NATURAL GAS EUROPE: BULGARIA HAS NOT SECURED MONEY FOR THE SOUTH STREAM PROJECT

Bulgaria has not found an investor to finance its participation in the South Stream gas pipeline project, posted the online edition Natural Gas Europe, quoted by Focus agency. "In order to avoid a new scandal like the one regarding the shelved Belene NPP project, we must find the money first and only afterwards - sign a contract," said Bulgarian Minister of Economy, Energy and Tourism, Delian Dobrev, quoted by the online edition. The Bulgarian Government should sign an agreement for building the pipeline by November 15, 2012. According to Minister Dobrev, the South Stream project will cost Bulgaria BGN 300 mln and up to 70% of the construction costs will be guaranteed by loans.

"The money for Bulgaria's participation in the South Stream project should come from loans," Dobrev specified on Saturday for Darik Radio. Once again, he explained that the reduction in the price of Russian natural gas by 11% as of April 1 will come into force after Bulgaria signs the final agreement for the gas conduit, which must happen by November 15.

"Politically, it is very tempting to sign an agreement on this 11% reduction. Had we signed that agreement back in April, we would have probably become national heroes – the only ones in Bulgaria's history who have achieved a decrease in the price of gas. The latter has always increased with one exception - in 2009 - when it was reduced by about 2%," commented Minister Dobrev.