EurActiv: Gazprom links gas price to South Steam participation

Russia’s Gazprom and the Bulgarian government have reached a deal under which Bulgaria will commit to the developing the South Stream pipeline while simultaneously signing a long-term pricing agreement for Russian natural gas.

Gazprom Export Director Alexander Medvedev and Bulgarian Energy Minister Delyan Dobrev said yesterday (27 August) the separate agreements on the gas pipeline and on delivery price would be signed on 15 November, Bulgarian news media reported.

The first agreement concerns Bulgaria’s participation in the Gazprom-favoured South Stream. The country is key to the project, as the offshore section of the pipeline under the Black Sea reaches the Bulgarian coast north of Varna (see map) and then runs across the country before splitting in two branches – one to the to the Baumgarten gas hub near Vienna, the other one through Greece and the Ionian Sea to Italy.  MORE