Gazprom agreed to build a branch of South Stream in Croatia

The Russian company "Gazprom" on Thursday signed an agreement with the Croatian pipeline operator Plinacro construction of a branch line of the "South Stream", which will link Russia to Western Europe.

Construction of a 100-kilometer gas pipeline in Croatia will cost € 60 million, is scheduled to begin in July 2015 and be completed by the end of 2016. The estimated capacity — 2.7 billion cubic meters a year, said on Thursday Reuters.

"The plan of action, which we have signed today — a very good solution for Plinacro, since Gazprom will fully use the capacity of the pipeline, and we get a direct supply route to Croatia, which will help reduce prices for the citizens and industrial customers," said CEO Plinacro Mladen Antunovic at the signing ceremony.

"South Stream" will run under the Black Sea to Bulgaria and then through Serbia and Hungary to Italy.

Croatia, which joins the European Union in July, annually consumes about 3 billion cubic meters of gas, 60% of which is produced in its own fields, while the rest comes from the Italian ENI contract, which expires in early 2014.

Gazprom earlier showed interest not only to the supply of gas to Croatia, but also to actively work on its oil and gas market, including participation in the construction of gas power station.

According to the newspaper VIEW, in August last year, said that Croatia can become a transit country for the "South Stream"instead of Hungary. On the territory of Croatia can be built not only on the removal of the "South Stream", but the main trunk gas pipeline system from Serbia to Slovenia, then wrote the Croatian media.

It was reported that the start of construction is to be created on the basis of parity joint venture "South Stream — Croatia", which will be the investor and management company

 

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