Gazprom and Bulgaria Sign Protocol on Implementation of South Stream Project

The document, signed by Gazprom and Bulgarian Energy Holding EAD, sets the entry point of the future gas pipeline to the gas transportation system in Bulgaria, specifies its parameters and determines the next steps in the project.
The working visit of the delegation of OAO Gazprom, headed by the deputy chairman Alexander Medvedev in the Republic of Bulgaria has just been completed. The Head of Project Management of OAO Gazprom» Leonid Chugunov also took part in the visit.

The parties discussed the ongoing cooperation in the gas sector. In particular, they spoke of the realization of the Bulgarian section of the gas pipeline «South Stream».

In the presence of the Minister of Economy, Energy and Tourism of Bulgaria Delyan Dobrev the parties signed a number of documents.

The parties also agreed that a final investment decision on the project will be taken on November 15, 2012.

Besides, the parties confirmed the agreements on the terms of the existing contracts for Russian natural gas deliveries to Bulgaria reached in the spring of 2012, which will increase gas extraction according to the current contracts.

«The signing of these documents is essential for the implementation of a trans-European project «South Stream». This pipeline will provide additional reliability and flexibility of Russian gas supplies to Europe in the coming decades,» — said Alexander Medvedev.

In 2011, Gazprom delivered to Bulgaria 2.81 billion cubic meters of gas.

In order to diversify the export routes for natural gas OAO Gazprom is constructing the gas pipeline South Stream through the Black Sea to the South and Central Europe.

To implement the onshore part of the project with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria a number of intergovernmental agreements were signed.

In July 2010, Russia and Bulgaria signed the Roadmap for a feasibility study of the Bulgarian section of the project «South Stream».

With the aim of carrying out the events of the roadmap on October 25, 2010 Gazprom and Bulgarian Energy Holding EAD signed an agreement on the feasibility study for the Bulgarian section of the project «South Stream».

In November 2010, OAO Gazprom and Bulgarian Energy Holding EAD signed a shareholders’ agreement and the Charter of the joint project company South Stream Bulgaria AD, created on a parity basis to implement the project «South Stream» in Bulgaria. In December 2010, the JPC was registered.
In December 2011, OAO Gazprom and «Bulgarian Energy Holding» EAD completed the legal registration of the contractor performed work on the feasibility study for the Bulgarian section of the gas pipeline «South Stream».

April 19, 2012 the Shareholders’ Meeting of South Stream Bulgaria AD approved an agreement with the contractor to perform the work on spatial planning, the environmental impact assessment, the project documentation of the gas pipeline «South Stream» in Bulgaria.

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