Gazprom, Bulgaria Sign 'South Stream' Agreement

The Russian Gazprom and the Bulgarian Energy Holding (BEH) have signed an agreement for the execution of the technology and economy validation of the Bulgarian segment of the South Stream gas pipe line.

The information was reported Saturday by the Bulgarian National Radio (BNR).

The agreement has been concluded according to the terms reached during the visit of the Gazprom CEO Alexey Miller in Sofia last week.

The agreement is a fresh start in the work on the Russian project in Bulgaria, and Gazprom and BEH no longer have any disparity, including the establishment of the South Stream joint venture between the two countries for the planning, the building and the use of the pipeline in Bulgaria, the company's statement says.

Gazprom point out they firmly believe the national projects would be completed very quickly and no later than the first half of 2011 a decision to optimize the pipeline's route would be reached. South Stream is supposed to pass through the Black Sea bottom and Bulgaria to Central Europe.

Earlier in October, Romania signed an agreement with Gazprom about the possible construction of South Stream across its territory.

Gazprom hasn't made a final decision on the route.