Gazprom has signed a contract for the construction of the second line of South Stream.

      As Gazprom’s press release says, South Stream Transport BV сompany, the operator of the construction of South Stream pipeline's offshore section has signed a contract with Swiss Allseas Group for the laying of second line. Also it signed a contract with Saipem for the provision of construction supply services. In particular, Allseas will be carrying out the deep water pipeline laying. It would need to lay almost 900 km of pipes over the seabed.

      When laying the second line, Saipem will provide services on engineering support, management of warehouse terminals for pipe storage and also will connect the offshore gas pipeline with landfall pipeline through above-water technological tie-ins," the report states. The shareholders of the operating company are Gazprom with a share of 50%; Italian Eni with 20%; German Wintershall and the French EdF with 15% each.

      The South Stream Offshore Pipeline will originate at the Russian Black Sea coast in the area of Anapa, Krasnodar Krai, and extend approximately 931 km to the landfall in Bulgaria near Varna.

      It will run through Russian waters for 230 km, 470 km through the Turkish Exclusive Economic Zone and approximately 230 km through Bulgarian waters. At the Bulgarian landfall near Varna it will connect to the South Stream Onshore Pipeline, which will transport gas onwards through Bulgaria.

      Throughout the route we are committed to developing the Project in an environmentally and socially responsible manner, in accordance with national, international, and EU legislation.

      Sound Environmental and Social Impact Assessment

      An initial Feasibility Study completed end of 2011 considered numerous pipeline routes through the Black Sea, as well as landfall options. South Stream Transport is now conducting additional studies in the Front End Engineering and Design (FEED) phase to further develop, optimise, and define the offshore Project.

      Obtaining the required permits for the installation and operation of the pipeline, it is required to conduct thorough and comprehensive assessments of environmental and social impacts of the project. As part of this process, an independent Environmental and Social Impact Assessment (ESIA) is being carried out. The ESIA will ensure that environmental and socio-economic performance standards are met, enhancing the benefits of the Project. It will also enable South Stream Transport to avoid or mitigate any negative impacts of the pipeline and keep its ecological footprint to a minimum throughout its lifecycle.

      Since the pipeline will pass through the territorial waters and/or Exclusive Economic Zones (EEZ) of Russia, Turkey and Bulgaria, Environmental Impact Assessments (EIAs) in each of these countries will be conducted too, with the help of an expert contractor. The EIAs are being conducted according to the national legislation of each country, whereas the ESIA follows the guidelines set by international lenders, such as the Performance Standards of the International Finance Corporation.

      The ESIA, EIA and permitting procedures are performed transparently and openly, taking into consideration the views of a great variety of stakeholder groups. The Project will comply with all environmental and other applicable legislation and standards which are provided i.a. by national legislation, EU law, international conventions, protocols and standards, for instance the Espoo Convention (UNECE Convention on Environmental Impact Assessment in a Transboundary Context). In addition, the South Stream Offshore Pipeline will be developed in compliance with the requirements of the Bucharest Convention on the Protection of the Black Sea Against Pollution.