Gazprom has signed a contract to supply Bulgaria with up to 2.9 bcm of natural gas annually through 2022, RBC reports citing the gas monopoly's statement.
The contract contains a take-or-pay clause, whereby the buyer either takes the product from the supplier or pays the supplier a penalty, while the price of gas is pegged to oil product price. In 2011, Gazprom exported 2.81bcm to Bulgaria.
After the South Stream pipeline is built, gas will be delivered via the pipeline. Gazprom and Bulgarian Energy Holding EAD also approved Thursday the final investment decision to build the Bulgarian section of the South Stream pipeline.
The EUR 15.5bn South Stream pipeline will traverse the Black Sea to Bulgaria, Serbia with offshoots to Bosnia and Herzegovina, and Croatia. It will continue through Hungary, Slovenia and end in northern Italy. Construction of the 900-km offshore section with a design capacity of 63bcm per year is slated to commence on December 7. Deliveries via the pipeline are expected to start in late 2015. The project is being implemented by an international consortium which includes Gazprom, Italian Eni, German Wintershall, and French EDF.
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