Reuters: Gazprom sees buyers for S. Stream gas despite cost

Natural gas flowing through the South Stream pipeline from Russia to Europe will be more expensive than hub-traded gas but will win customers by ensuring them a more secure and flexible supply, Gazprom said on Monday.

Russia's gas export monopoly aims to supply over 60 billion cubic metres a year, an estimated 10 percent of Europe's annual demand, through the South Stream pipeline to Austria or Italy from 2015. Gazprom plans to make its final investment decision on the project by the end of the year.

"Our estimate is that the difference (between hub-priced gas and South Stream supplies) is $2 per million British thermal units," Sergei Komlev, head of contract structuring and price formation for Gazprom Export, said during the World National Oil Companies Congress in London.  MORE