New Europe: Bulgaria: Goodbye nukes, hello Russian gas

Bulgaria has scrapped two of its three Russian-backed energy projects. Plans to build the 2,000MW Belene nuclear power plant on the Danube River were cancelled last week, and the Burgas-Alexandroupolis oil pipeline was dropped in December. Usually saying ‘no’ to Russian President-elect Vladimir Putin carries a heavy price.

However, the government of Bulgarian Prime Minister Boyko Borisov is now trying to show renewed enthusiasm for the third project, the South Stream gas pipeline that would carry Russian gas to Europe under the Black Sea via the Balkans.

“The South Stream project is moving according to schedule, with recent announcements of an FID (final investment decision) being made as early as November 2012,” Maria Yegikyan, oil and gas analyst at Moscow’s Alfa Bank, told New Europe on 5 April. “Bulgaria is one of the major players in the South Stream project, with the pipeline expected to go through the Black Sea to Bulgaria and off to other countries.”

Bulgaria gets about 90% of its natural gas from Russia. It may have scrapped Belene but gained gas assurances from South Stream and the EU-backed Nabucco gas pipeline project. Bulgaria’s Economy and Energy Minister Delian Dobrev flew to Moscow days after the Belene cancellation. Instead of being told off by the Russian authorities, he returned with an 11.1% discount on Russian gas exports to Bulgaria, reducing the price from $600 to $534 per 1000 cubic metres, according to preliminary data. In turn, Dobrev promised that Sofia will respect the roadmap of South Stream.

Meanwhile on 4 April, the Bulgarian government at the Council of Ministers named the Nabucco project an “object of national importance”.  MORE