South Stream Cost Rises to $39 Billion

The total cost of the South Stream gas pipeline project has risen to 29 billion euros ($39 billion).

Gazprom said that additional expenditures of $16.9 billion to upgrade its domestic gas pipeline system has ballooned the project's cost. The majority of the expediture will be spent raising the capacity of a trunk line from Ukhta in northern Russia to Torzhok, 230 kilometres north of Moscow.

Gazprom had previously estimated the cost of South Stream at 16 billion euros.