Gazprom: price spike for South Stream: Prices on energy utilities are slumping; spending on major projects concerning utilities delivery are soaring. On the 4th St. Petersburg International Gas Forum, Alexander Ivannikov, deputy head of Gazproms financial department, said that the cost of the gas pipeline offshore section estimates to 14 billion euro, of the European part - to 9.5 billion euro. Thus, the total project cost has come up to 23.5 billion euro. Previously, gas pipeline budget amounted to 16 billion euro: the cost of the offshore section was 10 billion euro, and the European part – 6 billion euro. The spending’s spike makes up a whopping 47%. In Gazprom they say that the preliminary estimate implied an adjustment for a rise after final results of tenders. Economists didnt expect such a surge though. Ivannikov stated that for the construction of the South Stream insurance arrangements from Russian Agency for Insurance of Export Credits and Investments EXAR should be attracted. According to the agreements reached, South Stream Transport company will be responsible for the construction of the offshore part. The shareholders of this company are Gazprom (50% of shares), Italian Eni (20%), German Wintershall Holding (15%), and French EDF (15%). The European part will be built by joint ventures of Gazprom and companies on the territory of which the gas pipeline will run. Expected throughput capacity of the South Stream will be 63 billion cbm per year. EXAR agency was founded in October 2011. In the first place, it supports high-tech exports by credit and political risks insurance. Its only shareholder is Vnesheconombank.The material has been provided by portal MT5 - mt5
Posted on: Fri, 14 Nov 2014 18:58:27 +0000
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