South Stream pipeline to cost $20 billion
30 July 2008
The South Stream gas pipeline that will pass under the Black Sea to Bulgaria and then split into two onshore routes -- to Italy and central Europe -- is expec ted to rival the US and EU controlled Nabucco pipeline to southern Europe and cost up to $20 billion.
South Stream pipeline to cost $20 billion
"The Governments of the countries involved or potentially interested in the South Stream project are to build an efficient system of agreements supporting the initiative of the Italian and Russian companies. This is a prime example of a situation where the objectives of an industrial project overlap with the interests of the governments and populations of several European countries", Viktor Khristenko, the Minister of Industry and Energy of the Russian Federation, commented.
Gazprom Deputy Chairman, Alexander Medvedev, said that the pipeline will " diversify Russian gas supply routes towards European countries and significantly contribute to Europe's energy security".
According to preliminary studies carried out by Saipem in 2007, costs are comparable with the development of the LNG chain. However, it is currently believed by Khristenko that the South Stream pipeline will now cost $20 billion, double the $10 billion Gazprom originally claimed.
The US and EU controlled Nabucco pipeline to southern Europe was aiming to divert energy sources away from Russia.
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