Russian gas
monopoly Gazprom has reportedly abandoned plans to build a section of the
Russian-backed South Stream gas pipeline to
Italy
,
a day after the Russian company opted for aSouth
Stream pipeline branch to
Austria
.
On 29 April, Gazprom and Austrian oil and gas company OMV signed a
memorandum that foresees building a section of the giant pipeline from
Hungary
to OMV’s Central European Gas Hub near
Vienna
.
The additional Italian spur option was effectively abandoned; gas will
now be delivered to the Austrian hub, from where it could go to many
destinations in
Europe
along the existing pipelines,Reuters quoted two sources close to
Gazprom as saying. Without the Italian branch, the project’s costs will drop by
as much as $1 billion
Also on 30 April, the news agency quoted an Italian government source as
saying South Stream had effectively been put on ice, adding that
Rome
would focus on
the Trans Adriatic Pipeline (TAP), which will transport Azeri gas, and the ITGI
Interconnector pipeline through
Turkey
and
Greece
into
Italy
.