The Gazprom Management Committee took notice of the information relevant to the results of the Consolidated Feasibility Study on the South Stream project and its readiness for working out project documents.

Specialized structural units were tasked to proceed with the South Stream project as part of the Consolidated Feasibility Study and to elaborate the relevant project documents.

“South Stream has achieved a significant progress in meeting such challenges as the Consolidated Feasibility Study development as well as engagement of new partners in constructing the offshore gas pipeline section. The entire project is progressing in full compliance with the schedule and we are confident that South Stream will be commissioned on time,” said Alexey Miller.

Background

With a view to diversify the natural gas export routes Gazprom is implementing the project for constructing a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

On September 16, 2011 Gazprom, Eni, Wintershall Holding and EDF sighed the Shareholder Agreement for the offshore section of the South Stream project. Pursuant to the Agreement, the stakes in the South Stream project offshore section were distributed as follows: Gazprom – 50 per cent, Eni – 20 per cent, Wintershall Holding and EDF – 15 per cent each.

At present, the South Stream Consolidated Feasibility Study has been finalized including the feasibility study on the offshore section and feasibility studies on the respective gas pipelines in host countries of Southern and Central Europe.

The Consolidated Feasibility Study contains major process decisions including their feasibility rationale, environmental safety assessment and environmental measures, economic efficiency evaluation including capital and operating expenditures.

The Feasibility Study lays the foundation for the investment decision and further elaboration of project documents for the gas transmission facilities designed to supply Russian natural gas to Central and Southern Europe via the South Stream gas pipeline.