South Stream to launch in Austria in late 2016

Today in Vienna, as part of Russian President Vladimir Putin's visit to Austria, Alexey Miller, Chairman of Gazprom's Management Committee and Gerhard Roiss, Chief Executive Officer of OMV, signed a Shareholders' Agreement for South Stream Austria GmbH.

The agreement envisages parties' co-operation to construct the Austrian section of South Stream gas pipeline with the annual capacity of 30 - 32 billion m³ running from the Hungarian border to the end point in Baumgarten.

As part of the signed agreement, the final investment decision based on agreed criteria was taken on the pipeline construction in Austria. Also, a Plan of Activities for 2014-2016 was signed.

Parties expect all construction permits to be obtained until late 2015. South Stream is planned to be commissioned in Austria in late 2016.

"South Stream is being supported by major European energy companies. The agreement with OMV marks an important step to establish this new Trans-European gas transmission route. As early as next year South Stream will offer additional guarantees of reliability and flexibility of Russian gas supplies to European markets," said Alexey Miller.

"Today's agreement advances the partnership, which lasted for about 50 years to the next level. Within the South Stream project, Gazprom and OMV are safeguarding the security of supplies for Europe and, particularly, for Austria. This contract cements the role of Baumgarten as a key European gas hub in Europe, said Gerhard Roiss.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/24062014/south_stream_to_launch_in_austria_in_late_2016/