Gas giant Gazprom and Bulgarian Energy Holding (BEH) have sealed a deal to launch the feasibility study of the Bulgarian section of the South Stream natural gas pipeline, Bloomberg said, citing a statement published on the Russian company’s website.

Gazprom has pledged to carry out the procedure “quickly”, the news agency added.

The accord follows an arrangement between Sofia and Ankara at the beginning of October to build an inter-connector, which will be part of the European Union-backed Nabucco gas pipeline project. The gas link is intended to ensure the delivery of 2.0 billion cubic metres of gas annually, which will be infused into Bulgaria’s existing pipeline system.

Thus, from a transit destination, Sofia will become only a deviation of the European project designed to limit EU’s dependency on Russian natural gas supplies, according to business daily Dnevnik.

On October 15, Gazprom’s head Alexei Miller arrived in Bulgaria after a visit in Romania, insisting that Moscow is interested in the acceleration of the South Stream Project.

Miller then stated that Bulgaria and Russia have agreed to launch in November the rollout of a planned joint venture, which will be in charge of the Bulgarian part of the pipeline, with Bulgaria taking part in the business through the Bulgarian Energy Holding (BEH).

Last week, Bulgarian Prime Minister Boiko Borisov and Russian counterpart Vladimir Putin arranged by telephone the JV’s creation by November 15 on an equal equity basis, as stipulated in the accord sealed between the two countries during the visit of Gazprom’s exports head Alexander Medvedev to Sofia in the summer.

“There are no contradictions between Gazprom and the Bulgarian Energy Holding. There are obstacles to the establishment in the near future of a joint venture which will undertake the design, construction and operation of the Bulgarian section of the pipeline,” according to a statement of the Russian company regarding the feasibility study agreement.

Meanwhile, Miller told Bloomberg that Gazprom will be able to decide on the optimal route of the pipeline in the first half of 2010.

The South Stream project is scheduled to become operational on December 30, 2015, pumping 15.6 billion cubic metres of gas annually, and to shift to a full capacity of 63 billion cubic metres in 2018.

Source: Dnevnik.bg