Austria entered Russia’s South Stream
24.04.2010
Russia and Austria signed governmental and corporate agreements on Austria’s accession to Russia’s South Stream gas pipeline project.
Prime Minister, Vladimir Putin, led the Russian delegation to the signing event in Vienna, with follow-up visits to Italy and Ukraine on April 26 and 27.
Austria and Italy are the final destination countries for South Stream’s two branches into Europe.
Russian Energy Minister, Sergei Shmatko, and Austrian Economy Minister, Reinhold Mitterlehner, signed the governmental agreement while the Chairmen of Gazprom
and Austrian OMV, Aleksei Miller and Wolfgang Ruttenstorfer, signed the project agreement on South Stream’s Austrian section.
Putin and Austrian Chancellor, Werner Faymann, witnessed the proceedings. Putin declared that the first gas would flow by December 2015.
Austria (11) -- Analyses -- 2010
More about the deal
24.04.2010
The governmental agreement sets a legal framework for ownership and operation of the South Stream pipeline’s section in Austria and the
distribution platform there.
The corporate agreement is not yet a final document, as some details remain to be filled in. Gazprom and OMV’s subsidiary, OMV Gas & Power, are creating a
joint company to build and operate the South Stream pipeline’s section on Austrian territory, from the Hungarian border to Baumgarten near Vienna.
In principle, the sides agree on a 50- 50 parity structure for the joint company, with Austria “under consideration at this time” to be the country of
legal registration.
Both sides intend to complete the technical and economic feasibility study for South Stream’s Austrian section by the end of 2010.
Gazprom aims to complete the feasibility studies for several other country sections also by the end of 2010, and for the overall South Stream project by February 2011.
Austria is promised a net increase of 2 bcm per year over the existing volume of Russian gas deliveries to the country, once South Stream’s Austrian section
is completed. At present, Austria depends on Russian gas for an estimated 60 to 70 percent of the country’s gas demand (Boerse-Express, April 24).
Russian gas traditionally enters Austria via the Ukraine-Slovakia corridor.
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