Financial Times: Gazprom pushes on with South Stream

Russian energy giant Gazprom is set to push ahead with its controversial South Stream gas pipeline which will run to the heart of Europe, while progress on an EU-backed rival project is, as usual, patchier.

On Monday, Srbijagas – a Serbian government-owned monopoly – announced that it would start work on the 470km, €1.7bn stretch of South Stream running through Serbian territory in December.

The statement came after the signing of an agreement with Gazprom, the project’s main backer. The pipeline is expected to carry Russian gas under the Black Sea through the Balkan Peninsula to termini in Greece, Italy and Austria. The Serbian section is expected to carry up to 40bn cubic metres of gas per year, generating €200m in transit revenue per year, according to Srbijagas chief Dusan Bajatovic. Bajatovic says that the pipeline should be complete by December 2015.  MORE