South Stream construction starts in Serbia

Work has begun on the Serbian leg of Gazprom's South Stream gas pipeline. A worker welding a steel pipe in a field north of Belgrade marked the ceremonial start of construction. Serbian President Tomislav Nikolic, Serbian Prime Minister Ivica Dacic and Gazprom Chief Executive Officer Alexey Miller participated in the launch ceremony.

Nikolic said, "From today, we are connected by new energy, which has already connected Russia with the most powerful partners in Europe...Russian gas is the realisation of Serbia's energy dream, supply without uncertainty."

Potential benefits

Dalic said, "South Stream is the biggest investment in Serbia for decades...The value of work will be, just in Serbia, around €2 billion. We estimate that between 2000 and 3000 workers will be engaged in the work. And great economic benefit is expected after the end of the work – maybe €100 million per year for transit taxes."

Alexey Miller said, "Right after Bulgaria we started building South Stream in Serbia. The project is strategically important for the entire of Europe. The new trans-European gas transmission will eliminate the pressing problem of transit risks and secure uninterrupted Russian gas supplies to dozens of thousands of European consumers. South Stream will adjust the European energy map for the better, becoming an integral part of the EU’s energy security system.”

“The gas pipeline construction in Serbia will add considerable momentum to the development of the whole gas transmission system, turning the country into a large gas transit and storage centre of the European significance. South Stream will boost integration and economic processes in the region, attracting over 1.5 billion of direct investments to Serbia and creating more than 2.5 thousand jobs for the construction period.”

Serbian section

The Serbian section of the pipeline will stretch 450 km and cost approximately US$2.5 billion. Gazprom is expected to pay for all construction costs related to the Serbian section.

Alexey Miller said the project is a landmark in bilateral relations. “South Stream is a new, strong, page in Russian-Serbian co-operation, Russian-Serbian friendship,” he said. “The Serbian part of South Stream is crucial for this project.”

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/25112013/south_stream_construction_starts_in_serbia/