South Stream Gas Pipeline

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South Stream Gas Pipeline Project

Location  From Russia to the European Union - RU
Investment  39,000,000,000 USD
Announced  6/23/2007
Recent Update 
2/16/2017 
The South Stream gas pipeline project, which was suspended in 2014, could possibly be implemented.
Scope  South Stream Gas Pipeline is to transport Russian natural gas under the Black Sea to Bulgaria and further to Italy and Austria, supplying 63 billion cubic meters (bcm) of gas annually.
Development Milestones
6/23/2007 Gazprom and ENI signed a Memorandum of Understanding to execute the South Stream.
1/18/2008 The South Stream AG Special Purpose Entity venture was registered by Gazprom and ENI on a parity basis so, they will carry out the project using the most advanced technologies in full respect of the strictest environmental criteria.
5/15/2009 Gazprom and Eni sign second Addendum to MoU on further actions as part of South Stream project. The Addendum contemplates increasing the throughput of the submerged section of the South Stream gas pipeline from 31 to 63 billion cubic meters of gas a year as well as regulates the gas marketing issues within the project.
11/27/2009 Gazprom and EDF signed a Memorandum of understanding on the possibility of EDF participating in the construction of the offshore section of the South Stream pipeline.
6/20/2010 Eni and Gazprom signed a Memorandum of Understanding permitting EDF to enter South Stream AG joint venture; the stake of EDF would be up to 20%.
9/15/2010 The construction has begun on South Stream Pipeline in Serbia.
11/22/2011 South Stream may branch off to Republika Srpska.
12/28/2011 Turkey granted permit for South Stream construction. These permits allow for unhampered execution of the project for construction and operation of the South Stream gas pipeline running from Russia via the exclusive economic zone of Turkey.
1/20/2012 The South Stream construction will start in December 2012 instead of 2013 as had been previously planned.
2/28/2012 South Stream project schedule stipulating the pipeline's maximum capacity of 63 billion cubic meters per year.
9/21/2012 Gazprom and the Government of Republika Srpska signed Memorandum of Understanding that fixes mutually beneficial partnership and cooperation.
1/29/2013 The cost of South Stream pipeline has soared due to the need to upgrade the Russian trunkline network to connect with the new route.
6/14/2013 Gazprom & Republika Srpska signed roadmap on South Stream gas pipeline. The document outlines a sequence of actions for proving the feasibility of constructing and subsequently operating a gas branch from South Stream to Republika Srpska as part of Bosnia and Herzegovina, as well as constructing gas-fired generating facilities in Republika Srpska.
11/24/2013 Serbian section of South Stream gas pipeline has been constructed.
11/26/2013 South Stream gets underway already in three countries over 12 months.
3/14/2014 Severstal has won a tender to supply about 160 thousand tonnes of 813 mm diameter pipes for the second string of the South Stream Offshore Pipeline.
4/29/2014 Gazprom and OMV signed a Memorandum of Intent to implement the South Stream project in Austria. The Memorandum reflects the parties' intentions to construct the Austrian section of the South Stream gas pipeline with the throughput capacity of up to 32 billion cubic meters a year and the end point in Baumgarten. The gas pipeline will run from the Black Sea coast in Bulgaria through Serbia and Hungary to Austria.
9/16/2014 Gazprom & President of Republika Srpska signed the Basic Terms and Conditions of natural gas supply to Republika Srpska. The document provides for gas export to Republika Srpska via the existing gas transmission corridors from the mid-2015 until the moment when South Stream gas pipeline will be commissioned in the country.
9/16/2014 The intergovernmental agreement providing was finished for joint construction and subsequent operation of a gas branch from the gas trunkline to Republika Srpska as well as boosting the gas-based power industry in the country.
9/22/2014 A bidding procedure is underway in Hungary for selecting a contractor to carry out design & survey activities, spatial planning and environmental impact assessment (EIA) for South Stream's Hungarian section towards Baumgarten in Austria.
12/1/2014 Russia scrapped the South Stream pipeline project to supply gas to southern Europe without crossing Ukraine, citing EU objections.
12/18/2014 Bredero Shaw pipe coating division of ShawCor Ltd. had received contracts from Europipe GmbH and Marubeni Sumitomo Consortium with a combined value of approximately US$100 million for pipeline coating for Lines 1 and 2 of the South Stream Offshore Pipeline project and that its Canusa-CPS division had received a contract with a value of approximately C$30 million from Saipem SpA to provide field joint coating services for Line 1 of the South Stream project. As of the date of the update, the majority of the work associated with its South Stream contracts had been suspended pursuant to suspension notices received from each customer.
12/29/2014 Gazprom entered into agreements with Eni, Wintershall and EDF on purchasing 50% of total shares in South Stream Transport from them. Following the transaction, Eni will recover the capital invested to date in the project, calculated coherently with existing agreements.
5/8/2015 Saipem would restart work on an offshore pipeline in the Black Sea after South Stream Transport BV lifted a suspension of the works.
5/14/2015 Canusa-CPS division of ShawCor has received notification from Saipem SpA that the suspension of the work, on the above noted Saipem contract has been lifted with immediate effect and that work on this contract, is to be resumed.
5/18/2015 The suspension of its agreement to supply pipes for South Stream gas pipeline project had been lifted. Europipe joint venture with Dillinger Huettenwerke had been told the supply suspension was lifted with immediate effect and negotiations about resuming supplies of more than 150,000 tonnes of pipes should start soon.
6/2/2015 The European Commission hopes to come to an agreement with the participant-countries of the close project South Stream in July 2015 on the action plan which would ensure their further access to at least three sources of gas purchase.
6/9/2015 Bredero Shaw pipe coating division of has received notification from Europipe GmbH that the suspension of the work on its contract with Europipe for the concrete weight coating of Line 1 of the South Stream Pipeline has been lifted with immediate effect and that work on this contract is to be resumed. As of this date, all of the Company's contracted work for Line 1 of the South Stream Pipeline, with a value remaining to be executed of approximately C$65 million, has been reinstated, and all of the Company's contracted work for Line 2 of the South Stream Pipeline, with a value remaining to be executed of approximately C$60 million, continues to be suspended.
7/9/2015 Saipem received notification of the termination for convenience of the South Stream BV contract. The termination for convenience is a standard contractual clause which provides for the termination of the agreement in the absence of a contractual breach, with compensation determined in accordance with the terms and conditions of the contract. Also the pipelaying vessel Castoro 6 was in the process of mooring in Russian waters to start pipelaying activities.
1/14/2016 The South Stream gas pipeline project, which proposed the transportation of Russian gas across the Black Sea to the EU countries, should be transformed into “Bulgarian Stream” with 100% Bulgarian ownership over the pipes. The options for the supply of Bulgaria with Russian gas would be discussed on 27-28 January 2016 in Sofia, at a session of the Bulgarian-Russian intergovernmental commission for economic cooperation.
2/13/2016 There is a small probability that the South Stream or Turkish Stream projects will be implemented. The EU is not considering the pipelines as the urgent need to meet its demand; but Russia has already excess capacity for the transportation of gas to Europe.
2/16/2017 The South Stream gas pipeline project, which was suspended in 2014, could possibly be implemented.

Saipem Received Notification of Termination for Convenience of the South Stream BV Contract

Saipem informs that late in the evening of July 8th it received notification of the termination for convenience of the South Stream BV contract. ...


Key Players
South Stream AG
Profile - Partners - News - Contacts
  Partners Partners and shareholders
 Name Shares  Profile News
 Gazprom 100 %


  Operators Suppliers, Contractors & Service providers
 Name $Value  Profile News
 Saipem S.P.A.  

Products catalog

Saipem, a subsidiary of Eni, has prepared the feasibility study of the South Stream Project.
 Severstal  

Products catalog

On 14 March 2014, Severstal has won a tender to supply about 160 thousand tonnes of 813 mm diameter pipes for the second string of the South Stream Offshore Pipeline.
 ShawCor Ltd. 100 M

Products catalog

On 18 December 2014, Bredero Shaw pipe coating division of ShawCor Ltd. had received contracts from Europipe GmbH and Marubeni Sumitomo Consortium with a combined value of approximately US$100 million for pipeline coating for Lines 1 and 2 of the South Stream Offshore Pipeline project and that its Canusa-CPS division had received a contract with a value of approximately C$30 million from Saipem SpA to provide field joint coating services for Line 1 of the South Stream project. As of the date of the update, the majority of the work associated with its South Stream contracts had been suspended pursuant to suspension notices received from each customer.

  Activities Major developments and articles
 Engineering  Operator  Service Provider  Vendor

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