Bulgaria, Arkad Sign Contract for Pipeline

State Bulgartransgaz and the Saudi-led Arkad consortium have signed a contract for the supply of the necessary materials and equipment, investment design, construction and commissioning to extend the national gas network, Bulgartransgaz said September 18.

The total value of the contract, which has to be executed within 615 days, is up to €1.102bn, excluding VAT. When complete it will extend the gas transmission infrastructure from the border with Turkey to the border with Serbia.

Bulgartransgaz said the extension was of "strategic importance" and forms part of the national energy strategy following parliamentary approval November 20 2018.

The extension "will increase the energy security of the countries in the region of southeast Europe. The Balkan hub concept foresees the supply of natural gas from various sources, including the Russian Federation," it said. Last December, Bulgartransgaz announced the procedure for building Balkan Stream, the Bulgarian section of TurkStream.

Referring to the illegal tendering of line-pipe contracts that led to the South Stream project being abandoned, Bulgartransgaz said that this time "the procedure was carried out in accordance with the Law on Public Procurement and includes in its subject the supply of the necessary materials and equipment, investment design, construction and commissioning of the extension of the gas transmission infrastructure beginning with the land of Zlatina village, Provadia municipality, where it is connected to the existing gas transmission network of Bulgartransgaz EAD to the Bulgarian - Serbian border."

The pipeline will be about 474 km long and have a diamter of 1.2 metres and a maximum operating pressure of 7.5 MPa. There will also be two optical cables alongside the transmission pipeline. The pipeline route will cross 11 districts, which have given consent.

Bulgartransgaz EAD nominated Arkad as the contractor in April.