Bulgarian, Russian PMs agree on South Stream project company setup by Nov 15.

By bne IntelliNews October 22, 2010
Bulgarian PM Boyko Borisov and Russian PM Vladimir Putin decided in a phone conversation that the joint project company 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 should be set up by Nov 15, the council of ministers said on its website. Last week (Oct 15), economy and energy minister Traycho Traykov and Gazprom CEO Alexey Miller decided to establish the company in a month. The state-run Bulgarian Energy Company and Gazprom will hold equal stakes. The pre-investment research is expected to start soon. The price of the pipeline on the territory of the country has been 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, to be completed by end-2011, has been 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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