OIL&GAS: Russian Gazprom Signs Contract for Croatian South Stream Branch

The Russian Oil & Gas Company Gazprom has signed a contract with Croatia’s natural gas network company Plinacro to build the connection through Croatia to the South Stream gas pipeline.  The construction of the Croatian branch is to be built between 2013 and 2016.

The companies will establish a 50-50 joint-venture company and the total value of the 100 km pipeline is €60 million.  The pipeline will connect to the South Stream pipeline through eastern Croatia to the Croatian-Serbian border and the leg will have an annual capacity of 2.7 cubic meters.

The agreement was signed by Plinacro CEO Mladen Antunovic and Gazprom CEO Alexander Medvedev.  Prior to the signing of the agreement, a working group was formed to discuss how Gazprom can support Croatia’s efforts in natural gas procurement, investment in natural gas power plants and the development of natural gas network of stations for motor vehicles…

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