Brussels, 23/04/2014 (Agence Europe) - On 23 April, the Russian gas company Gazprom agreed to Austria's proposal to look into the possibilities of building a section of the “South Stream” gas pipeline in the country.
Against the fraught current backdrop of a gas dispute between Russia and Ukraine which threatens the EU, Gazprom wants to consolidate its position in Austria, a country which the company has been supplying for more than 40 years. Through its main local trade partner, the Austrian energy company OMV, Gazprom has provided the country with 187 billion m3 of gas over that period, with 5.23 billion m3 supplied in 2013.
Visiting Vienna on 23 April, Gazprom's CEO, Alexey Miller, met the Austrian Minister for the Economy, Reinhold Mitterlehner, to examine the state of play with cooperation between Russia and Austria in the energy sector. “It was noted that the years of mutually beneficial partnership have played a specific role in reinforcing economic ties between Austria and Russia and that cooperation in the gas sector has considerable prospects for development”, the Russian gas company stated in a press release (our translation). With regard to this, Gazprom has agreed to the proposal put forward by the Austrian party to explore the possibility of building a section of gas pipeline in Austria in the framework of the existing inter-governmental agreement, at the same time as the Slovenian section. “The current geopolitical situation confirms the relevance of alternative routes for supplies of Russian gas to European consumers”, Gazprom explained.
“South Stream”, which is steered by Gazprom and the Italian energy company ENI, will connect Russia to Bulgaria to serve the European market through two branches. One of these, to the South, will cross Greece to reach Italy and the other will head north through Serbia, Hungary and Slovenia to Austria. Both will avoid Ukraine, the main transit country for Russian gas destined for Europe. (EH)