24 Nov 2009 18:00

Gazprom could sign agreement with EDF this week on South Stream

RUSSIA-GAZPROM-EDF-AGREEMENT

Gazprom could sign agreement with EDF this week on South Stream

MOSCOW. Nov 24 (Interfax) - Gazprom could sign an agreement this week with France's EDF on the latter company's involvement in the South Stream pipeline project, a source in the sector told Interfax.

The document might be signed during a meeting of the Russo-French Commission on issues of economic partnership, which is head by the prime ministers of the two countries.

The gas pipeline South Stream, the purpose of which is going around unstable transit in Ukraine, will pass from the Black Sea coast of Russia to Bulgaria and then continue to Italy and Austria. The new pipeline's capacity is planned at 63 billion cubic meters a year.

Italy's Eni is currently Gazprom's parent for the development of the seabed section of the pipeline. EDF could receive 10% in the project through lowering the stake of the Italian company.

Gazprom's partners in the construction of the dry-land sections of the pipeline are the national oil and gas companies of the countries through which it runs.