Publications / Articles
The end of the mega­pipeline era:Post­-South Stream implications for Central and South Eastern EuropePublished: 1 of March, 2015

Shortly after the sudden cancellation of South Stream, Gazprom CEO Alexey Miller announced it would be replaced by a pipeline of the same capacity (63 bcm) delivered to Turkey across the Black Sea (13 bcm to the Turkish market replacing the trans-Balkan pipeline and 50 bcm to the Turkish-Greek border for southeast European customers). Whether the subsea section follows Blue Stream or the proposed South Stream route initially is still uncertain. Gazprom has already invested $4.7 billion - mostly toward the offshore pipe and charter of the barge – of the approximately $20 billion required for the first two lines (about 30 bcm).
In concert with this major policy shift, Miller asserted that Gazprom will stop supplying gas to Europe through Ukraine in three years’ time. While this is highly unlikely because of infrastructure constraints, it reflects the steadfast determination of Russia to remove Ukraine from its gas transit seemingly at all costs, and leaves central and southeast Europe in another gas supply vacuum.