South Stream to Begin Construction in Austria First

CEO of Eni Paolo Scaroni has said that the partners in the South Stream pipeline have decided to begin work on the Austrian section of the pipeline before it begins work on the Italian section.

Speaking to reporters today, Mr. Scaroni said a decision had been made to begin work on the northern Austrian section of the pipeline before beginning work on the Italian section.

"This 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," Russian newspaper Ria Novosti reports him as saying.

Yesterday, Russian Prime Minister Vladimir Putin said construction would begin on the pipeline from December this year at a meeting with Gazprom's CEO Alexey Miller. Mr. Miller also said yesterday that the pipeline would be ready to be launched by December 2015.

"We have no doubt we'll be able to keep up with the schedule," Mr. Miller said.

Gazprom is the majority shareholder in the South Stream project which is intended to transport gas from Russia to Europe with a 50 per cent stake. Eni holds a 20 per cent stake in the project while Wintershall Holding and EDF hold a 15 per cent stake each.