Gazprom: Severe Winter Proof of Need for South Stream

Russian gas supplier Gazprom, which faced challenges to its supply to European customers during a recent cold snap, has said the harsh weather is proof that the South Stream project should go ahead and is needed.

Folliwng a meeting between Gazprom's Alexey Miller, Leonid Chugunov, Head of the Project Management Department, Pavel Oderov, Head of the International Business Department, and Marcel Kramer, Chief Executive Officer of South Stream, Mr. Miller said that South Stream should and would be built.

"We have brought South Stream to the actual construction stage," Mr. Miller said. "It is no exaggeration to say that Gazprom is busy with the project 24 hours a day.

"This abnormally cold winter, which caused a spike in demand for Russian gas in Europe, is another proof that South Stream has to be and will be built. Europe is in need for the new corridors delivering Russian gas with no transiters."

A press release from Gazprom said the project continued to move on schedule, with particular attention given to the request of Russian Prime Minister Vladimir Putin that the project be commenced by December of this year.

The South Stream pipeline project aims to transport Russian gas through the Black Sea and onto Europe. The planned capacity of the pipeline is 63 billion cubic feet a year.

Gazprom is the majority shareholder in the South Stream project with a 50 per cent stake. Eni holds a 20 per cent stake, while Wintershall Holding and EDF hold a 15 per cent stake each.