MOSCOW: Russian natural gas giant Gazprom announced on Tuesday it would begin construction of its South Stream pipeline to Europe on December 7 in advance of a decision on a rival link by EU states.
The state-owned firm's chief Alexei Miller said after signing an investment decision on the project with Slovenia that a similar deal with Bulgaria -- the only transit country yet to approve South Stream -- would be sealed on November 15.
"We intend to sign the final investment decision on the sea section on November 14, and a deal with Bulgaria on November 15," news agencies quoted Miller as saying following talks with Slovenian energy officials.
"Construction will begin on December 7," Miller said.
The project runs in direct competition to the NABUCCO pipeline project that EU states have been discussing with US backing in order to reduce their dependence on Russian gas.
The European Union has been seeking ways to diversify its natural gas supply base to reduce the approximately 30-percent stake that Russia holds today.
The European pipeline intends to channel Caspian Sea and Middle Eastern gas to Europe via Turkey.
But it has struggled to secure delivery deals in the region and is currently debating the merits of making the massive investment amid its current financial turmoil.
Gazprom's link intends to pump Siberian gas under the Black Sea and across southern Europe to the Italian Adriatic Sea coast town of Otranto. (AFP)
