Russian energy giant Gazprom and
Slovenia
have signed a final deal to build
the Slovenian stretch of the South Stream gas pipeline, Gazprom said in a
statement on Tuesday.
The deal was signed by Gazprom CEO Alexei
Miller and
Slovenia
’s Plinovodi d.o.o. General Director
Marjan Eberlinc in the presence of Russian Prime Minister Dmitry Medvedev.
Gazprom has previously signed similar deals
with
Hungary
and
Serbia
.
The South Stream pipeline will transport up to
63 billion cubic meters of natural gas to central and southern
Europe
along the
Black Sea
seabed, diversifying Russian gas
routes away from transit countries such as
Ukraine
.
Following Russian President Vladimir Putin’s
instruction, Gazprom has accelerated the South Stream pipeline's construction
schedule, with work now to begin before the end of 2012.
The pipeline’s commercial deliveries of natural
gas to
Europe
are expected to start in the first
quarter of 2016 and the project is set to reach its designed capacity of 63
billion cu m in 2018. The project’s cost, including the pipeline’s overland
sections, is estimated at $16 billion.