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South Stream’s offshore section layout |
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European gas market: Demand grows, domestic production declines, bcm |
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Blue Stream project success - an example of efficient cooperation between Gazprom and ENI
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Significance
The South Stream project is aimed at strengthening the European energy security. It is another real step toward executing the Gazprom strategy to diversify the Russian natural gas supply routes. The new gas pipeline system meeting the latest environmental and technological requirements will significantly raise the energy supply security of the entire European continent.
Route
The project provides for South Stream’s offshore section to run under the Black Sea from the Russian coast (Beregovaya compressor station) to the Bulgarian coast. The total length of the offshore section will be around 900 km, maximum depth – over two km and full capacity – 63 bcm. Two possible routes are under review for South Stream’s onshore section from Bulgaria– one, northwestwards and the other, southwestwards.
Environmental Compliance
When executing the project Gazprom and ENI will apply state-of-the-art technologies and comply with the strictest environmental requirements.
Project History
In November 2006 Gazprom and Eni entered into the Strategic Partnership Agreement providing Gazprom with the opportunity to directly supply Russian gas to the Italian market starting from 2007. Gas supply volumes will be gradually increased to 3 billion cubic meters per annum by 2010. Under the Agreement the existing contracts for Russian gas supplies to Italy have been extended till 2035.
On June 23, 2007, Gazprom and Eni concern inked the Memorandum of Understanding for the South Stream project implementation. The MoU sets the areas of cooperation between the two companies in designing, financing, constructing and managing the South Stream.
On September 6, 2007, Gazprom set up a Coordinating Committee for the South Stream project. On November 22, 2007, Gazprom and Eni signed a Supplement to the MoU for the South Stream project.
On January 18, 2008, South Stream AG, a special purpose company was registered in Switzerland. South Stream AG was incorporated by Gazprom and Eni on a parity basis.
On January 18, 2008, Russia and Bulgaria sign an inter-governmental agreement providing for Bulgaria’s participation in the South Stream project.
On January 25, 2008 the Umbrella Intergovernmental Agreement for the South Stream project and the Banatski Dvor UGS project was inked.
On February 25, 2008 Gazprom and Srbijagas signed the Agreement of Cooperation to implement a gas pipeline construction project for natural gas transit across the territory of the Republic of Serbia.
In February 2008 Russia and Hungary signed the Intergovernmental Agreement envisaging Hungary’s engagement into the South Stream gas transmission system project.
On April 29, 2008, Russia and Greece sign an agreement to construct the South Stream gas pipeline section in Greece.
On May 29, 2008, Gazprom’s expert analysis report pointed to the expediency of shifting to the investment substantiation stage. Based on the results of the investment feasibility a decision with regard to advancing to the investment stage will be taken.
On December 24, 2008, Gazprom and state-owned Srbijagas sign Principle Conditions of the Basic Cooperation Agreement for constructing the South Stream gas pipeline and natural gas transmission across Serbia, as well as a Memorandum of Understating for the cooperation in gas storage within the Banatski Dvor project.
On March 10, 2009, Gazprom and Hungarian Development Bank (MFB) sign a Basic Cooperation Agreement within the South Stream project implementation.
On May 15, 2009, Gazprom and Bulgarian Energy Holding sign Cooperation Agreement in the framework of South Stream project implementation.
On May 15, 2009, Gazprom and DESFA sign Basic Cooperation Agreement in the framework of South Stream project implementation.
On May 15, 2009, Gazprom and Srbijagas sign Basic Cooperation Agreement in the framework of South Stream project implementation.
On May 15, 2009, Gazprom and ENI sign 2nd Addendum to MoU on further actions as part of South Stream project.
Project Details
News Releases
May 15 2009
Gazprom and ENI sign 2nd Addendum to MoU on further actions as part of South Stream project
May 15 2009
Gazprom and DESFA sign Basic Cooperation Agreement in the framework of South Stream project implementation
April 28 2009
Gazprom and Bulgarian Energy Holding coordinate terms of cooperation within South Stream
April 24 2009
Gazprom delegation takes part in Summit on Natural Gas for Europe. Security and Partnership
April 6 2009
On working meeting of Alexey Miller, Paolo Scaroni and Fulvio Conti
April 2 2009
On working meeting between Alexey Miller and Paolo Scaroni
March 10 2009
Gazprom and MFB sign Cooperation Agreement within South Stream project
December 23 2008
Gazprom’s Board of Directors considers development status of South Stream gas transportation project
December 5 2008
Gazprom’s delegation visits Serbia
December 5 2008
Gazprom’s Management Committee considers development status of South Stream gas transportation project
October 27 2008
Gazprom’s delegation visits Slovenia and Greece
September 18 2008
Gazprom delegation visits Hungary
September 16 2008
Gazprom delegation visits Serbia
June 26 2008
Management Committee addresses South Stream implementation progress
January 18 2008
Gazprom and ENI set up special purpose entity to implement South Stream project
November 22 2007
Gazprom and ENI sign Supplement to Memorandum for South Stream project
September 6 2007
Coordinating Committee for South Stream project set up
June 23 2007
Gazprom and ENI sign memorandum of understanding for South Stream project