Alexey Miller, Chairman of Gazprom's Management Committee and Gerhard Roiss, Chief Executive Officer of OMV inked a Shareholders Agreement for the South Stream Austria joint project company. The document was signed in Vienna during a visit by Russian President Vladimir Putin to the Republic of Austria.

The Agreement envisages the parties' cooperation while constructing the Austrian section of the South Stream gas pipeline with the annual capacity of 30 to 32 billion cubic meters running from the Hungarian border to the end point in Baumgarten. The signed Agreement includes the final investment decision based on approved criteria for the pipeline construction in Austria, as well as Action Plan over 2014 to 2016. Parties expect all the construction permits to be obtained until late 2015. South Stream in Austria is scheduled for commissioning in late 2016.

“South Stream is supported by major European energy companies. The Agreement with OMV represents an important step in constructing a new trans-European gas transmission route. South Stream will offer additional guarantees of reliability and flexibility of Russian gas supplies to European markets already next year,” said Alexey Miller.

“Today's agreement advances the partnership, which has lasted for about 50 years to the next level. Within the South Stream project, Gazprom and OMV are safeguarding the security of supplies for Europe and, particularly, for Austria. This contract also cements the role of Baumgarten as a key European gas hub,” said Gerhard Roiss.

About South Stream

South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic meters across the Black Sea to Southern and Central Europe for the purpose of diversifying the natural gas export routes and eliminating transit risks. First gas via South Stream will be supplied in late 2015. The gas pipeline will reach its full capacity in 2018.

In 2010 the intergovernmental agreement was signed for the implementation of the project in Austria. In 2011 Gazprom and OMV established the South Stream Austria joint project company on a parity basis for the construction of South Stream in Austria.

On April 29, 2014 Gazprom and OMV signed the Memorandum of Understanding with the intention to construct the Austrian section of South Stream with an annual capacity of up to 32 billion cubic meters and the end point in Baumgarten.

OMV is Gazprom's main business partner in Austria. Since 1968 more than 190 billion cubic meters of Russian natural gas have been delivered to Austria, with 5.2 billion cubic meters supplied in 2013.

About Gazprom

Gazprom is a global energy company. Its major business lines are geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as generation and marketing of heat and electric power.

Gazprom views its mission in reliable, efficient and balanced supply of natural gas, other energy resources and their derivatives to consumers.

Gazprom holds the world’s largest natural gas reserves. The Company’s share in the global and Russian gas reserves makes up 18 and 72 per cent respectively. Gazprom accounts for 14 and 74 per cent of the global and Russian gas output accordingly. At present, the Company actively implements large-scale projects aimed at exploiting gas resources of the Yamal Peninsula, Arctic Shelf, Eastern Siberia and the Far East, as well as hydrocarbons exploration and production projects abroad.

Gazprom is a reliable supplier of gas to Russian and foreign consumers. The Company owns the world’s largest gas transmission network – the Unified Gas Supply System of Russia with the total length of over 168 thousand kilometers. Gazprom sells more than half of overall produced gas to Russian consumers and exports gas to more than 30 countries within and beyond the former Soviet Union.