OREANDA-NEWS. In Vienna, as part of Russian President Vladimir Putin's visit to Austria, Alexey Miller, Chairman of Gazprom's Management Committee and Gerhard Roiss, Chief Executive Officer of OMV, signed a Shareholders' Agreement for South Stream Austria GmbH.

The Agreement envisages parties' cooperation to construct the Austrian section of South Stream gas pipeline with the annual capacity of 30 to 32 billion cubic meters running from the Hungarian border to the end point in Baumgarten. As part of the signed Agreement, the final investment decision based on agreed criteria was taken on the pipeline construction in Austria. Also a Plan of Activities for 2014-2016 was signed.

Parties expect all construction permits to be obtained until late 2015. South Stream is planned to be commissioned in Austria in late 2016. "South Stream is being supported by major European energy companies. The Agreement with OMV marks an important step to establish this new Trans-European gas transmission route. As early as next year South Stream will offer additional guarantees of reliability and flexibility of Russian gas supplies to European markets," said Alexey Miller. "TodayЃLs agreement advances the partnership, which lasted for about 50 years to the next level. Within the South Stream project, Gazprom and OMV are safeguarding the security of supplies for Europe and, particularly, for Austria. This contract cements the role of Baumgarten as a key European gas hub in Europe," said Gerhard Roiss.

South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic meters across the Black Sea to Southern and Central Europe for the purpose of diversifying the natural gas export routes and eliminating transit risks. First gas via South Stream will be supplied in late 2016. The gas pipeline will reach its full capacity in 2018.

In 2010, the intergovernmental agreement was signed for the implementation of the project in Austria. In 2011, Gazprom and OMV established on a parity basis a joint project company South Stream Austria GmbH for construction of South Stream in Austria.

On April 29, 2014 Gazprom and OMV signed a Memorandum of Understanding to implement the South Stream project in Austria with the annual capacity of up to 32 billion cubic meters and the end point in Baumgarten.

OMV is GazpromЃLs main business partner in Austria. Since 1968 more than 190 billion cubic meters of Russian natural gas have been delivered to Austria, with 5.2 billion cubic meters supplied in 2013.