A Memorandum of Understanding (MoU) on the possibility of Electricité de France (EDF) participating in the construction of the offshore section of the South Stream Pipeline has been signed by Russia’s Prime Minister Vladimir Putin, his French counterpart Francois Fillon, Gazprom Management Committee Chairman Alexey Miller, and EDF Chief Executive Officer Henri Proglio.
The details of EDF’s participation in the project will be worked out jointly with Eni – the operator of the offshore section of the pipeline – which currently owns a 50 per cent interest in South Stream AG.
Under the MoU, it is foreseen that EDF’s entry into the partnership will be accompanied by the conclusion of a new long-term gas sales contract.
“The participation of a French company in the South Stream project underscores the pan-European scale of the pipeline and is additional evidence of its tremendous importance for ensuring stable energy supplies to the continent,” said Mr Miller.
Mr Proglio said “The agreement enables EDF to complete a further major step forward in its strategy aiming to secure its gas supplies, both for supplying its own electricity production facilties and for selling natural gas to its clients.”
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With a capacity of 63 Bcm/a, the South Stream Pipeline will deliver gas from Russia and Central Asia to Europe via the Black Sea.
The pipeline is expected to cost between $US28–36 billion and is planned to become operational in 2015.
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