Bulgaria, Russia sign South Stream gas project roadmap.

By bne IntelliNews July 19, 2010
Bulgarian economy and energy minister Traycho Traykov and Russian energy minister Sergey Shmatko signed on Saturday morning the roadmap for the project for the construction of the South Stream pipeline for natural gas transit from Russia to Southeast and Central Europe and Italy. The roadmap comprises the deadlines and the concrete stages of the pre-project research (to be completed by end-2011) and the setup of the joint project company between Bulgaria and Russia (to be set up by end-2011 also, most probably in February). Both countries will control half of the company, which will own the pipeline in Bulgaria. The price of the pipeline on the territory of the country is estimated at USD 835mn, half of which will be covered by Bulgaria and the remaining amount will be paid by Russia. 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. Russia's gas major Gazprom confirmed recently that field works on the South Stream project are to start in 2013 and be completed in 2015. Meanwhile, economy minister Traykov said that the Russian representatives have agreed to sign annexes to the existing gas supply contracts, which may lower the delivery prices for the country.

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