The parameters of the South Stream gas project do not depend from a possible merger of Gazprom and Naftogaz Ukrainy, this issue will depend from the results of a feasibility study, Energy Minister Sergei Shmatko, who is accompanying Russian President Dmitry Medvedev in his ongoing visit in Syria, told reporters on Tuesday.
He noted that the South Stream project and a possible merger of Gazprom and Naftogaz are not connected with each other. “South Stream is absolutely a matter of principle for us, the strategic transition to direct supplies for European consumers,” the minister said. According to him, the South Stream parameters were discussed with the countries involved in the major gas project.
Shmatko noted that a feasibility study should show how flexible “will be the link between the cost of the gas pipeline and the gas volumes.”
In reply to a question whether the South Stream project may be suspended Shmatko gave the negative answer. “What for?” he exclaimed.
“If we can make massive gas supplies to Europe at acceptable prices we will be competitive. As far as I am concerned Europe needs additional 100-120 billion cubic meters of Russian gas,” the minister pointed out.
The South Stream gas pipeline, which should loosen the dependence of suppliers and consumers from the transit countries, particularly from Ukraine and Turkey, will be laid along the Black Sea bottom from Novorossiisk to the Bulgarian port of Varna. In the future its two spur lines will run across the Balkan Peninsula to Italy and Austria.
The investments in the project are estimated at 25 billion euros. The gas pipeline is scheduled to be commissioned by 2015. The gas pipeline with the annual throughput capacity of 63 billion cubic meters is planned to export about 35% of Russian gas to Europe.