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Bulgaria Sees South Stream Gas Pipe Operational By 2013 - AFP

A EUR10 billion pipeline carrying Russian gas to Europe through Bulgaria should be up and running by 2013, Bulgarian Economy and Economy Minister Petar Dimitrov said Friday.
Παρ, 25 Ιανουαρίου 2008 - 05:36
"The deadline for coming onstream is 2013," the minister told parliament in a debate on the South Stream pipeline project, which was formally signed during Russian President Vladimir Putin's visit here last week.

The deal has come under scrutiny because of the expected increase in Russian influence over energy supplies to Europe, a very sensitive issue.

The South Stream pipeline is being built by Russia's OAO Gazprom (GAZP.RS) and Eni SpA (E) of Italy. It will first cross the Black Sea into Bulgaria and then split into two arms, one going northwest to Austria and the other south to Greece and then west to southern Italy.

Russia also signed an accord with Serbia Friday, allowing South Stream to pass through Serbian territory.

Dimitrov expressed satisfaction that, under Bulgaria's deal with Russia, state-owned company Bulgargaz would hold a 50% stake in the pipeline on Bulgarian territory. Gazprom will hold the other 50%.

"In no other agreement signed by Gazprom have such favorable conditions been agreed," the minister said.

Nevertheless, the conservative opposition party's Ivan Kostov, a former prime minister, attacked the government for sharing ownership of a gas pipeline in Bulgaria.

Even communist dictator Todor Jivkov had managed to retain sovereignty of the existing pipeline which currently pumps Russian gas through Bulgaria, Kostov said.

"Your decision effectively amounts to national treason," he said.

South Stream, which will transport up to 31 billion cubic meters of gas, is expected to cost EUR10 billion to build, with the Bulgarian stretch costing EUR1.4 billion. The deal now has to be ratified by Bulgarian parliament, where the current center-left coalition government holds a large majority.

Prime Minister Sergey Stanishev told parliament the deal wouldn't threaten another major pipeline project, Nabucco, being planned by the European Union.

Nabucco will transport Central Asian gas from the Caspian basin to Europe but bypass Russia in a bid to reduce the E.U.'s dependence on Russian gas.

"The South Stream project is in the E.U.'s interest," Stanishev said.

He insisted Bulgaria "is (also) very interested in Nabucco" because it would enable the Balkan state to diversify" it own gas supplies.

Nabucco will also run through Bulgaria.

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