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Bulgarian Parliament to Ratify South Stream in July

SOFIA, Bulgaria (AFP)--The Bulgarian government has asked parliament to ratify the South Stream gas pipeline deal with Russia in a vote likely to take place within the next month, the government information service said Thursday.
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Πεμ, 26 Ιουνίου 2008 - 07:40
SOFIA, Bulgaria (AFP)--The Bulgarian government has asked parliament to ratify the South Stream gas pipeline deal with Russia in a vote likely to take place within the next month, the government information service said Thursday.

The landmark deal was originally signed by Moscow and Sofia during a visit of former Russian President Vladimir Putin to Bulgaria in January but must now be adopted by parliament before it can come into force.

The EUR10 billion South Stream pipeline is being built by Russian gas giant 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.

"With the construction of the South Stream pipeline Bulgaria will become a strategic hub for the distribution of natural gas to Europe," the government said.

With capacity to transport up to 30 billion cubic meters of gas a year, South Stream is regarded by energy experts as strengthening Moscow's grip as the leading gas supplier to Europe.

The deal was signed for a period of 30 years with an option to extend it.

Bulgaria and Russia also agreed to a stake of 50% apiece in the company that will operate the stretch of the South Stream pipeline running through Bulgarian territory.

The pipeline is expected to come into operation by 2013-2014.

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