GAZPROM / SOUTH STREAM

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 – 30 bcm. The submerged section is planned for commissioning in 2013. 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
On June 23, 2007, Gazprom and ENI signed a Memorandum of Understanding to execute the South Stream project

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, the South Stream AG Special Purpose Entity was registered. The venture was established by Gazprom and ENI on a parity basis.