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    South Stream Ready to Lay Pipes in 2014

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Summary

South Stream Transport says it expects to start laying pipe for the massive project to run gas under the Black Sea in 2014.

by: Angela Long

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Natural Gas & LNG News, News By Country, Russia, , South Stream Pipeline

South Stream Ready to Lay Pipes in 2014

South Stream Transport says it expects to start laying pipe for the massive project to run gas under the Black Sea in 2014.

The company says it is waiting some permits from the countries involved, but does not anticipate problems.

"We estimate that all permits needed for the construction will be received in 2014 at the latest, so that we can start [deepwater] work," company spokesman Sebastian Sass told reporters at a briefing in Moscow. Russia, Turkey and Bulgaria will all have to agree to the pipeline crossing their sovereign territory.

The South Stream pipeline will bring up to 63 billion cubic meters/year of Russian gas across the Black Sea to Bulgaria, from where the route will go to Serbia, Hungary and Slovenia, and on to northern Italy.

South Stream Transport is currently conducting an Environmental Impact Assessment (EIA) of the pipeline's Russian sector to meet Russian legislative requirements. 

Gazprom owns a 50% interest in the consortium building the subsea section of the line, along with Italy's Eni (20%), France's EDF (15%) and the energy unit of Germany's BASF, Wintershall (15%).

The onland sections will be built by Gazprom in cooperation with local companies.

The underwater section of the pipeline will cross the territorial waters of Russia, Turkey and Bulgaria, and also includes short onshore parts, known as landfall sections, in Russia and Bulgaria.

The company hopes to receive the corresponding permits from Turkey and Bulgaria within the same timeframe. Bulgarian officials have said they expect the above-ground work on the pipeline to start in summer next year.

Earlier this month, Gazprom and the countries participating in the project took final investment decisions for all sections of the pipeline. On December 7 the Russian gas giant says it will hold a groundbreaking ceremony marking the start of the subsea construction phase of the project.

The tender procedures for the subsea section of the project are expected to be conducted through 2013, after which the final cost of the project can be estimated.

Gazprom's preliminary cost estimate for the 925 km (574 mile) underwater section of the pipeline route is some Eur10 billion ($12.81 billion).

See also: South Stream as Kremlin's Geopolitical Tool