Arm-Twisting Russia Ties South Stream with Bulgaria's Belene

Business » ENERGY | June 22, 2010, Tuesday // 11:25
Bulgaria: Arm-Twisting Russia Ties South Stream with Bulgaria's Belene Up to now, Bulgaria has been a key country in the realization of the South Stream pipeline that must deliver Russian gas to Europe. Photo by wordpress.com

Russia has threatened to change the course of the South Stream gas pipeline project to exclude Bulgaria, the president of gas monopoly Gazprom has said.

Speaking in an interview for Moscow Times Alexei Miller indicated that South Stream might change course to exclude Bulgaria, which, according to him, has disappointed Russia by dragging its feet on other energy projects, such as the construction of an oil pipeline and a nuclear power reactor.

Instead of surfacing near Bulgaria’s city of Varna, the pipeline could run to Romania, Miller suggested.

“As for Romania, I mean studying the feasibility of a major transit pipeline to Serbia,” he said, adding that choosing the route would preclude a Bulgarian section.

The current plan is to lay the pipeline to Serbia — and on to other southern European customers — through Bulgaria. Gazprom and partners will complete the feasibility study in three months at most, Miller said, adding that Romania was also offering broader cooperation in the energy field.

Gazprom estimates South Stream will cost at least billion to build and come on line in December 2015.

Miller also hinted that the undersea portion of the pipeline could pass through Ukraine’s economic zone of the Black Sea, rather than through Turkish waters as planned. He linked the option to the outcome of the ongoing merger talks with Ukraine’s national energy company, Naftogaz Ukrainy.

The news follows statements by Bulgarian PM Boyko Borisov that Bulgaria would be pulling out from two other high-profile energy projects, involving Russia – the Belene NPP and the Burgas-Alexandrupolis oil pipeline – caused confusion and dismay in Russia.

It also confirms last week’s reports, which have suggested that Gazprom is already technically prepared to drop Bulgaria and to pick Romania for its South Stream gas transit pipeline project.

Macedonia is also set to become part of European energy corridors and in particular join the projected South Stream pipeline that will transfer gas from Russia to Southern and Central Europe.

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Tags: South stream, Bulgaria, Romania, Russia, macedonia, Gazprom, Belene, Burgas

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