EUROASIA: Bulgaria Joined South Stream

Bulgaria’s President Georgy Pyrvanov (left) and Russia’s President Vladimir Putin
Bulgaria will join the South Stream project. Prime Minister of Bulgaria Sergei Stanishev has made the respective statement today, January 18, 2008. Bulgaria will ink the contact for joining the South Stream project initiated by Gazprom today, during the visit of Russia’s President Vladimir Putin to Sofia. The contract budget is estimated at €10 billion.

Italian ENI and Gazprom signed the agreement on laying a new pipeline for shipping gas from Russia to Europe June 23, 2007. On November 22, 2007, the parties sealed a supplementary agreement under the project, the South Stream, that provides for setting up a firm to elaborate a feasibility study for it. Gazprom and ENI will own the venture pari passu; the company's working name is South Stream.

The third partner could be also attracted. The plans are to create the venture by January 15, 2008 and elaborate marketing survey and feasibility study by the end of 2008. The investments will probably exceed $10 billion.

The 900-kilometer South Stream will run through the Black Sea’s bottom from Russia’s shore to the shore of Bulgaria. There, it will divide into the south and north branches. The south pipeline will run from Bulgaria to Romania, Hungary, the Czech Republic and Austria with the optional supplies to the markets of Germany and Italy, while the southern branch will go through Bulgaria to southern Italy. The pipeline’s capacity is estimated at 30 billion cu meters a year and the launch of supplies is slated for 2013.

Russia is negotiating South Stream's construction with Bulgaria, Greece and Serbia.


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