Gazprom, ENI and EDF sign South Stream Project deal
9 Jul 2010
St. Petersburg , Russia – Gazprom, ENI and EDF have recently signed a deal to facilitate the French company’s entry in the shareholding structure of South Stream AG by the end of 2010. The deal envisages EDF taking a stake of at least 10% – through a reduction in ENI’s stake in the joint venture – and also regulates the implementation process of the South Stream gas pipeline’s offshore section construction project at the current stage.
In a bid to diversify its natural gas export routes, Gazprom is planning to construct a gas pipeline across the Black Sea to South and Central Europe - the South Stream project.
In June 2007 Gazprom and ENI signed the Memorandum of Understanding (MoU) on the South Stream project execution. The Memorandum outlines the areas of cooperation between the companies in designing, financing, constructing and managing South Stream.
In January 2008 the South Stream AG Special Purpose Entity was registered in Switzerland. The Entity was established by Gazprom and ENI on a parity basis.
In May, 2009 Gazprom and ENI inked the second Addendum to the MoU of June 23, 2007 between Gazprom and ENI on further steps in the South Stream project execution. This contemplates increasing the pipeline’s offshore section throughput capacity from 31 to 63 billion cubic meters a year and regulates gas marketing issues within the project.
On 27 Nov 2009, Gazprom and EDF signed the MoU on EDF’s possible participation in constructing the South Stream gas pipeline’s offshore section.
On 3 Dec 2009, Gazprom and ENI signed an MoU on the South Stream project in support of EDF’s entry into the South Stream project.
