E.On to Join South Stream?

E.On AG may join the Russian led South Stream gas pipeline project.

RIA Novosti reports that Gazprom CEO Alexei Miller made the comment on Wednesday.

"...such a big project can not stay unnoticed by such a big company. It is possible that one more participant might join the project," Miller said.

Should a transaction transpire, the German energy group would join with lead partners Gazprom and Italy's Eni, and smaller stakeholders EdF and Wintershall Holdings.

Miller's comments came on a day that the South Stream project made a presentation in Brussels before representatives of the EU authorities, European energy and regulatory agencies,  expert community and the media.

Among those who delivered speeches at the event were Guenter Oettinger, European Commissioner for Energy, Sergei Shmatko, Russian Energy Minister,  Paolo Scaroni, Chief Executive Officer of Eni, and Miller.

Marcel Kramer, Chief Executive Officer of South Stream, made a detailed presentation of the project, touching upon many issues including,the timeline and economic benefits generated by South Stream, safety and environment control during construction and operation of the pipeline and desirable conditions of its regulatory framework.

“Creation of a new long-distance gas pipeline system is a massive project requiring substantial amounts of capital. If companies aiming to implement such projects are deterred from initiating them or face restrictions over the returns they can expect on their investments, the result will be detrimental, above all, to the interests of European consumers,” said Minister Shmatko.

“Having united many European countries around itself, the South Stream project will not merely eliminate current deficiencies in the development of the region's gas infrastructure but will also contribute to further regional collaboration,” noted Miller.

The presentations were made in hopes of furthering Russia's arguement that South Stream, like the competing Nabucco pipeline project, should receive the status of a trans-European gas transmission network.