MOSCOW (Commodity Online) : Russian gas giant Gazprom said Wednesday it will invest over 25 million euros in the construction of the Banatski Dvor underground gas storage in Serbia.

In a statement issued here, Gazprom said negotiations on setting up a joint venture, which will operate the Serbian sector of the South Stream pipeline, are over.

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A protocol has been signed, and the joint venture will be registered within 30 days. It added.

The amount of gas carried by the South Stream pipeline will be announced after the drafting of a feasibility study.

South Stream is strategic for European energy security. The project will be complete by the end of 2015.

A feasibility study of the pipeline’s segments to go through the Black Sea and territories of transit countries is being drafted.

The South Stream is a joint project of Gazprom and Italy’s ENI, which envisages the deliveries of Russian and, possibly, Central Asian Natural Gas to Europe across the Black Sea. The project costs about 10 billion euros.

Natural gas will be transported from Russia’s Novorossiisk seaport to Austria and Italy through Bulgarian Varna seaport and the Balkan Pipeline. The undersea segment will stretch out for about 900 kilometers at the maximum depth of over 2,000 meters.

The second stretch of the pipeline will link Greece and southern Italy across the Adriatic Sea. Two lines will be laid from Bulgaria across the Balkan Peninsula to Italy and Austria.

The deliveries will start in 2015. The designed capacity of the future pipeline will make up to 31 billion cubic meters of gas per year

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