5 Questions about South Stream
Why do we need South Stream?
Europe's energy demand is growing, and according to Eurogas estimates, Europe will need to import the additional 205 billion cubic meters of natural gas per year by 2030, compared to current levels. With an overall designed annual capacity of 63 billion cubic meters, South Stream will make a vital contribution to bridge this "import gap". At the same time, Europe and Russia need to work hard to diversify energy supply routes, in order to mitigate transit risks as well as the potential threats of natural calamities, accidents and terrorist attacks. South Stream will help to achieve this objective.
What are the next steps in the project and when will the route be known?
Currently, Gazprom and Eni are carrying out a detailed feasibility study of the project's offshore part, which is scheduled to be completed in the beginning of 2010. In the outcome the route, technical requirements and carrying capacity will be finalised. Gazprom is also in the process of starting joint ventures with its partners in Greece, Serbia, Bulgaria and Hungary to develop and operate South Stream on their territories. Feasibility studies have also started in each of these countries. Once the studies are completed, the investment decisions and permitting processes will follow. The pipeline construction works are scheduled to be completed by the end of 2015.
Where will the gas for South Stream come from?
The intended gas for the South Stream project will be delivered by Russia's Unified Gas System which contains gas of different origins, including Russia's domestic gas resources and Central Asia's gas suppliers. South Stream will provide natural gas in appropriate volumes to meet the demand of our European consumers, and in accordance with the required physical conditions.
What will be the impact of the South Stream pipeline on the environment?
We take environmental concerns very seriously. Each area of ecological concern will be carefully investigated together with the countries involved, and in accordance with international and national law. In addition, the route of the pipekline's offshore section will be carefully assessed to ensure safety and to minimise any potential impact on the biosphere of the Black Sea.
Is South Stream competing with Nabucco?
South Stream and Nabucco are neither competitors nor mutually exclusive pipeline projects. Projections show that Europe will need more additional gas than the combined capacities of South Stream, Nabucco, and Nord Stream. If both South Stream and Nabucco are to be implemented, the South Stream consortium will closely cooperate with Nabucco in order to optimize gas flows and guarantee reliable supplies.
