Bulgaria's South Stream Construction Price Could Soar - Report

July 11, 2014

The Bulgarian stretch of the South Stream gas pipeline could go beyond $5.86 billion previously estimated, a Russian daily argues.

Vedomosti bases its conclusions on the announcement made this week that the section to be built in neighboring Serbia will be worth $2.1 billion, or 23.5% more than the expected price.

Projected value of the segment in Serbia was $1.7 billion in November 2013, according to Russian Economy Minister Alexander Novak.

Russian energy concern Gazprom's subsidiary Centrgaz, which signed on Tuesday an agreement with Belgrade to carry out the construction, has lately been pointed in media reports as a possible alternative to the current subcontractor in Bulgaria, Stroytransgaz.

Other reports suggested Centrgaz could decide to set up an office in Sofia at a meeting of its Board of Directors Thursday, July 10.

Vedomosti quotes a source related to Gazprom as saying it is a "usual" practice for the company to raise the cost of projects while working on them.

Copyright, Novinite, 2014.