Austria’s energy firm OMV has today signed a shareholders’ agreement over South Stream Austria with Gazprom.
The agreement sets out the terms of partnership between the two companies over the construction of the Austrian section of the gas pipeline, running from the Hungarian border to the end point in Baumgarten, Vienna district.
The parties also agreed a final investment diction on the pipeline construction in the country, as well as a plan of activities for 2014-16.
Gazprom’s South Stream pipeline will be constructed across the Black Sea as an alternative delivery route of natural gas to Southern and Central Europe at a capacity of 63billion cubic meters.
The gas pipeline will reach its full capacity in 2018 with first deliveries expected in 2016.
On April 29 Gazprom and OMV signed a memorandum of understanding to implement the South Stream project in Austria with the annual capacity of up to 32billion cu.m.
“The agreement with OMV marks an important step to establish this new Trans-European gas transmission route,” said Alexey Miller, Gazprom’s chairman.
“As early as next year South Stream will offer additional guarantees of reliability and flexibility of Russian gas supplies to European markets.”
OMV is Gazprom’s main business partner in Austria. Since 1968 more than 190billion cu.m of Russian natural gas have been delivered to Austria, with 5.2billion cu.m supplied in 2013.
“Today’s agreement advances the partnership, which lasted for about 50 years to the next level,” said Gerhard Roiss, OMV chief executive.
“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.”
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