Gazprom to Begin South Stream Construction at Anapa

Gazprom has outlined its initial plans for the construction of the South Stream pipeline, with transit countries and exact routing clarified.

In its corporate magazine published today, the company said it was planning to begin construction on the pipeline at the Russian section of the Black Sea.

"The construction of South Stream will start at the Russian coast of the Black Sea near Anapa," the company said.

"The pipeline will run along the seabed of the Black Sea through the Turkish economic zone and on the Bulgarian coast near Varna. Then the Russian gas will go through Bulgaria, Serbia, Hungary and Slovenia to the northeastern Italian city of Tarvisio.

"Legs from the main pipeline are planned to be built to Greece, Croatia, and Srpska within Bosnia and Herzegovina."

The plan makes no mention of Austria, despite a statement by Eni CEO Paolo Scaroni last month, who said that work would begin on the Austrian leg of the pipeline first, before it would begin on the Italian leg.

At that time, Mr. Scaroni questioned Gazprom's ability to undertake the Austrian section.

"[The] question is in the competence of [Gazprom] and the transit countries, but we have come to agreement that the leg to Italy's southern leg will be made after construction of the first onshore leg to Austria is completed," he said.

Eni is a 20 per cent stakeholder in the South Stream project, while Gazprom holds a larger 50 per cent stake. Wintershall Holding and EDF hold the remaining stakes at 15 per cent each.