Bulgaria, Russia Sign for South Stream Gas Transit Pipeline

Business » ENERGY | May 15, 2009, Friday // 19:07
Bulgaria, Russia Sign for South Stream Gas Transit Pipeline: Bulgaria, Russia Sign for South Stream Gas Transit Pipeline BEH and Gazprom signed Friday the agreement for South Streamed agreed by Bulgaria's PM Stanishev and Russian President Medvedev last month in Moscow. Photo by EPA/BGNES

The Bulgarian Energy Holding (BEH) and the Russian energy giant Gazprom signed Friday the contract for Bulgaria's participation in the South Stream gas transit pipeline.

The CEO of BEH, Galina Tosheva, and the Chair of the Board of Gazprom, Alexey Miller, signed the agreement in the Russian Black Sea resort Sochi.

The contract for Bulgaria's participation in the Russian-sponsored South Stream project was agreed upon during the recent visit of the Bulgarian Prime Minister Sergey Stanishev in Moscow where he met with Russian President Dmitry Medvedev.

The signed agreement contains the principles for cooperation between the two parties with respect to the preparation of the pre-investment report of the project on Bulgarian territory, and the setting up of a joint company for its execution, BGNES news agency reported.

The report will contain a detailed analysis of all aspects of the South Stream project, and each party will have the right to make its own final investment decision taking into consideration its own legislation, and its own interests.

The Bulgarian Energy Holding and Gazprom are going to create a joint company with equal shares of 50% for the pre-investment study, design, construction, and operation of the stretch of the South Stream pipeline located on Bulgarian territory.

The company is going to abide by the Bulgarian-Russian intergovernmental agreement from January 18, 2008, with the Bulgarian legislation, and with EU legislation.

For the period till the final investment decision is made, the two parties are going to set up a managing committee with equal participation, and a joint working group, and both of these will be functioning based on consensus decisions.

South Stream is the Russian-sponsored gas transit pipeline project often described as a competitor to the EU-sponsored project Nabucco.

To realize South Stream, Gazprom has already made intergovernmental agreements with Bulgaria, Serbia, Hungary, and Greece. These agreements provide for the setting up of joint companies responsible for the operation of the future pipeline on the respective national territories.

 

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Tags: South stream, Gazprom, Russia, Bulgarian Energy Holding, Alexey Miller, Galina Tosheva, BEH, Nabucco, pipeline, natural gas

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