MOSCOW, July 8 (RIA Novosti) – Russia’s Centrgaz, a subsidiary of gas giant Gazprom, has signed a contract on the construction of the South Stream pipeline through Serbia, the gas holding said in a press release Tuesday.
Four companies took part in the tender, which started in March 2014.
“Centrgaz will take on the projection, delivery of equipment and materials, as well as the actual construction and personnel training in Serbia,” the press release reads.
Under the terms of the contract, Serbian companies are to fulfill various parts of the project, according to the release.
On Monday, Russian Prime Minister Dmitry Medvedev said Russia and Serbia would be ready to sign the contract for the construction of the Serbian section of the South Stream gas pipeline in the coming days. In turn, Serbian Prime Minister Aleksandar Vucic confirmed that the remaining technical issues between the parties would be resolved quickly.
The South Stream pipeline, expected to carry Russian gas across the Black Sea to Southern and Central European countries, is aimed at diversification of export routes for Russian gas.
The project stalled when the European Commission expressed concern that Russia’s bilateral agreements with European transit countries, namely Austria, Bulgaria, Hungary and Slovenia, violate the EU Third Energy Package. According to these legislative proposals, the pipelines in the EU cannot belong to the natural gas extractors.
South Stream construction began in late 2012, with the first deliveries expected in 2016, with the pipeline planned to become fully operational in 2018.
