Stroytransgaz quit the South Stream gas pipeline project in Bulgaria, said Gennady Timchenko, a Russian businessman and the main shareholder of Stroytransgaz. "We had won a tender, hoped to make an adequate contribution to the common cause, but you see, Mr. McCain visited Bulgaria and persuaded the local authorities to reject our services. We quit the project to prevent its failure. Stroytransgaz was planned to build the first ground section 500km long in Bulgaria. Now we will be replaced by a Gazprom-owned company Centrogaz… Although Stroytransgaz was taking part in major international projects, we were building the Nord Stream section between Germany and the Czech Republic, building pipelines in Arab countries…” said the businessman.
The Stroytransgaz Consortium, with Russia’s Strontransgaz and Bulgaria’s Gazproekt Jug AD, won the tender in May for designing, shipment of equipment and materials, construction, personnel training and launch of the South Stream gas pipeline in Bulgaria. 11 companies from Austria, Belgium, Bulgaria, Germany, India, Italy, Russia, Switzerland and Japan took part in the tender that started in December 2013.
South Stream will directly connect Russia with consumers in Central and Southern Europe, bypassing Ukraine. In the context of the Ukrainian crisis, the European parliament passed a resolution on April 17, urging countries to refrain from building South Stream. Despite the resolution, countries participating in the project, including Bulgaria, Austria, Turkey, Italy and Macedonia expressed support for the project. There are fears that the EU will put even more pressure on the project due to a new round of sanctions passed against Russia.
Vladimir Chizhov, the Russian permanent representative to the European Union, an extraordinary and plenipotentiary ambassador, believes that Russia will remain the main energy supplier of Europe for a long time: “South Stream is being built according to schedule. The bilateral intergovernmental agreements signed with all participating states of the project, including all the countries through whose territories South Stream will run, have been in force. The European Commission had questions for Bulgaria about the tender conditions for contractor works. But this is a different story, it is considered in a different procedure.”
Chizhov said that he predicted no obstacles for realization of the project: “The gas sector has not been affected by a single word in the context of the current sanctions. Maybe every country dreams of becoming independent from imports of energy carriers. Not everyone can achieve that. If we take the European Union, only Denmark and the UK out of 28 countries are in a happy position. Others import energy carriers. From where? Russia is the largest supplier but clearly not the only one. Norway is starting to gradually reduce production of oil and gas due to depletion of reserves in the North Sea. Algeria sends supplies but they are limited. In the near future there is no replacement for Russian gas on the market of the European Union.”
Chizhov noted that the world had a tendency to reduce energy consumption, and Russia and the EU were actively cooperating on this issue: “The strategy of the European Union is focused on reduction of dependence on hydrocarbons. Maybe in the long run, it could be a strategy of the world community, because no matter how many oil and gas reserves there are on the planet, they will be depleted sooner or later. It will not happen during our lifetime, I am sure. But it would do no harm to think about energy efficiency now. I must say that the topic of energy efficiency within the framework of the energy dialogue between Russia and the European Union is one of the most intensively and productively discussed. Yes, the European Union does a lot to improve energy efficiency. Russia has corresponding programs and we exchange experience.”
Nonetheless, the expert is steadfast that “in the near future, there is no replacement for Russian gas. Speaking of American shale gas, it is a different story. How much would it cost and where would it be sold, when would it be sold? It is not sold anywhere. Current American legislation allows exports of energy carriers only to Canada. Comparing prices for gas in Europe and Asia, it turns out that importing the viscous gas to Europe would only harm American exporters, because they could get 1.5 times more money from Asia for it.”
Stroytransgaz quits project to prevent failureStroytransgaz quit the South Stream gas pipeline project in Bulgaria, said Gennady Timchenko, a Russian businessman and the main shareholder of Stroytransgaz.‘We had won a tender, hoped to make an adequate contribution to the common cause, but you see, Mr. McCain visited Bulgaria and persuaded the local authorities to reject our services. We quit the project to prevent its failure. Stroytransgaz was planned to build the first ground section 500km long in Bulgaria. Now we will be replaced by a Gazprom-owned company Centrogaz… Although Stroytransgaz was taking part in major international projects, we were building the Nord Stream section between Germany and the Czech Republic, building pipelines in Arab countries…” said the businessman.The Stroytransgaz Consortium, with Russia’s Strontransgaz and Bulgaria’s Gazproekt Jug AD, won the tender in May for designing, shipment of equipment and materials, construction, personnel training and launch of the South Stream gas pipeline in Bulgaria. 11 companies from Austria, Belgium, Bulgaria, Germany, India, Italy, Russia, Switzerland and Japan took part in the tender that started in December 2013.South Stream will directly connect Russia with consumers in Central and Southern Europe, bypassing Ukraine. In the context of the Ukrainian crisis, the European parliament passed a resolution on April 17, urging countries to refrain from building South Stream. Despite the resolution, countries participating in the project, including Bulgaria, Austria, Turkey, Italy and Macedonia expressed support for the project. There are fears that the EU will put even more pressure on the project due to a new round of sanctions passed against Russia.Vladimir Chizhov, the Russian permanent representative to the European Union, an extraordinary and plenipotentiary ambassador, believes that Russia will remain the main energy supplier of Europe for a long time: “South Stream is being built according to schedule. The bilateral intergovernmental agreements signed with all participating states of the project, including all the countries through whose territories South Stream will run, have been in force. The European Commission had questions for Bulgaria about the tender conditions for contractor works. But this is a different story, it is considered in a different procedure.”Chizhov said that he predicted no obstacles for realization of the project: “The gas sector has not been affected by a single word in the context of the current sanctions. Maybe every country dreams of becoming independent from imports of energy carriers. Not everyone can achieve that. If we take the European Union, only Denmark and the UK out of 28 countries are in a happy position. Others import energy carriers. From where? Russia is the largest supplier but clearly not the only one. Norway is starting to gradually reduce production of oil and gas due to depletion of reserves in the North Sea. Algeria sends supplies but they are limited. In the near future there is no replacement for Russian gas on the market of the European Union.”Chizhov noted that the world had a tendency to reduce energy consumption, and Russia and the EU were actively cooperating on this issue: “The strategy of the European Union is focused on reduction of dependence on hydrocarbons. Maybe in the long run, it could be a strategy of the world community, because no matter how many oil and gas reserves there are on the planet, they will be depleted sooner or later. It will not happen during our lifetime, I am sure. But it would do no harm to think about energy efficiency now. I must say that the topic of energy efficiency within the framework of the energy dialogue between Russia and the European Union is one of the most intensively and productively discussed. Yes, the European Union does a lot to improve energy efficiency. Russia has corresponding programs and we exchange experience.”Nonetheless, the expert is steadfast that “in the near future, there is no replacement for Russian gas. Speaking of American shale gas, it is a different story. How much would it cost and where would it be sold, when would it be sold? It is not sold anywhere. Current American legislation allows exports of energy carriers only to Canada. Comparing prices for gas in Europe and Asia, it turns out that importing the viscous gas to Europe would only harm American exporters, because they could get 1.5 times more money from Asia for i
