Galiya Musabekova