State-controlled Bulgarian Energy Holding (BEH) and Russian gas major Gazprom are to set up a joint company for the construction of the South Stream pipeline for natural gas transit from Russia to Southeast and Central Europe and Italy in a month, the economy ministry said on its website after a meeting between economy and energy minister Traycho Traykov and Gazprom CEO Alexey Miller on Friday last week (Oct 17). The company, in which BEH and Gazprom will hold equal stakes, will secure the investment, run the project and own the pipeline on the territory of Bulgaria. The pre-investment research is expected to start soon. In July, Traykov and Russian energy minister Sergey Shmatko signed the project roadmap, comprising the deadlines and the specific stages of the pre-project research (to be completed by end-2011) and the setup of the joint project company between Bulgaria and Russia. The latter was expected to be established by end-2011, most probably in February. The price of the pipeline on the territory of the country has been estimated at USD 835mn (half of which will be covered by Bulgaria and the remaining amount will be paid by Russia) and is to be updated after the pre-project research is prepared. Gas supplies in the amount of 63bn cubic metres per year under the 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. The total investment is to reach EUR 25bn as compared to the initial plans of EUR 10bn. Field works on the South Stream project are to start in 2013 and be completed in 2015. Full capacity is to be reached in 2018.