Today a Gazprom delegation led by Leonid Chugunov, Head of the Gazprom Project Management Department paid a working visit to the Republic of Slovenia.

South StreamSlovenia, a joint project company set up to construct the South Stream section in Slovenia, held the first meeting of its founding members.

The parties discussed the company's work schedules up to the end of 2012 and for 2013. The shareholders meeting have approved criteria for making a final investment decision on the gas pipeline construction.

The meeting elected the Board of Directors of the joint project company. Bostjan Napast, Chairman of the Management Board of Geoplin became Chairman of the Board of South Stream Slovenia, and Leonid Chugunov was appointed Deputy Chairman of the Board of South Stream Slovenia. Igor Belousenko, Deputy Head of the Project Management Department of Gazprom and Janez Groselj, Director of the Energy Department of the Petrol oil company became Directors of the joint project company.

Background

In 2011 Gazprom supplied Slovenia with 0.53 billion cubic meters of natural gas.

With a view to diversify the natural gas export routes Gazprom is implementing the South Stream project. The projected throughput of the South Stream offshore section will reach 63 billion cubic meters per year. Construction of South Stream will start in December 2012. The first gas pipeline string is to be commissioned in late 2015.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

On May 27, 2010 Gazprom and Plinovodi signed the Feasibility Study Agreement for the South Stream section in Slovenia.

On March 22, 2011 Gazprom and Plinovodi signed the Shareholders Agreement on South Stream Slovenia being set up on a parity basis to implement the South Stream project in Slovenia. The company will be engaged in project documents preparation, fundraising, construction and operation of the gas pipeline in Slovenia.

Being a subsidiary company of Geoplin, Plinovodi is a gas transmission system operator in the Republic of Slovenia. The main activities of the company include natural gas transmission, gas transmission network development and maintenance.