BEH, Gazprom sign agreement for South Stream project in Bulgaria.

By bne IntelliNews October 25, 2010
Bulgarian state-run Bulgarian Energy Holding (BEH) and Russian gas major Gazprom signed an agreement for the implementation of research for the construction of the South Stream pipeline for natural gas transit from Russia to Southeast and Central Europe and Italy on the territory of Bulgaria, Gazprom said on its website. The document outlines the cooperation mechanism between the two companies and the deadlines for the research. Gazprom expects to decide on the project by June 2011. Last week, Bulgarian PM Boyko Borisov and Russian PM Vladimir Putin decided in a phone conversation that the joint project company for the construction of the pipeline on the territory of Bulgaria should be set up by Nov 15. The price of the pipeline on the territory of the country was estimated at USD 835mn (half of which will be covered by Bulgaria, and the remaining amount will be paid by Russia) and is to be updated after the pre-project research is prepared. Gas supplies in the amount of 63bn cubic metres per year under the project will start from the Beregovaya compressor station in Russia and will reach Bulgaria through the Black Sea. The pipeline network on the territory of the country will have two extensions to Serbia and Greece. The total investment is to reach EUR 25bn, as compared to the initial plans of EUR 10bn. Field works on the South Stream project are to start in 2013 and be completed in 2015. Full capacity is to be reached in 2018.

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