Gas Company Boss: South Stream to Improve Reliability of Supply

Ljubljana, 24 July

The South Stream project represents an opportunity for Slovenia to get a more reliable supply of natural gas, not to mention a great business opportunity, chief executive of Slovenian natural gas distributor Geoplin Alojz Stana has told a publication.

Stana told an interview for the web portal Energetika.net that Slovenia would tap into its exceptional geographical position by hosting the South Stream. He stressed that Slovenia might have to wait 30 years or more for a similar energy project to come along, as energy investments tend to happen far less often than in other sectors.
The South Stream pipeline is a joint project of Russia's Gazprom and the Italian Eni gas companies. The pipeline is to enter into service in 2013 and is expected to be worth between EUR 7bn and EUR 10bn.
Stana also said that the course of the pipeline through Slovenia has not yet been determined. He expects the pipeline will enter Slovenia from Hungary and exit the country to Italy. If the project is realised, the Slovenian part will be carried out under Slovenian laws and regulations.
The Geoplin boss also said that Europe was big enough for all three major projects that are currently in the works: along with South Stream, its sister North Stream (bypassing the Baltic countries and Poland by linking Russia with Germany under the Baltic Sea) and the EU- and US-backed Nabucco pipeline (bringing gas from the Caspian basin to Europe via Turkey).
He pointed out that demand for energy in Europe is still growing. He added that Nabucco, which is viewed as a rival to Russian gas, could take more time to launch, as the gas sources involved still have to be set and managed.
The North and South Stream pipelines reflect a new strategy of bringing natural gas supplies directly to the consumer. Nabucco meanwhile tries to bring new sources of gas to Europe, Stana added.
Slovenia and Russia are currently negotiating the framework for an agreement for the passage of the South Stream pipeline through Slovenia.
The talks were expected to be concluded by mid-July, but the Economy Ministry recently announced that the two countries were still working out the details and that there could be a delay.
"Russia has drafted an initial draft proposal [for the agreement] on the basis of the first exchange of opinions. After a renewed exchange of opinions, we shall see the extent of the differences [in views]," the ministry said in the 14 July press release.

Gas Company Boss: South Stream to Improve Reliability of Supply

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