OREANDA-NEWS. The Ministry of Construction, Housing and Utilities of the Russian Federation granted today a construction permit to South Stream Transport for the South Stream gas pipeline in Russia.

The permit enables the company to start the construction of the technical infrastructure, as well as all onshore strings of the pipeline, four micro-tunnels and a 3-kilometer gas branch to connect South Stream to the Gazprom's Unified Gas Supply System.

As provided by the permit, South Stream Transport will start developing a construction site near Anapa and building access roads; in addition, the company will take on the deliveries of construction machineries, equipment & materials and arrange protection of rare plants and animals.

Pipe laying in Russia's territorial waters is due in November 2014, upon obtaining a permit from the Ministry of Natural Resources and Environment of the Russian Federation for laying subsea cables and pipelines across Russia's continental shelf and territorial waters.

Background

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 2015. The gas pipeline will reach its full capacity in 2018.
South Stream Transport, an international joint project company, is responsible for the design, construction and subsequent operation of South Stream's offshore section. The company's shareholding is split among Gazprom (50 per cent), Eni (20 per cent), Wintershall and EDF (15 per cent each).
In March 2014 South Stream Transport signed the contract for laying the first string of South Stream's offshore section, later in April – for laying the second string. Moreover, the contracts were signed to supply some 150 thousand pipes for the first two offshore strings. The first offshore string is to be constructed in the third quarter of 2015 and commissioned later that year.