Russia and Bulgaria begin construction of Balkan Stream gas pipeline
To implement the project, 90% of pipes have already been delivered to Russia from Bulgaria.
Bulgaria begins construction of the Balkan Stream gas pipeline with Russian participation, Bulgarian Prime Minister Boyko Borisov reported at a briefing following talks with the Minister of Industry and Trade of the Russian Federation, Denis Manturov.
"The construction of the Balkan Stream begins – as a result of a fair and open procedure, a state company from Saudi Arabia became the executor of the project. While some of us asked about relations with our neighbors, with Russia, with Saudi Arabia, an agreement [on the execution of the project] was signed today. 90 % of pipes for the Balkan Stream have already been delivered to Bulgaria from Russia, and tomorrow we will begin to deliver them along the route. Funding has been secured, 308 km of the gas pipeline will be built before the end of January 2020,” Borisov said.
“After the failure of the South Stream, the Balkans are now given a new chance to implement a project to build a global gas pipeline,” the Bulgarian Prime Minister emphasized.
“We like the name Balkan Stream, we have accepted all the conditions that the Bulgarian leadership demands regarding the gas pipeline. The Russian side supplies pipes, we participate in this project with our products,” Manturov said.
In April, the Italo-Saudi consortium Arcad won the tender for the construction of a gas pipeline to Serbia through the territory of Bulgaria, but the contract with it was signed only on September 18, after a series of trials.
Arcad was ready to build the gas pipeline for € 1.29 billion (in 250 days), or € 1.1 billion (in 615 days).
The forecast of investment costs is 2,767,115,441 leva (about € 1.4 billion). The funds will be invested in the construction of additional infrastructure in accordance with plans for the development of new gas flows in the region. The bulk of the funds will be spent on the construction of a 484 km gas pipeline with Serbia, two compressor stations and a 11.5 km gas pipeline from the Bulgarian-Turkish border to the Stranja compressor station. It is expected that the annual profit of Bulgartransgaz with the successful implementation of the project will be about 360 million leva (about € 180 million).