The agreement was signed by South Stream Transport Hungary, a 50%-50% joint venture of Gazprom and the state-owned Hungarian Electricity Works (MVM), and an unnamed international consortium.
The South Stream pipeline will deliver Russian gas to Europe via the Black Sea. It will bypass Ukraine, whose disputes with Moscow have interrupted gas deliveries to Europe several times in recent years.
From 2016, the South Stream pipeline is promised deliver about 30 billion cubic metres of gas a year across Hungary.
Update: A statement from Gazprom to Russian media today announced that the path of the South Stream gas pipeline’s route through Hungary will be determined by April 2014. This will also serve as a deadline for project engineers South Stream Hungary to have completed technical documentation on the project.
It is known that the route’s terminus is in Tarvisio, Italy, and that branch lines will run 51 kilometers into Croatia and 109 kilometers into Republika Srpska.
For some previously proposed routes, see the accompanying illustration
— Material from MTI news service was used in this article
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