South Stream volume doubled

ROME, May 22 (UPI) -- A deal between Italy's Eni and Russia's Gazprom would double the capacity for the South Stream gas pipeline, though the project faces economic challenges.

A statement on the deal from Eni says the South Stream agreement between the two energy giants would increase transport capacity for South Stream from 1.1 trillion cubic feet to 2.2 trillion cubic feet per year.

Gazprom officials signed a series of bilateral agreements last week at an energy summit in the Black Sea resort town of Sochi on the proposed gas pipeline.

South Stream would bring Russian natural gas to Italy and Greece through the Balkans. Moscow is pushing also for a northern route, Nord Stream, which would bring Russian gas through the Baltic Sea to Germany.

Europe is pushing to diversify its energy transit sector away from a system dependent on Russia through the $10.7 billion Nabucco pipeline. While Moscow sees South Stream development moving ahead of Nabucco, officials insist the project is not a rival program.

Despite a series of deals with South Stream hosts, however, Gazprom is facing declining profits, which may hurt development of the pipeline, the Oil and Gas Journal reports.