(Source: http://www.naturalgaseurope.com)

“South Stream” Project is a system of new gas pipelines that will connect Russia and the European Union through the floor of the Black Sea.

The sea section of the pipeline is to run through the floor of the Black Sea from the compressor station “Beregovaya” on the Russian coast to the Bulgarian coast. The total length of the Black Sea section will make up about 900 km, and its maximum depth will exceed 2 km.

The South Stream pipeline project was announced on 23 June 2007, when the Chief Executive Officer of Italian energy company Eni Paolo Scaroni and the Vice-Chairman of Russian Gazprom Alexander Medvedev signed in Rome a Memorandum of Understanding (MOU) for construction of South Stream.

The construction of the Bulgarian section of the “South Stream” pipeline began on October 31, 2013. The construction of the sea section in Anapa started on December 07, 2012. Its length is 900 km, and its maximum depth makes up 2250 m. The consortium on its construction involves “Gazprom” (50 percent share), the Italian oil and gas corporate company ENI (20 percent), the German oil and gas company “Wintershall” AG  and the French energy company “Electricite de France” (15 percent).

The pipeline coming out from the Black Sea outlet in Varna will pass through the territory of the European countries from Bulgaria to the Italian city of Tarvisio. The partners of “Gazprom” in the construction of the land sections are Austria, Bulgaria, Greece, Hungary, Serbia, Slovenia and Croatia (agreements have been signed with them). Macedonia is also in the course of joining the project. The gas pipeline branches will be brought from Serbia to Croatia and Republika Srpska (including Bosnia-Herzegovina as a part of it). The projected capacity of the gas pipeline is 63 billion cubic meters of gas per year. Its commissioning is scheduled for the end of 2015.

The commercial procurement is to begin in the 1st quarter of 2016. The construction of the gas pipeline was given the status of the project of national importance in Bulgaria. The intergovernmental agreement between Bulgaria and Russia on the construction of the pipeline across the country was signed in Sofia in January 2008. “Gazprom” and the Bulgarian Energy Holding (BEH EAD) signed an agreement on establishing a parity joint venture in Sochi in May 2009. The clarifying documents were signed later. The final investment decision on the project was made in November 2012. The length of the Bulgarian section is about 540 km. According to “Gazprom”, the construction of the gas pipeline will require 3.5 billion euros. The company chairman Alexei Miller reported on Russia's readiness to take care of the project financing in July 2013. The maximum of the works will be done by the Bulgarian companies.