MOSCOW, Nov 30 (Reuters) - Russian state-owned energy giant Gazprom (GAZP.MM) said its South Stream gas pipeline project from the Caspian to Europe will cost 15.5 billion euros, well above previous estimates of around 10 billion euros.
“In current prices, the seabed portion will cost 10 billion euros, and the on-land portion in Europe around 5.5 billion,” Gazprom said in an article posted on its web site on Tuesday.
The project’s chief executive, Marcel Kramer, said in October that South Stream, controlled by Gazprom and Italy’s Eni (ENI.MI), would cost above 10 billion euros and that the first gas would flow in 2015. [ID:nLDE69C1DI]
Reporting by Ekaterina Golubkova; writing by Jessica Bachman; editing by Alfred Kueppers