South Stream gas pipeline and its SEE regional importance

, SEE Energy News

“South Stream” is a significant investment in reliable supplies of clean energy and the European economy, say representatives of the project. It will be new energy exclusively for Europe in every sense of the word, says the head of “South Stream” project.

The project “South Stream” has been preparing since 2007. Start of construction of is a historic event for “Gazprom”, because it is the first pipeline that will connect Russian sources of gas directly to the European consumers. Gas pipelines will bring many benefits to countries along the route, but they will also strengthen economic cooperation in the region of Southeast Europe.

Anapa, Black sea coast is the place where the greatest natural gas compressor station in Europe for “South Stream” pipeline is built. White tent set up for the ceremony of the start of construction and the flags of all the countries on the route of the pipeline and the European Union will remain there. Serbian flag was hung first because after the Russians our country is the first to start with the construction.

“I sincerely hope that the construction of the South Stream would last like the construction of the North Stream which is three – four years. Iwould be a huge thing for us” said Zorana Mihajlovic, Minister of Energy, Development and Environment.

Welding of the first pipes was very festive and the Russians did not hide their pleasure as the construction begins.

“Gazprom” has brought together all partners in joint ventures and investors. They made agreements on further work in this joint venture.

“We met with Serbian partners with whom we have a good cooperation. We need to determine the points where the pipeline will cross the border, “said Csaba Baji, CEO of the Electric Power Industry of Hungary.

“The directors of all companies participating in the project South Stream had meetings and discussions which were attended by bankers who intend to follow the funding of the pipeline,” said Dusan Bajatovic, Director General of “Srbijagas”.

In “Gazprom” they say that “South Stream” strengthens the position not only of the company, but the whole of Russia as it solves several issues: it will replace and increase gas supply routes to Europe, eliminate transit risks and directly connect Russia with the European Union.

“In times of economic uncertainty, South Stream is a significant investment in reliable supplies of clean energy and the European economy. It will be new energy exclusively for Europe in every sense of the word” says Marcel Kramer, director of the project “South Stream – transport”.

Forecast of the International Energy Agency shows that in the coming decades, Europe would increase gas consumption by a third.

Maria van der Hoven, executive director of the International Energy Agency says that Russia has gas reserves for many centuries, and it has the money and infrastructure.

“Investments in major infrastructure projects are very bold and very welcome,” said Maria van der Hoven.

Stable investment capital of Russia and European companies is behind this investment. “Gazprom” has a 50 percent stake, Italian ENI has 20 percent, French EDF and German “Vintenstal” each have a share of 15 percent.

The EU expects that the new pipeline would still allow competition and push gas prices.

Source Serbia Energy Magazine