New partners from Germany and France have been signed up to the South Stream gas pipeline project, it has been announced.
Germany’s Wintershall Holding and France’s EDF have each acquired a 15 per cent stake in the offshore section of the South Stream project through a 30 per cent reduction of Italian Eni's stake.
South Stream is a project conceived by Russia’s Gazprom to construct a gas pipeline across the Black Sea to South European and Central European countries, for the purpose of diversifying natural gas export routes.
Intergovernmental agreements have already been signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.
The South Stream Consolidated Feasibility Study is now being finalised, which includes the feasibility study for the offshore section and feasibility studies for the respective gas pipelines in host countries within Southern and Central Europe.
As a result of the new deal, the shareholding structure of the South Stream project's offshore section sees Gazprom with a 50 per cent interest, Eni with 20 per cent, and Wintershall and EDF with 15 per cent each.
Commenting, Alexey Miller, chairman of Gazprom, said: “Two new shareholders from Germany and France have entered into South Stream. Accession of large energy companies to the project is a clear indication that the EU countries have acknowledged its relevance and necessity.
“No doubt, South Stream will not only create an additional route for safe and sustained Russian gas supplies to Europe, but also give a powerful impetus to the economic development of countries in Central and South Eastern Europe.”
