Gazprom, Romania Sign MOI On South Stream Proj

"Following today's discussions (with Romanian officials), we've signed a memorandum of intent for a technical and economic analysis of a South Stream pipeline transiting Romanian territory," Miller said at the end of a meeting with Romanian Premier Emil Boc.

Gazprom has already completed feasibility studies for all the countries included in the project and is now drawing the technical-economic study for the entire South Stream project, Miller added.

"Provided the results of these feasibility studies are positive, Gazprom and Transgaz (Romania's state-run gas pipeline operator-e.n.) will bring forward the proposal on signing in the first quarter of 2011 a Russian-Romanian intergovernmental agreement of cooperation on South Stream," Gazprom said in a statement.

The agreement would serve as a political and international legal framework for further implementation of the project in Romania, the Russian company added.

According to Miller, the talks with the Romanian representatives targeted ways to optimize the project.

Additionally, Gazprom and Romania agreed to sign a deal in the energy sector and to co-operate at expert level on oil related projects, Miller said.

The South Stream pipeline will have a length of 900 kilometers and is estimated to transport 63 billion cubic meters of natural gas annually. The project is seen as rival to the planned Nabucco pipeline, in which Romania already committed to participate.

Nabucco is scheduled to deliver approximately 31 billion cubic meters of gas annually from the Caspian Sea to Central Europe via Turkey and Romania, bypassing Russia.

Both projects are due for completion sometime in 2015.

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