Gazprom and Bulgarian Energy Holding EAD signed an Agreement on FS for Bulgarian section of the South stream gas pipeline.

The document specifies the mechanisms and sets the timeframes for cooperation between Gazprom and Bulgarian Energy Holding when performing the feasibility study for the South Stream construction in Bulgaria.

“South Stream is implemented on schedule. Under the last week arrangements an agreement was signed today that will give a fresh impetus to the Bulgarian project. There are no contradictions left anymore between Gazprom and Bulgarian Energy Holding. Much as there are no more barriers for us to set up a joint venture that will assume responsibility for designing, constructing and operating the Bulgarian section of the gas pipeline.

South Stream is definitely a success. We are confident that national feasibility studies for the project will be carried out on the best effort basis and as late as in the first half of 2011 we will be able to take decision on the European route optimization with due consideration for all the existing possibilities,” Alexey Miller said.

Background:

Russian natural gas has been exported to Bulgaria since 1974. In 2009 Gazprom supplied Bulgaria with 2.2 billion cubic meters. At present, Gazprom is the only gas exporter to Bulgaria.

Gazprom transits natural gas to Turkey, Greece and Macedonia via Bulgaria. In December 2006 the existing Transit Contract between Gazprom export and Bulgargaz was extended from 2010 to 2030.

In January 2008 Russia and Bulgaria signed the Intergovernmental Agreement stipulating Bulgaria’s involvement in the South Stream project.

On May 15, 2009 Gazprom and Bulgarian Energy Holding EAD signed the Agreement of  Cooperation during the gas pipeline construction to transit natural gas via the Republic of Bulgaria as part of the South Stream project.

In July 2010 Russia and Bulgaria signed the Roadmap to perform the FS for the Bulgarian section of the South Stream project. The Roadmap represents a plan of prioritized actions for the project implementation in Bulgaria.