South Stream Bulgaria Keeps Working on Gas Pipeline Project - CEO

Energy | December 10, 2014, Wednesday // 14:18|  views

Dimitar Gogov, CEO of South Stream Bulgaria, photo by BGNES

South Stream Bulgaria keeps working on the gas pipeline project, according to Dimitar Gogov, CEO of the company.

In a Wednesday interview for the Bulgarian National Television (BNT), Gogov announced that there had been no official statement on the part of the shareholders in South Stream that the project had been terminated.

He underscored that the statement of Russian President Vladimir Putin after his meeting with Turkey's President Recep Tayyip Erdogan in Ankara only hinted at a redirection of the gas quantities needed by Turkey and Greece.

Gogov argued that the conceptual design for the South Stream gas pipeline had been completed, with a number of sites earmarked for the project and easements obtained for over 17 000 properties.

“A contract has been signed for awarding construction works to a consortium of companies which can accomplish it,” Gogov added.

The CEO of South Stream Bulgaria specified that some EUR 90 M had been spent since the establishment of the project company.

He claimed that the financial model which had been prepared could be changed, adding that the annual revenues had been calculated at around EUR 450 M a year.

Gogov pointed out that it was hard to calculate the profit or the loss for Bulgaria in case it was bypassed by the conduit.

“If the South Stream gas pipeline project is implemented, it cannot be implemented in a different configuration from the existing one,” Gogov said.

The director of the South Stream Bulgaria project company also drew attention to the fact that the contracts signed under the project so far did not specify a concrete amount of penalty in the case of a suspension of the project.

Gogov also said that there had been a positive signal at the meeting in Brussels on Tuesday, namely that there would be talks between the European Commission and Russia over South Stream.

On Tuesday, EU countries on the route of the South Stream gas pipeline authorized European Commission Vice-President for Energy Union Maros Sefcovic to study the fate of the project after the statement of Vladimir Putin in Ankara that Russia was quitting the scheme.

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Tags: south stream bulgaria, Dimitar Gogov, South Stream gas pipeline, Vladimir Putin, Russian President, Recep Tayipp Erdogan, European Commission, gas supplies


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