The state Bulgarian Energy Holding (BEH), parent of the local gas supplier Bulgargaz, and Russia’s gas major Gazprom are to sign an agreement for the construction of a pipeline for transit of natural gas from Russia to Southeast and Central Europe and Italy under the South Stream project by the middle of May. As recalled, Gazprom wanted to use the existing grids on the territory of the country while the local authorities insisted that a new pipeline should be constructed. The problem seems to have been resolved during discussions between Russian PM Vladimir Putin and Bulgarian PM Sergei Stanishev, who is currently in Moscow for the opening of the Bulgarian industrial exhibition in Russia and to discuss energy projects and foreign trade issues. However, neither of the parties has unveiled the concrete parameters of the reached understanding though Stanishev claims that all Bulgarian requests have been met.

Gas supplies under this project will start from the Beregovaya compressor station in Russia and will reach Bulgaria through the Black Sea . The pipeline network on the territory of the country will have two extensions to Serbia and Greece . First deliveries are expected in 2014-2015 and the total investment is to reach EUR 25bn as compared to initial EUR 10bn. At the beginning of this year, Gazprom announced intentions to increase the capacity of the project gas pipeline by 50% from 31bn cubic metres per year to 47bn cubic metres. The bilateral government agreement for South Stream was signed in January last year during the visit of Putin in Bulgaria .