Gazprom, OMV reach terms on Austrian South Stream construction

OAO Gazprom and OMV AG have agreed on construction terms for the Austrian section of the 32 billion cu m/year South Stream natural gas pipeline, ending in Baumgarten. The companies plan to secure all permits by yearend 2015, with first gas deliveries in 2017 and full commissioning January 2018.

A Gazprom delegation travelled to Vienna last week to discuss Russian gas supplies to Austria (OGJ Online, Apr. 24, 2014). Gazprom describes construction of the pipeline as “progressing in strict compliance with the schedule (OGJ Online, Apr. 29, 2014).”

Both companies emphasized the project’s role in enhancing European energy security in discussing the agreement. Russia and Austria signed an intergovernmental agreement regarding the project in 2010 (OGJ Online, Apr. 29, 2010).

Gazprom and Eni SPA agreed in December 2007 to the build the 1,460-mile South Stream under the Black Sea and through Bulgaria. The subsea section is 558 miles long, with the two overland branches running to Slovenia and Austria and Greece and Italy, respectively.