The cost of the offshore section of the South Stream gas pipeline is estimated
to grow to over 10 billion euro ($12.7 billion), Russian media reported, quoting
the spokesman of the company in charge of the project.
The South Stream
gas pipeline, spearheaded by Gazprom, is planned to carry gas from Russia to
central and southern Europe via Bulgaria, Serbia, Hungary and Slovenia. The
total value of the Gazprom-spearheaded project is estimated at 16 billion
euro.
The cost of the marine section of the South Stream gas pipeline
will become known only after all the key contracts are concluded, Jasper Jansen,
spokesman for South Stream Transport, was quoted as saying on Thursday night by
Russian state-run news agency Itar-Tass.
According to the media, in order
to feed the required amount of gas to South Stream, Russia’s gas transmission
system throughput will be increased through the construction of an additional
2,446 kilometres of line-pipe and 10 compressor stations with total capacity of
1,473 MW. This project has been named South Corridor and will be implemented in
two phases before December 2019.
The offshore part of the South Stream
project, with a length of 931 kilometres, will run from Russia's Black Sea shore
across the Turkish exclusive economic zone to the Bulgarian coast near Varna and
will consist of four pipeline strings with annual capacity expected to reach 63
billion cubic metres.
The future of the South Stream project, however, is
uncertain because the European Commission has said it runs counter to EU law. In
June, the Bulgarian government said it halted the construction of the gas
pipeline on its territory until it complies with EU law.
Earlier this
year South Stream Transport said it signed a contract with Italy's Saipem to lay
the first line of the offshore pipe and for the provision of complementary works
for the second line. It awarded the laying of Line 2 to Swiss company
Allseas.
Pipe-laying will proceed from Russia towards Bulgaria and the
first offshore pipeline will be ready for operations by the end of
2015.
South Stream Transport B.V. is controlled by Gazprom, which holds a
50% stake, Italian group Eni with a 20% stake as well as French energy group EDF
and German company Wintershall with 15% each.