Bulgarian Minister Views Advantages of Gas Pipeline Agreement With Russia

Text of report in English by Bulgarian national news agency BTA website,

Sofia, 25 January: The agreement on the South Stream gas pipeline turns Bulgaria into a gas-distribution centre, enhances its national security and provides it with strategic positions, Economy and Energy Minister Petur Dimitrov said before the National Assembly on Friday [25 January]. The negotiation process will be completed when parliament ratifies the accord, he noted.

Dimitrov recalled that on 18 January the National Electric Company (NEK) and Russia’s Atomstroyeksport signed an agreement on engineering, deliveries, construction and setting into operation of the Belene Nuclear Power Plant, consisting of two 1,000-megawatt reactors. Atomstroyeksport and the French Areva are suppliers, and Siemens is subcontractor. The project value is put at 3,997m euros, Dimitrov further said. According to the commitments undertaken, the prime cost of the produced electricity should be between 3.6 and 3.7 cents/mWh. Fifty-one per cent of the nuclear plant will be owned by Bulgaria and 49 per cent by an European strategic investor.

Speaking of the South Stream project Dimitrov said that this is a Russian-Italian initiative. The pipeline’s capacity is 31,000m cu m of gas. The investment on Bulgarian territory is assessed at 1,400m euros.

The Russian side will pay in any event , even if the full capacity of the pipeline is not utilized. South Stream will open over 400 new jobs and the expected budget revenues are put at 230m euros. The European Commission has no objections against Bulgaria’s participation in South Stream, said Dimitrov adding that it will complement the Nabucco project.

By this project Bulgaria will become stronger, wealthier and more influential, the economy and energy minister stated.

Originally published by BTA website, Sofia, in English 1149 25 Jan 08.

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