Eni and Gazprom Sign South Stream Deal

Italian utility Eni has signed an agreement with Russian-owned Gazprom to set up a joint company to construct a direct gas pipeline from Russia to the EU.

The talks follow warnings from Gazprom at the World Energy Congress this month that increased competition abroad could put EU gas supplies at stake if more was not done to encourage direct links between the Russian carrier and the nations it supplies.

The deal between Eni and Gazprom will see gas transported from Beregovaya in Russia to the Bulgarian coast.

The pipeline is planned to travel 900km and up to 2,000m below sea level at its deepest.

From Bulgaria, the pipeline could either travel north- or south-west.

The agreement, which will cover technical feasibility studies and the marketing of the project, will require input from the governments of the transit countries.

By Penny Jones