Russia's Gazprom CEO Alexei Miller, firmly rejected Tuesday speculations of Western-Balkan media that the South Stream gas transit pipeline will go around Bulgaria.

During a visit to the Serbian capital Belgrade, Miller, cited by the Bulgarian news agency BGNES, stated the pipeline will go through Bulgarian territory, but nevertheless pointed out the final decision on the pipeline going only through Bulgaria or both – Bulgaria and Romania was still pending, and will be made in 2012, along with the final decision on Bulgaria's involvement.

He was firm Bulgaria remains on the South Stream route, stressing Russia had already signed an agreement with Bulgaria on government level.

Inter-government agreements on South Stream have also been signed with Serbia, Hungary, Greece, Slovenia, Croatia and Austria.

The South Stream pipe will start near Novorosiysk on the Russian Black Sea coast, and will go to Bulgaria's Varna; the underwater section will be 900 km long.

In Bulgaria, the pipe is supposed to split in two - one pipeline going to Greece and Southern Italy, and another one going to Austria and Northern Italy through Serbia, Croatia and Slovenia.

After the preliminary survey for the Bulgarian section of South Stream is completed, Bulgaria will make a final decision on a EUR 500 M investment in its section of the South Stream project.

Russia plans to launch the South Stream pipeline in 2015. The pipeline will transport up to 63 billion cubic meters of gas under the Black Sea to central and southern Europe, diversifying Russian gas routes away from transit countries such as Ukraine, which currently is at odds with Russia over the price of gas. Ukraine currently accounts for 80% of Russian gas transit to EU nations.

Bulgaria's Bulgargaz, a subsidiary of the Bulgarian Energy Holding (BEH), and Gazrpom signed a road map for the construction of the Russian sponsored South Stream pipeline in Varna in July 2010. During Russian Prime Minister, Vladimir Putin's visit in Sofia in November 2010, they signed a shareholders' agreement for the project company, which is to construct the Bulgarian section of South Stream. Both parties will have 50% of the shares in the joint venture

In addition to Gazprom, three major Western European energy companies - Italy's Eni, France's EDF, and Germany's BASF are shareholders in the project.

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