French company EdF is joining the South Stream project, using its
shares in Italian Eni and plans to finish the process in late 2010, a
Gazprom statement says.
Chairman of the Board Alexey Miller had a meeting with the Chief
Manager of Eni Paolo Skaroni in Moscow on Friday. They discussed
prospects of cooperation in the oil and gas sphere.
Gazprom, Eni and EdF signed a trilateral memorandum on June 19, 2010,
which determines the steps needed to have the French company join the
South Stream AG.
Miller and Skaroni discussed cooperation between the companies in
realizing joint projects in Italy, Russia and other countries, RIA
Novosti reports.
Gazprom and Eni signed a memorandum on mutual understanding in
realizing the South Stream project on June 23, 2007. The memorandum
determines the projects, financing, construction and management of
South Stream. On May 15, 2009 they signed an additional agreement
increasing productivity of the sea section of the pipeline from 31 to
63 billion cubic m annually. South Stream AG was registered on January
18, 2008 in Switzerland.
In June, Miller said that Gazprom does not plan to reduce its share in
South Stream. He said that EdF will join the project in late 2010 with
a share of at least 10%. Eni will provide part of the sum.
South Stream is aimed at reducing Russia's dependency on transit
countries, in particular, Ukraine and Turkey, by building a pipeline
under the Black Sea to the Bulgarian port Varna. Then it will split
into two branches to Italy and Austria. Investment in the project is
25 billion euro. The gas pipeline is planned to be launched in 2015.
The pipeline will transport 35% of Russian gas to Europe.
Italy is the third largest Russian gas importer to Europe. In 2009
Gazprom supplied 19.1 billion cubic m of gas to Italy. In November
2006 Gazprom and Eni signed an agreement on a strategic partnership
which allowed Gazprom to provide direct gas supplies to Italy in 2007.
The gas supplies increased to 3 billion cubic m annually. The contract
was prolonged to 2035.
