Saipem received a "notification of suspension of marine spread activities," which covers all vessels currently engaged in activities related to Gazprom’s South Stream pipeline project, including the Saipem 7000 J-Lay vessel.
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Image of the Saipem 7000 J-Lay vessel. From Saipem. |
Saipem says that currently, it is not possible to determine the economic impact of the suspension on the company’s business, as both the duration of the suspension and the client’s ultimate decision on the project is unknown.
Earlier this week, Russian President Vladimir Putin announced that Russia would discontinue plans for the South Stream pipeline, and instead go ahead with preliminary plans to create a gas hub for southern Europe at the Turkish-Greek border.
The South Stream pipeline was to consist of four parallel gas pipelines, each 931km long, to be laid at depths of 2200m. It was planned to originate in Russia, run under the Black Sea, emerge in Bulgaria, and then travel through Serbia, Hungary and Siovenia before ending in Tarvisio, Italy. In addition, it was to supply gas to Croatia and Bosnia and Herzeovina.
Commercial operations for the pipeline were scheduled to begin by the end of 2015 and at full capacity, the four gas pipelines were expected to deliver 63Bcm of natural gas a year.
In March, South Stream Transport awarded Saipem a $2.7 billion contract to use the Saipem 7000 vessel, for the construction of the first line of the South Stream pipeline.
Gazprom holds a 50% stake in the South Stream Transport joint venture. Its partners are Italy’s Eni (20%), France’s EDF and Germany’s Wintershall Holding GmbH (BASF Group) with 15% each.
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