South Stream Partnership Formalized

Electricite de France SA and BASF SE have formally joined with Gazprom and Eni SpA, as partners in planned South Stream natural gas pipeline.

A Shareholder Agreement was signed today in the presence of the Russian Federation Prime Minister Vladimir Putin at the International Investment Forum being held in Sochi.

EDF and BASF's Wintershall Holdings unit will each hold 15 percent stakes in the project, with Eni’s interest dropping to 20 percent. 

Gazprom will retain 50 percent holding in the pipeline project to be constructed at an estimated cost of $21.5 billion.

South Stream will transport upwards of 63 billion cubic metres of natural gas to central and southern Europe under the Black Sea, bypassing traditional transit countries such as Ukraine.

The Russian led project hopes that the participation of French and German parties will raise the project's appeal in the European Union, which is promoting the rival Nabucco project.

"The arrangement again confirms the pan-European nature of this major energy infrastructure project," South Stream said in a statement.