South Stream gas pipeline construction kicks off in Serbia

(welding the first South Stream pipes)

Construction of South Stream gas pipeline in Serbia, in which EUR 1.9 billion is going to be invested, commenced in the afternoon hours on November 24th in a Vojvodina village called Sajkas.

- Apart from guaranting power supply and jobs, construction of South Stream gas pipeline also sends out a clear message that Serbia is a country worthy of investment, and that its manpower is capable of implementing capital projects - Serbian President Tomislav Nikolic said before giving workers a signal to start welding the first pipes on the Serbian stretch of South Stream.

Nikolic said that about 2,500 workers from Serbia would be engaged in this project directly and another 100,000 indirectly, adding that South Stream would allow for a long-term supply of gas to about 35 million households across Europe.

In a statement read by Russian Energy Minister Alexandar Novak in Belgrade, Russian President Vladimir Putin stressed that the gas pipeline would give a great contribution to the improvement of international energy security.

South Stream construction in Serbia should take two years to complete. The capacity of that gas pipeline will be at 40.5 billion cubic meters a year.

The ceremony in Belgrade also saw three agreements signed - funding agreement, transportation agreement, and the one to declare this gas pipeline stretch a project of national importance.

International gas pipeline South Stream is a project launched by the Russian state-owned company Gazprom. Valued at over EUR 16 billion, it will be used to transport Russian gas to Bulgaria, Serbia, Hungary and Western Europe.