Gazprom will continue to build the South Stream pipeline as it was intended. The remaining regulatory issues related to European legislation can be solved in parallel with the construction, according to Gazprom.
Slovenian Ministry of Infrastructure and the area is estimated that Slovenian intergovernmental agreement is in line with EU legislation and is waiting a bilateral meeting in Brussels. Therefore they do not think yet about new negotiations with Russia. Franz Zimmermann from the Slovenian company Southern Stream says it’s too early to predict what alignment with the EU will bring.
“Regarding supply, South Stream is not important unless we could build gas power plants,” says Robert Golob from the company GEN-I, which usually buys gas at hubs in Central Europe.
Since consumption is reduced in Europe because of crisis, there is sufficient gas in the market. For the time being, in his opinion, the probability for the construction of South Stream is higher than for the construction of the Ionian-Adriatic pipeline which should bring Caspian gas through Croatia and Slovenia. However, while funding is not guaranteed, everything can change. Remember: The construction of the South Stream through Slovenia would cost a billion euros, out of which Slovenia would have to provide 700 million, which we do not have.
“Gazprom has intention that the South Stream ensures delivery on a specific time,” says Michael Tomsic, former Slovenian Minister of Energy.
It seems nothing special according to him, if it will be necessary to enter into a contract with Russia again, because the project is still at an early stage.
“South Stream is irrelevant for us because it doesn’t mean price cuts nor increases the stability of supply. Which are the alternatives? Nabucco is no longer present, but Trans Anatolian Pipeline (TAP) is actual from Azerbaijan through Turkey to Europe, and then the connection to the pipeline Transadriatic (TAP) via Greece and Albania to Italy. Contracts have already been signed, Norwegians support the project, mostly interested in Azerbaijani Socar with gas fields in the Caspian Sea. However, I think it would be best to build a gas terminal on the island Krk”, said Tomsic.
Source; Serbia Energy See desk
