Estimated to cost around 16 billion euros, the South Stream pipeline will be jointly funded by Gazprom, Italy’s Eni, France’s EDF and a unit of Germany’s BASP, with the former expected to fund half of the capital expenditure.
Due to start operating in 2015, the pipeline will travel under the Black Sea via the Balkans, bringing up to 63 billion cubic metres of gas annually. Upon completion the pipeline will reach Bulgaria, Serbia, Hungary, Slovenia, Austria and Italy in one leg, while a second will reach Croatia and Greece.
"South Stream's contribution to providing Europe with energy security is very significant.” Gazprom's chief executive Alexei Miller said. “It allows us to create alternative and secure natural gas supply routes to our consumers.”
