Russia: Gazprom, Eni Pleased with South Steam Progress

The Gazprom headquarters yesterday a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Paolo Scaroni, Chief Executive Officer of Eni.

The parties discussed the issues of bilateral cooperation as part of the Strategic Partnership Agreement.

In particular, Alexey Miller and Paolo Scaroni examined the current state of the South Stream project and appreciated the progress with its implementation.

Italy is one of the major importers of Russian gas in Europe. Gazprom and Eni have established a long-standing partnership.

In 2010 the amount of gas supplied by Gazprom to Italy was equal to 13.1 billion cubic meters.

In November 2006 Gazprom and Eni entered into the Strategic Partnership Agreement. Under the Agreement the existing contracts for Russian gas supplies to Italy were extended until 2035. As part of the Agreement Gazprom began to directly supply the Italian market with natural gas in the amount of up to 3 billion cubic meters a year and was entitled to acquire stakes in Eni’s international assets.

For the purpose of diversifying natural gas export routes Gazprom is constructing a gas pipeline across the Black Sea to Southern and Central Europe – the South Stream project.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

On September 16, 2011 Gazprom, Eni, Wintershall Holding and EDF signed the Shareholder Agreement for the offshore section of the South Stream project. As a result, the shareholding structure of the South Stream project offshore section is as follows: Gazprom – 50 per cent, Eni – 20 per cent, Wintershall Holding and EDF – 15 per cent each.

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Offshore Energy Today Staff, December 20, 2011