Gazprom’s Centrgaz to construct South Stream segment in Serbia

OAO Gazprom reported that its Centrgaz unit signed a contract July 8 for South Stream gas pipeline construction in Serbia.

Centrgaz will focus on design, procurement, construction, commissioning, and personnel training. The contract stipulates involving Serbian subcontractors for “certain operations.”

For the Serbian segment of South Stream, Gazprom will hold 51% and Srbijagas 49%.

Gazprom said the bidding procedure for the project began in March and that there were four bidders.

South Stream will ship natural gas across the Black Sea to Southern and Central Europe (OGJ Online, June 25, 2014). It is scheduled to reach full capacity of 63 billion cu m/year in 2018. First flow is expected late in 2015.

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