Russian Energy Minister, Sergei Shmatko, has said the Bulgarian government is likely to create obstacles in the the implementation of Burgas-Alexandroupolis oil pipeline.

Speaking from the parliamentary rostrum of the Russian Duma, Shmatko said he expects the problems to stem from additional environmental requirements.

"My instinct tells me we are going to have problems with this project. There won't be any problems with the South Stream gas pipeline,” he said.

After it took office in July 2009, Bulgaria's new government of the GERB party made it clear it was going to reconsider the country's participation in the three large-scale energy projects - South Stream gas pipeline, Burgas-Alexandroupolis oil pipeline, and Belene Nuclear Power Plant.

Three Bulgarian Black Sea municipalities - Burgas, Pomorie, and Sozopol - have voted against the pipe in local referendums over environmental concerns.

Municipalities neighbouring Pomorie and nearby Burgas are also harbouring fears that the pipeline could damage their lucrative tourism business, while environmental NGOs have branded the existing plans to build an oil terminal out at sea a disaster waiting to happen.

Bulgaria, Greece and Russia agreed to build the pipeline between Burgas and Alexandroupolis, taking Caspian oil to the Mediterranean skirting the congested Bosphorus, in 2007 after more than a decade of intermittent talks.

The agreement for the company which will construct the Burgas-Alexandroupolis oil transit pipeline was signed by Bulgaria during Russian President Putin's visit to Bulgaria in 2008.

The 280-kilometre pipeline, with 166 kilometres passing through Bulgaria, would have an initial annual capacity of 35 million tonnes, which could be later expanded to 50 million tonnes. Its costs are estimated at up to USD 900 M.

It is expected to be completed by the end of 2011 or beginning of 2012.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!