Gazprom signs final South Stream pipeline deal with Slovenia

In a recent statement, Russian energy giant Gazprom confirmed a final deal has been signed with Slovenia to build the Slovenian stretch of the South Stream gas pipeline.

The deal, which is similar to previously signed deals with Hungary and Serbia, was signed by Gazprom CEO Alexei Miller and Slovenia’s Plinovodi d.o.o. General Director Marjan Eberlinc in the presence of Russian Prime Minister Dmitry Medvedev.

The South Stream pipeline will transport up to 63 billion m³ of natural gas to central and southern Europe along the Black Sea seabed. The pipeline’s route means Russia is diversifying away from transit countries such as Ukraine.

Following Russian President Vladimir Putin’s instruction, Gazprom has accelerated the South Stream pipeline's construction schedule, with work now to begin before the end of 2012.

It is expected that the pipeline will commence commercial deliveries of natural gas to Europe in Q1, 2016. Its designed capacity of 63 billion m³ will then be reached in 2018. The project’s overall price tag, including the pipeline’s overland sections, is estimated at US$ 16 billion.

Edited from various sources by Cecilia Rehn.

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