Bosnias Serb Republic, Russia to sign South Stream deal on Sept 21.

By bne IntelliNews September 21, 2012
Bosnias Serb Republic will sign on Friday, Sept 21, a bilateral cooperation agreement with Russia on creating a joint venture firm that will take over the construction of the South Stream natural gas pipeline leg through the Republic, news service reported. The deal will be signed by the Republics President Milorad Dodik and Gazproms CEO Alexei Miller in the Black Sea resort of Sochi. Gazprom will hold 60% in the future joint venture, while the Serb Republic will control the remaining 40%. The report quoted Dodik as saying that the agreement will also facilitate the construction of two gas-fired power plants in the Republic in the coming years, which would additionally strengthen the energy stability and security of the Bosnian entity. According to Dodik, the joint venture will be established very soon after the deal signing as the new company will complete the design study of the South Stream leg route through the Republic within six to eight months, following which construction will be launched. The South Stream project is estimated to cost EUR 15.5bn, out of which EUR 10bn will go for the construction of the pipelines underwater section in the Black Sea. Building works are due to start at the end of this year. The pipeline will have several legs that will cross Bulgaria, Greece, Serbia, Hungary, Croatia, Slovenia and Austria. The first quantities of South Stream gas are expected to start flowing by end-2015, while the pipeline flow should reach its full capacity of 63 billion cubic metres by 2018.
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