Gazprom and Eni sign Memorandum of Understanding on South Stream project
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Gazprom and Eni sign Memorandum of Understanding on South Stream project
The parties agreed to specify in the near future the basic terms for EDF entry into the project allowing it to become a stakeholder in South Stream AG created by Gazprom and Eni on a parity basis.
“The given Memorandum was signed following the agreements reached by Gazprom and EDF last week. It demonstrates intention of Russian and Italian partners engaged in the South Stream project to cooperate with French colleagues in the construction of the large-scale transnational gas pipeline. In general, the emergence of the third partner in the project manifests that Europe recognizes the significance of additional gas supply routes from Russia, the biggest and most reliable exporter of hydrocarbons to the market of the continent,” said Alexei Miller.
Background:
In order to diversify natural gas export routes, Gazprom plans to build the South Stream gas pipeline across the Black Sea to the countries of South and Central Europe.
On June 23, 2007 Gazprom and Eni signed the Memorandum of Understanding on the implementation of the South Stream project The Memorandum specifies areas of cooperation between the two companies in the designing, financing, construction and management of the South Stream.
On January 18, 2008 the special-purpose company South Stream AG was registered in Switzerland. The founders of the company, on a parity basis, are Gazprom and Eni.
On May 15, 2009 Gazprom and Eni signed the second Addendum to the Memorandum of Understanding between Gazprom and Eni of June 23, 2007 on further steps in the implementation of the South Stream project. The Addendum provides for an increase in the capacity of the offshore section of the South Stream gas pipeline from 31 to 63 billion cubic meters per year and governs gas sales insofar as the project is concerned.
On November 27, 2009 Gazprom and EDF signed the Memorandum of Understanding on the possibility of EDF participating in the construction of the offshore section of the South Stream pipeline.
The EDF Group, one of the leaders in the energy market of Europe, is an integrated energy company active in such businesses as electric power generation, transmission, distribution, supply and trading.
The Group is the leading electric power producer in Europe. In France, it has nuclear and hydraulic production facilities where 95 per cent of the electricity output involves no CO2 emissions. The Group is involved in supplying energy and services to more than 38 million customers around the world, including more than 28 million in France.
Information Directorate, OAO Gazprom, 03-12-2009