OMV strengthens Gazprom ties with South Stream deal

Austria-owned OMV has agreed to join Gazprom in building its natural gas pipeline South Stream on the Austrian section between the Austrian-Hungarian border and the Baumgarten natural gas distribution hub

May 2010 - From the Print Edition

This will put further pressure on Romania to be part of the South Stream pipeline project, while also ensuring it retains support for the rival EU-backed pipeline Nabucco.
OMV is one of the largest investors in Romania and is majority shareholder of Petrom, the largest company in Romania.
The feasibility study for the Austrian subsection of South Stream is scheduled to be completed by the end of 2010.
“The planned South Stream and Nabucco gas pipelines will further increase the significance of OMV’s Baumgarten distribution node as a key European natural gas turntable and boost the security of Europe’s supply,” said Werner Auli, a member of OMV’s executive board responsible for gas and power.
At the same time, Austria and Russia signed an agreement on cooperation in the construction and operation of this gas pipeline on Austrian territory.
The South Stream gas pipeline aims to run from the eastern Black Sea coast in Russia across the Black Sea to Bulgaria. From there, one route option is assumed to pass through Serbia and Hungary to Austria.
Another route is due to run from Hungary to Slovenia and on to Italy, and a third from Bulgaria through Greece and also on to Italy.
The precise route has not yet been decided. Following intensifying dialogue between Gazprom and Romania in the last few months, the Russian gas giant is considering adding another branch of South Stream to also include Romania. A study is now ongoing.
The final investment decision is set to be taken by the end of 2011, with the pipeline currently due to become operational at the end of 2015.