South Stream pipeline construction starts in Bulgaria

Gazprom has started building the 540 km Bulgarian section of the South Stream pipeline, which is to cost approximately US$ 4.8 billion. Alexey Miller, Gazprom Chief Executive Officer, said that the start of construction marks the launch of one of Europe’s largest energy projects.

“A landmark event has taken place today: Construction started on the Bulgarian section of the South Stream gas pipeline, the most large-scale and important project in Europe…This project is a key element of energy security of the whole European continent”, Miller said.

According to officials, South Stream is supposed to add diversity to Russia’s export routes through Europe.

Energy and Economy Minister Dimitar Stoynev said, “Bulgarian consumers will have the first gas deliveries in December 2015. This project will contribute to Europe’s energy security and help reduce prices as the fuel will be delivered directly into the European Union.”

Economic development of Bulgaria
According to Miller, South Stream will “accelerate the economic development of Bulgaria, attracting €3.5 billion of direct investments to the country and creating over 2500 jobs. A new gas transmission infrastructure will increase the investment attractiveness of Bulgaria. Bulgarian consumers will receive gas at a lower rate as the gas pipeline runs directly from Russia via the Black Sea.

A “strict schedule”
The South Stream project is “steadily running ahead” and following a “strict schedule”, according to Miller. Construction will start in Serbia, then in Hungary. Bulgarian consumers are expected to receive first gas via South Stream in December 2015.

Edited from various sources by Hannah Priestley-Eaton

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