Bulgaria has paid off all obligations within the framework of the Burgas-Alexandroupolis Pipeline and has officially abandoned the project, RIA Novosti reports.
Russia, Bulgaria and Greece signed a governmental deal on construction of the 300-kilometer project in 2007. They formed the Trans-Balkan Pipeline B.V. Company for realization of the project on February 6, 2008. Russia owns 51% of share in the company, Bulgaria and Greece own 49%. Tansneft, Rosneft and Gazprom Neft are Russian sides of the project.
Bulgaria decided to leave the project in December 2011. Bulgarian Finances Minister Simeon Dyankov called the project unprofitable.
Bulgaria paid €1.421 million for 2008, €4.876 million for 2009, €1.323 million for 2010. Both of the latter were paid in early February 2012. Bulgaria paid a total of €171,500 for 2011 in early 2011.
The pipeline was to be built from the Port of Burgas to the Alexandroupolis Port in the Aegean Sea. It was expected to have a capacity of 35 million tons annually, with an expansion potential to 50 million tons. Its competitor Samsun-Ceyhan Pipeline is to transport oil bypassing the Strait of Bosphorus and Dardanelles.
Transneft (Russia) received €4.7 million from Bulgaria in early February. Bulgaria had a debt of €6 million for the project in late February 2011.
