Black morning for the Saipem title a Business Square which opens with a over 6% discount. The plant engineering company pays for the decision of the Russian giant Gazprom to cancel the contract for the South Stream project.
The Russian company explained that the decision of cancel the contract with Saipem on the construction of the first line of the South Stream by applying the 'termination for convenience', a standard contractual clause which allows the possibility of withdrawing from the agreement in the absence of violations of the same. Without going into details, Gazprom explained that the decision is the result of a series of difficulties concerning the project.
Now Gazprom will start talks with other potential contractors to build a pipeline line that will run along the Black Sea to Turkey. The project consists of four lines, each with a capacity of 15,75 billion cubic meters of gas per year.
