South Stream Starts Construction Works in Bulgaria

Bulgarians will carry no financial risk for the implementation of the South Stream gas pipeline, said Economy and Energy Minister Dragomir Stoynev on Thursday in occasion of the official start of the construction in Bulgaria 

The investment is estimated to EUR 3.5 billion, but the country expects revenues for EUR 2.3 billion.

"A large part of the work will be carried out by Bulgarian companies, which will generate employment. There will be work for Bulgarian companies, which are in a difficult situation," Stoynev commented after a meeting with Gazprom CEO Alexei Miller and Russia’s Energy Minister Alexander Novak.

The offshore section of the South Stream will connect the Russkaya compressor station to the Bulgarian coast, with 900 km pipeline under the Black Sea. The pipeline would then pass through Serbia and other Balkan countries, before ending up in Italy.

“Gas will be supplied directly from Russia to Bulgaria, from Russia to the European Union, bypassing transit countries, thus providing for the most reliable and uninterrupted supplies. South Stream will eliminate transit risks for ever,” said Miller in a note released on Thursday.

"With the South Stream gas pipeline, Bulgaria turns into a major gas hub on the Balkans. I am convinced that this is a good start for the Bulgarian economy and energy. We already have direct access precisely to natural gas in Russia. We will not be dependent on other countries. Bulgaria is turning into a major gas center on the Balkans. From now on, it is up to us to ensure the swift implementation of the project. Over the two years to come, the Bulgarian stretch of the project should be completed," Stoynev added.

The work on South Stream has been delayed with five-six months due to talks on the financial model of the project, Bulgaria’s deputy energy minister Ivan Aiolov stated during a forum on Oct. 8.