German utility RWE will consider Russia's Gazprom offer for joining its South Stream gas pipeline project, the company announced after the German daily Handelsblatt broke the news, citing unnamed insiders.

According to the newspaper, Gazprom Vice President Alexander Medvedev has approached Leonhard Birnbaum, responsible for strategy and mergers and acquisitions at RWE. It said the German utility was considering the offer.

Handelsblatt commented that should RWE decide to abandon Nabucco and join the South Stream project, this could spell the end of Nabucco.

South Stream is a joint venture of Russia's Gazprom and Italy's Eni. It will exit Russia under the Black Sea and enter the European Union via Bulgaria to carry 63 billion cubic meters of gas a year.

The gas line is scheduled to be completed by 2015. With it Russia aims at eliminating dependence from transit countries.

Serbia, Hungary, Slovenia, Bulgaria, Greece, Italy and Croatia are also signed onto the deal.

Nabucco pipeline aims to provide a supply of gas not subject to Russian control. Current partners in Nabucco are Bulgarian Energy holding, Turkey's Botas, Hungary's MOL, Austria's OMV, Romania's Transgaz and Germany's RWE, each holding 16.67%.

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