Slovenia Signs Up Despite South Stream Doubts
Gazprom and Slovenian gas distributor Geoplin Plinovodi d.o.o have agreed to form a venture in support of the South Stream gas pipeline.
“I am sure this project will bring a certain benefit to all participants, will ensure reliable energy supplies in Slovenia and other European countries,” Russian Prime Minister Vladimir Putin said in Ljubljana today.
The parties, which will each hold 50 percent of the venture, will have to seek an exemption from the European Union’s directive on the segregation of gas suppliers and pipeline operators.
Putin held talks with Slovenian officials, including Slovenian Prime Minister Borut Pahor, to assure them that the pipeline is on track following comments by Russian deputy prime minister and Energy Minister Igor Sechin last week that indicated that Russia could drop South Stream altogether.
He made the comments after Putin on Tuesday again floated the idea of building liquefied natural gas terminals on the Black Sea to supplement the underwater pipeline, which analysts said conflicted with the purpose of the pipeline project.
Putin said although Russia is currently studying “different versions” of the pipeline construction, “nothing will stop us from carrying out the South Stream project.”
South Stream was originally promoted as an easy way to export gas across the region bypassing the busy Bosporus strait, while ships carrying Russian liquefied natural gas would congest the strait.
Some analysts believe the LNG idea was a way of putting pressure on Turkey to support South Stream because the transport by ships would sideline Turkey from the project.
“We do not think that there is any threat to this project from our Turkish partners,” Putin said.
Slovenia, which buys about 600 million cubic meters of gas a year from Gazprom, was among the Balkan countries whose supplies were disrupted during a gas dispute between Russia and Ukraine.
BASF SE’s Wintershall unit agreed yesterday to acquire 15 percent in the offshore section of the South Stream link. (Read More HERE)
Source: Bloomberg