Gazprom Pushes Forward South Stream Construction to 2012

Gazprom has said it will begin construction on the South Stream pipeline project in December 2012.

In a statement after a meeting at Gazprom's headquarters, the Russian gas giant said the decision to "significantly speed up" the construction was pursuant to an agreement made with Russian Prime Minister Vladimir Putin.

The meeting approved a "detailed action plan" for the pipeline which would enable the company to begin construction sooner than the previously indicated date of 2013.

"We have everything in place to significantly expedite the previously announced date of the South Stream construction launch," commented Gazprom CEO Alexei Miller.

"We have a regulatory basis, great interest of the project participants in Europe, the required funds and the unique track record of delivering large-scale gas transmission projects offshore. The project is in great demand, people are looking forward to it and we are ready to launch it."

Gazprom is the majority stakeholder in the South Stream project with an interest of 50 per cent. Other partners are Eni Spa, with a 20 per cent interest and Wintershall Holding and GDF Suez at 15 per cent each.