South Stream Offshore Cost Rises

The cost of off-shore section of the South Stream gas pipeline is reported to passed the ten billion euro mark. 

In an interview with TASS, Jasper Jansen, a spokesman for the South Stream Transport B.V., said that the total cost will become known only after all the key contracts are concluded.

The offshore section will run through the Black Sea from Russia to Bulgaria and have a total length of 930 kilometers.

Tendering for the pipeline project continues despite major difficulties with the European Commission, with pipe orders placed for two of the four planned lines.

Gazprom has originally pegged the total cost of the project at 16 billion euros.  However analysts say the true cost, including the development of required infrastructure in Russia, will run in the tens of billions.