Russian gas giant buys 50% stake of South Stream

The pipeline, one of the world’s biggest infrastructure projects, aims to bolster Europe’s energy security by diversifying natural gas supply routes [PPIO]

Even as the EU remains split on deciding policy for the pipeline, Russian gas giant Gazprom on Tuesday approved the purchase from its Berlin-based subsidiary of 50 per cent of the shares of South Stream Transport. Gazprom Germania will sell 205,990 shares of Dutch-based South Stream Transport to the Russian energy giant, according to the resolution approved by the Gazprom Board of Directors.
South Stream Transport, an international joint venture of Gazprom, Italy’s ENI, France’s EDF and Germany’s Wintershall Holding, is in charge of building the undersea portion of the South Stream gas pipeline.
The 2,400-kilometre-long South Stream would cross the Black Sea to reach Bulgaria and other EU members beyond.
A contract to build the first of four marine lines for the project was signed with Italian company Saipem last month.
Russian and international oil and gas majors are cooperating as usual despite sanctions imposed over Ukraine, and Russia’s South Stream gas pipeline project is going ahead.

Russian Energy Minister Alexander Novak said last week the country is continuing work on the pipeline project, including holding consultations with Europe. The pipeline, one of the world’s biggest infrastructure projects, aims to bolster Europe’s energy security by diversifying natural gas supply routes.

South Stream is to cross the Black Sea to ship Russian gas to South and Central Europe. For the onshore sections, Russia has signed intergovernmental agreements with Bulgaria, Serbia, Hungary, Greece, Slovenia and Croatia.
The construction of South Stream began in 2012 near the Russian city of Anapa, with the first gas to pass through the pipeline in the first quarter of 2016, before becoming fully operational in 2018.
South Stream would require numerous regulatory approvals from the EU as well as the individual member states it would pass through.
Russia’s natural gas output will reach 812 billion cubic meters by 2035, topping the United States haul by four billion cubic meters, Russian energy experts said Monday.
The forecast by the Academy of Sciences’ Energy Research Institute together with a Russian government analyst center said the United States is expected to cut its shale gas production by 2040.

Source: Agencies