Montenegro to Join South Stream Project

Montengro is set to join the South Stream project following an announcement from Russian stakeholder Gazprom today confirming the decision.

Montenegro first raised an interest in the project in October of last year, though no detail was given at that time as to the level or exact nature of the country's participation. Today, Gazprom said the two parties have begun work on a feasibility study into building a connection into Montenegro from the South Stream Pipeline.

"The parties have discussed technical opportunities to join Montenegro to the South Stream project, after the country showed it was interested at the end of last year," Russian newspaper Ria Novosti reports the company as saying. "We have decided to work out a feasibility study to build a gas pipeline bend to Montenegro."

Gazprom is the majority stakeholder in the South Stream pipeline project, with a 50 per cent stake. Italian company Eni holds a 20 per cent stake, while German Wintershall Holding and French GDF Suez both hold a 15 per cent stake each.

Activity on the project has recently accelerated following a request from Russian Prime Minsiter Vladimir Putin to Gazprom CEO Alexey Miller to "significantly speed up" the project. As a result, construction will begin on the pipeline in December 2012, instead of the 2013 beginning date originally planned.