The government is to discuss on Wednesday the option to concentrate the whole stake in the project for construction of a 280-kilometre pipeline from local sea port Burgas to Alexandroupolis , Greece in the state-controlled Bulgarian Energy Holding (BEH). The pipeline construction was among the projects (together with the EUR 4bn nuclear power plant in Belene and the EUR 25bn natural gas pipeline South Stream), which have been placed under serious scrutiny due to insufficient economic foundation and lack of a clear and systematic approach to their financing. In May, BEH sold its 50% share in the project to the other local stakeholder, the construction company Technoexportstroy, also a state entity. Until then, BEH and Technoexportstroy owned equal shares of 50% in the local arm of the international project company. State entities of Bulgaria and Greece control 24.5% of the project each against 51% for Russia . The pipeline would transit 35mn tons of oil annually with an option to increase supplies to 50mn tons in the long run. Kazakhstan will supply 48.6% of the initial quantity while the remaining part will be secured by Russia ’s Rosneft and Gazpromneft. The construction of the pipeline will start in September 2010 at the latest and the launching of supplies is expected in 2012.
Source: Intellinews-Bulgaria Today