Final investment decision adopted for offshore section of South Stream gas pipelineNews // November 30, 2012
Milan in Italy recently hosted a meeting of the South Stream Transport Board of Directors at which a final investment decision was taken for the offshore section of the proposed South Stream gas pipeline.
The Board of Directors, which includes representatives from Gazprom, Eni, EDF and BASF, discussed the key issues of the South Stream project and adopted the final investment decision for the offshore gas pipeline section.
“The South Stream project makes a great contribution to ensuring the European energy security. It allows creating alternative and reliable routes of natural gas supply to our consumers. Let me congratulate everyone on the decision made today by the Board of Directors. It marks the start of the South Stream project realization,” said a spokesperson for the project.
The meeting also approved incorporation of South Stream Transport BV in Amsterdam, The Netherlands.
It was highlighted that the offshore section of South Stream would be built in line with the terms and conditions approved by the Board of Directors in early 2012.
Gazprom is constructing a gas pipeline across the Black Sea to Southern and Central Europe – the South Stream project.
The offshore section of the South Stream gas pipeline will run under the Black Sea from the Russkaya compressor station to the Bulgarian coast. The total length of the Black Sea section will exceed 900km, its maximum depth will be more than 2km, and its design capacity 63 billion cubic metres.
In September a shareholders agreement for South Stream Transport AG was signed for implementation of the offshore section. According to the document, Gazprom holds a 50 per cent stake in the project, Italian Eni – a 20 per cent stake, German Wintershall Holding and French EDF – 15 per cent stakes each.