Sofia proposes 'Bulgarian Stream' to Moscow

The Bulgarian Prime Minister, Boyko Borisov, speaking to the members of parliament, stated that the stopped project 'South Stream', which envisages the transportation of Russian gas to southern Europe, can be carried out under the name 'Bulgarian Stream'.

"It will be 'Bulgarian Stream', if Russia agrees to sell its gas on our border," he said.

The Prime Minister noted that Russian gas transported across the Black Sea may be pumped into the 'Balkan' gas storage facility, which will be constructed not far from the Black Sea city of Varna. According to preliminary estimates, the capacity of Russian pipelines will amount to 10 billion cubic meters of gas per year.

Boyko Borisov explained that the 'Bulgaria Stream' will meet all the requirements of the Third Energy Package of the European Commission.

The Prime Minister of Bulgaria previously stated that the 'Balkan' gas storage facility will make Sofia the main gas transit country for Southeastern and Central Europe. According to him, Bulgaria will be able to receive not only Russian gas, but also blue fuel from Azerbaijan, Turkmenistan, as well as from Romanian and Bulgarian fields.

As noted in an interview with the correspondent of Vestnik Kavkaza by a senior fellow at the Energy Policy Branch of the Institute of Economics of the Russian Academy of Science, Ivan Kapitonov, "this option will match the Third Energy Package, which we are trying to bypass, but it is not a direct access to the consumer."

"As you understand, we are facing a certain intermediary, to whom we will pay a certain percentage, and in general this scheme can be uncomfortable, or to be more specific, Gazprom has always rejected it before. In this regard, I'm having serious doubts about the prospects of the implementation of this project," he said.

The expert noted that "Europe is certainly interested in stable supplies, and gas pipeline systems must meet this criteria." "Because, as you know, if we touch this costly infrastructure, then we ourselves will be interested in supplying the customer through this infrastructure. And Europe itself, if it is going to build, or will help in the construction of this infrastructure, will be interested in filling this infrastructure. In other words, this is where the interests of supplier and buyer coincide," Kapitonov said.

"At the same time, those anti-Russian sentiments that exist at the moment, which, in my opinion, complicate the acceptance of such a decision, once again call into question the prospects for the creation of such infrastructure," he added.

A senior analyst of 'Uralsib Capital', Alexey Kokin, in his turn, noted that conclusions on the attractiveness of the scheme proposed by Bulgaria will be made only when the conditions of the sale of Russian gas will be determined. 'I understand that in fact, the proposal includes the resuscitation of the sea route of the 'South Stream', in other words, the issue of delivery of gas will be resolved through what Gazprom will build and a certain new consortium beneath the Black Sea. But it is not clear to me yet how the relationship of seller and buyer, Gazprom and its customers that will physically consume this gas, will be arranged," he explained.

"In this case, the role that the Bulgarian company will choose for itself is very important. Will it play the same role that Turkey wanted to play? Not just a mediator, but the company that buys all the gas from Gazprom, and then sells on the market? Or a more modest mediating role? It is not clear yet. In this respect, Bulgaria has significantly fewer capabilities than Turkey and to date, this idea, to be a gas hub, never occurred to Sofia, it is something completely new," - the expert noted, adding that Bulgaria would then have to borrow money under the guarantee from Gazprom.