Senior Gazprom officials told a press conference in Moscow that the decision was because demand in the Greek market cannot cover the cost of the investment. “We are not going to construct a pipeline to be empty,” Leonid Chugunov, head of the company’s Project Management Department said, the newspaper Kathimerini reported.
He stated that his company has shelved plans to build the southern section of South Stream ending at southern Italy via Greece for the foreseeable future, making it clear the project only targets markets that are able to offer significant consumption prospects. That is not the case for either Greece or southern Italy. Should Greece need more gas, it could arrive via the existing interconnections with Bulgaria and Turkey, Chugunov said.
He also distinguished the South Stream project from Gazprom’s interest in Greece’s Public Gas Corporation (DEPA,) saying that regardless of who owns DEPA, the pipeline decision is about the Greek market. Gazprom’s CEO Alexei Miller confirmed that construction on South Stream is expected to begin by year-end.