The consortium managing the planned Russian-backed South Stream natural gas pipeline said on July 1 it’s been approved to start construction in Russian territory.
Russia’s Ministry of Construction has licensed the Amsterdam-based consortium South Stream Transport to start groundwork for laying South Stream taking Russian gas to Europe, the company said in a news release.
It will start landfall works specified in project documentation, laying a 3-kilometre pipeline linked to Russian gas monopoly Gazprom’s supply system. The consortium said a special permit is needed from the Russian government for offshore pipeline construction. That’s expected later this year.
The permit triggers construction of technical infrastructure, ground pipelines and four micro-tunnels. Tunnels mean building work is clear of the coastline, helping preserve the natural landscape of shallow waters.
Gazprom reported on July 1 that South Stream Transport had started a construction complex near the Russia city of Anapa on the Black Sea coast. This would provide approach roads, enable delivery of construction machinery, equipment and materials, and put measures in place to protect rare animals and plants.
South Stream Transport is a joint venture to run the pipeline on the floor of the Black Sea from Russia to Bulgaria’s coast at Varna. The company is owned by Gazprom (50%), Italy’s ENI (20%) and France’s EDF and Germany’s Wintershall (15% each).
Planned annual throughput is rated at 63 billion cubic metres.
South Stream is meant to add a layer of diversity to Russia’s natural gas export options by bypassing transit state Ukraine. Russia sends the bulk of its gas through a Ukrainian transit system, though that route is susceptible to geopolitical risks.
“Pipe laying in Russian waters is scheduled to start in November 2014, after receiving the pipe-laying permit from the Ministry of Natural Resources and Ecology,” the group said. “The first pipeline is to be ready for operations by the end of 2015.”
In related news, Gazprom CEO Alexei Miller said on June 27 that the Russian gas monopoly could retaliate against European countries if they were to sell its gas back to Ukraine through large-scale reverse gas flows.
“There is no physical reverse flow,” ITAR-Tass quoted Miller as telling reporters. “But if we detect a reverse flow on gas-measuring stations in Europe, we may impose restrictions,” he added.
Moscow cut off supplies to Kiev in mid-June after Ukraine failed to meet a deadline to pay a $1.95 billion gas debt, despite extensive negotiations leading up to the deadline.
In late April, Ukraine and Slovakia signed a reverse flow agreement that would make use of an old, unused pipeline to begin exporting 2 billion cubic metres to Kiev in October.
Ukrainian energy officials have since proposed a plan to the EU Commission that would allow Ukraine to increase reverse flows via Slovakia to 30 billion cubic metres, Kommersant reported.
http://www.neurope.eu/article/russia-approves-consortium-south-stream-construction