Gazprom: Bulgaria Now Safe From Romanian Competition For South Stream

Miller's statement came after he and Maya Hristova, CEO of the Bulgarian Energy Holding (BEH) signed a long-anticipated agreement for the establishment of South Stream AD, a 50/50 joint venture for the construction and operation of the Bulgarian section of the South Stream pipeline.

Thus, the Gazprom head dispelled fears in Sofia that Moscow might pick Romania instead as the hub from which the South Stream pipe will split to reach both Southern and Central Europe.

"With Bulgaria we are preparing the technical and economic feasibility survey of the project, and we have signed a project agreement for the realization of South Stream; we don't have any sign contracts with Romania," Miller was quoted as saying.

He pointed out that Gazprom is holding talks with Romania to explore the possibilities for the latter's joining South Stream as a consumer not as a transit country. Miller accompanied Russian Prime Minister Vladimir Putin on a visit to Bulgaria.

After the spring of 2010, as the Bulgarian government appeared to be balking at the Russian demands for South Stream, Moscow initiated contacts with Romania over South Stream. The subsequent accession of Serbia and, potentially, Macedonia to the project, created the possibility that the South Stream pipe could go around Bulgaria.

Russian natural gas giant Gazprom and Romanian authorities in October signed a memorandum of intent on the possibility that the South Stream pipeline may transit Romania. Gazprom said at the time it could sign an intergovernmental agreement with Romania if results of the feasibility studies are positive. The agreement would serve as a political and international legal framework for further implementation of the project in Romania, miller said then.

The South Stream pipeline will have a length of 900 kilometers and is estimated to transport 63 billion cubic meters of natural gas annually.

The project is seen as rival to the planned Nabucco pipeline, in which Romania already committed to participate. Nabucco is scheduled to deliver approximately 31 billion cubic meters of gas annually from the Caspian Sea to Central Europe via Turkey and Romania, bypassing Russia. Both projects are due for completion sometime in 2015.

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