The agreement sets forth conditions and deadlines for implementation by Gazprom and OMV of the Austrian section of South Stream and stipulates principles and mechanisms of the parties’ interaction at the pre-investment stage of the project.
The agreement stipulates that in the near future, the parties will set about developing a feasibility study of the Austrian section of South Stream. The feasibility study is aimed at an evaluation of all technical, legal, financial, environmental and economic indicators and parameters, the companies said.
Gazprom and OMV will also set up on a parity basis a joint engineering company for design, financing, construction and operation of Austria’s section of South Stream with a minimum annual capacity of 5–10 billion cubic meters.
It is assumed that within the implementation of the South Stream project on the territory of Austria, OMV will be supplied on a long-term basis with additional 2 billion cubic meters of natural gas.
Wolfgang Ruttenstorfer, CEO of OMV, said: “Through the South Stream Pipeline, OMV’s Baumgarten distribution node will further increase its importance as Central Europe’s major gas turntable.
“As for Central European Gas Hub, already one of the most important gas trading platforms in continental Europe, this additional liquidity at its main trading point will also provide strong momentum and clear support as it seeks to become the leading gas hub in continental Europe.”
