Gas: South Stream pipeline might pass through Croatia

Instead of Hungary.Gazprom to make final decision, media reports

21 August, 15:47

South Stream is joint project by Russian Gazprom and Italy's ENI South Stream is joint project by Russian Gazprom and Italy's ENI

(ANSAMed) - ZAGHREB, AUGUST 21 - Russian gas giant Gazprom might route its South Stream gas pipeline through Croatia instead of Hungary, Croatian daily Jutarnji list reported on Tuesday.

''We are very interested, but Gazprom will make the final decision, probably in the next two months,'' the paper quoted an executive from Croatian gas transportation company Plinacro as saying. Construction on the pipeline begins in December, the executive said.

The Croatian paper cited lower costs, a shorter route, and ''problems encountered in Hungary'' as reasons for the rerouting.

The pipeline, a joint project between Gazprom and Italian energy company ENI, is designed to bring Russian gas into Europe while bypassing Ukraine. The current project begins at the Black Sea and runs through Bulgaria, Serbia, Hungary and Slovenia to reach Austria and Italy. The possible new route through Croatia would be 270 kilometers long and cost 600 million euros. Construction would begin in 2015, according to Jutarnji list. (ANSAMed).

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