Bulgaria's South Stream Construction Price Could Soar - Report

Business » ENERGY | July 10, 2014, Thursday // 12:13| Views: 1080 | Comments: 4
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Bulgaria: Bulgaria's South Stream Construction Price Could Soar - Report File photo

The Bulgarian stretch of the South Stream gas pipeline could go beyond USD 5.86 B previously estimated, a Russian daily argues.

Vedomosti bases its conclusions on the announcement made this week that the section to be built in neighboring Serbia will be worth USD 2.1 B, or 23.5% more than the expected price.

Projected value of the segment in Serbia was USD 1.7 B in November 2013, according to Russian Economy Minister Alexander Novak.

Russian energy concern Gazprom's subsidiary Centrgaz, which signed on Tuesday an agreement with Belgrade to carry out the construction, has lately been pointed in media reports as a possible alternative to the current subcontractor in Bulgaria, Stroytransgaz.

Other reports suggested Centrgaz could decide to set up an office in Sofia at a meeting of its Board of Directors Thursday, July 10.

Vedomosti quotes a source related to Gazprom as saying it is a "usual" practice for the company to raise the cost of projects while working on them.

The daily thus claims that some EUR 3.5 B (USD 4.77 B) that are to be set aside for South Stream in Bulgaria (according to government estimates) could prove insufficient and potentially rise to EUR 4.3 B.

The gas pipeline project has recently come under fire, as the EU and Russia are embroiled in a dispute over the compatibility of South Stream with the rules of Europe's Third Energy Package.

While in Sofia on July 7, Russian Foreign Minister Sergey Lavrov openly called on the EU Commission to "exclude" the project from the common energy regulations, arguing the same measure is in force regarding a number of other pipelines.

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Tags: South stream, Bulgaria, Serbia, Centrgaz, Stroytransgaz, Alexander Novak, Russia, Gazprom, Sergey Lavrov, EU Commission, Third Energy Package
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» To the forumComments (4)
#4
EDC - 24 Jul 2014 // 09:26:48

WHO CAN YOU TRUST ?

The simple answer is NO ONE not EVEN YOURSELF .

Along time ago i sat and had coffee a small corner cafe in Italy an old man in very poor clothing ,torn waist coat
and well worn shirt ,during a chat with me said ,
They used to say do not believe all that you read and a camera never lies ,believe only what you can see ,
He said not even seeing something now can be believed . A short time later a BENTLEY car stopped the driver got out ,opened the rear door and the old man got in . HE was so right.
Corruption is like the VINE it has very long roots from those at the top who pocket a million or more to those at the bottom who pocket the 5lv ,It is a way of life it will never be changed in Bulgaria it is in the culture .
Like many countries the RICH get RICHER ,did you ask how they got so Rich ?
They got rich because they were clever enough to get others to believe in them and do as they said regardless of the consequences , or at the very start they were ruthless enough to get their hands dirty and do the dirty work themselves .The average person is not able to do either of the above and therefore become sheep .

#3
Optimistic - 11 Jul 2014 // 20:06:53

Sure all big projects anywhere in the world costs more than expected, the US when buying big things like aircraft carriers pays far more than starting estimates.

Get on clear the phony political barriers created by the EU and build the pipeline.

#2
sa-sha - 11 Jul 2014 // 18:50:19

Hi, Tania ;-)....Mafia? Right You are. Mafia is immortel. But it's also about gas for Bg people, isn't it? And if it is, then:
(a) To hell with "creepy" Lavrov. Tell me, please, is the St. John-the-McCain & Co' pressure a GOOD for Bulgaria? Have the McCain's USA (or ANY OTHER potential gas suppliers) offered better conditions to Bg?
(b) Be real, Tania. Try not to offend, but to think. To think about Bulgaria, Tania.

#1
Tania Oz - 11 Jul 2014 // 03:00:02

Not "could" but most definitely will. Everyone is in for their share of the kill and the Energy Mafia will be the only ones to benefit and enrich themselves even further. The mega "profits" will be available and directed toward only say a handful of individuals in the loop and to their very loyal minions.

That's also why the creepy Lavrov is in Bg this week, to pressure the government to proceed with South Stream.