MOSCOW, March 10 (RIA Novosti) - Russia's prime minister said on Tuesday that the South Stream gas pipeline would be commissioned in 2015, and that construction costs were estimated at 10 billion euros ($12.7 billion).

"Construction will cost around 10 billion euros. And there will be no problems with funding," Vladimir Putin told a news conference in Moscow following intergovernmental talks with Hungary.

The Russian premier said that Russia had sufficient natural gas reserves to meet Europe's demand "for practically a century."

The South Stream pipeline is designed to pump 31 billion cubic meters per year of Central Asian and Russian gas to the Balkans and on to other European countries, but its capacity could be increased by a further 16 billion cu m. The project involves Bulgaria, Serbia, Hungary, Italy and Greece.

During the consultations, Putin said: "Today an important step will be made towards implementing our accords. A basic agreement on cooperation between Gazprom and the Hungarian Development Bank will be ready for signing."

Plans have also been finalized for a gas storage facility.

"A separate document on building a large underground gas storage facility on the territory of Hungary has been drafted. Hungarian company MOL is Gazprom's partner in this project," Putin said.

"The gas storage facility will have a capacity of over 1 billion cubic meters. This is a large volume, which will enable us to ensure energy security, and the stability of the Hungarian energy sector."

The facility will be put into service in 2012-2013.