With the end of the South Stream project, Russia will have to adapt to a new market where it will not provide gas delivery to end users, Aleksey Miller, the head of Gazprom said in an interview confirming South Stream will not be resumed.
Russia’s Gazprom energy giant has given up the long-cherished South Stream gas pipeline to Europe because of the EU blocking its realization with the Third Energy Package, which prohibits one company to do the full cycle: extraction, transportation and sale of energy resources.
Now Gazprom is going to use already constructed South Stream infrastructure on the Russian territory to build a new gas pipeline across the Black Sea to Turkey, with an annual capacity of 63 billion cubic meters.
That move is going to become a game changer for the European energy market.
“Our strategy towards the European (gas) market is undergoing fundamental changes. The decision to halt the South Stream marks the beginning of the end of our previous market model, when we aimed at ultimate customer delivery in Europe,” the head of Gazprom, Aleksey Miller, told Rossiya 1 Channel in an interview.