Bulgaria and Serbia to build gas connection worth 120 million euro

A connection between the gas networks of Bulgaria and Serbia will be constructed until 2013. The connection, worth 100 to 120 million euro, was negotiated on 5 March 2010 in Brussels between Bulgarian Minister of Economy, Energy and Tourism Traycho Traykov and Serbian Minister of Energy Petar Škundrić, according to local information agencies.

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The signing of the agreement took place in the presence of EC Energy Commissioner Günther Oettinger, the executive director of Bulgartransgaz, Ivan Drenovichki, and the general director of Srbijagas, Dušan Bajatović.

PHOTO: iStockphoto

The connection is the first of its kind between the gas systems of Bulgaria and Serbia and will be able to transport 2 billion cubic metres of natural gas annually. Construction is expected to be completed until 2013. This project is part of the project for the connection of the gas systems in the Black Sea region with the European energy market.

The interconnector, whose length is to be 180 kilometres, will be financed by the European Union. Bulgaria will provide 60 million euro under the EU Framework Programme for Regional Development. The rest of the financing will be provided for from Serbia’s pre-accession programmes.

The agreement provides for the establishment of a working group between the state companies Bulgartransgas (part of Bulgarian Energy Holding) and Srbijagas, with the participation of representatives from the European Commission and the Secretariat of the Energy Community; these latter will work on the project’s preparation.

The EC has granted 9 million euro for the construction of gas transition networks of Romania and Bulgaria. The total value of these projects is 30 million euro; Sofia and Bucharest will finance the remaining part of the project through their state gas companies.

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