Russia Oil and Gas, Sumitomo
The European companies will lose at least $ 3,095 billion due to Russia's decision not to implement the "South Stream" pipeline project, a press release of the South Stream Transport informs.
The most significant losses will be incurred by the Italian energy holding ENI, a subsidiary of which (Saipem) has been contracted to lay the pipeline for the amount of $ 2.476 billion.
It is worth noting that in April a contract for the construction of the second line of the offshore section of the pipeline was with the Swiss company Allseas Group was concluded. In addition, the German Europipe, which has been recognized as the supplier of 50% of the order for the supply of pipes for the first line of "South Stream", will be deprived of a contract for $ 619 million.
Russia has decidd to cancel the South Stream pipeline.
As "the Kommersant" predicted, Russia has abandoned the South Stream pipeline - one of its biggest projects, the geopolitical importance of which initially exceeds the economic. After the conflict in the Ukraine, the EU firmly blocked the project, and now instead of the South Stream "Gazprom" is going to lay a pipeline to Turkey to at least partially abandon the transit through the Ukraine and use more than $ 25 billion of the already implemented investments. However, the experts believe that it is better to completely abandon the project: Turkey can become a problem user for "Gazprom".
Russia could not build the South Stream pipeline with the opposition of the European Commission and the lack of resolution of the Bulgarian authorities and therefore rejected the project, Vladimir Putin stated yesterday during a visit to Turkey. Thus, as "the Kommersant" predicted on November 10th "Gazprom" abandons one of the most ambitious and expensive projects in its history, after eight years of negotiations, the preparatory work and endless disputes with the EU. Instead, as "the Kommersant" wrote on December 1st, "Gazprom" will lay the pipeline into Turkey with the same capacity that was assumed for the South Stream: 63 billion cubic meters.
Gazprom and the representatives of the Parliament of Japan have discussed the perspectives of growing the gas supply to Japan including on the account of the pipeline gas supply, Gazprom reports.
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