Russia, Bulgaria discuss long-term cooperation in gas transit

Moscow (Platts)--1Feb2006

Russia and Bulgaria have started discussions on Russian gas transit terms
after 2010 with Russia suggesting a switch to a 10- to 20-year contract,
Russian energy minister Viktor Khristenko told reporters Wedenesday following
a meeting with his Bulgarian counterpart Rumen Ovcharov.
     "Now we have started consultations on the terms of gas transit after
2010. We are interested in having long-term and understandable relations for a
ten- to 20-year period," Khristenko said.
     He noted that such issues have been brought up now so to have a clear
picture of Russian gas transit via Bulgaria after 2010. "We must take
decisions now," he said. Khristenko added that Russia prioritizes investments
and transparency for a long-term transit of its gas after 2010. 
     Khristenko thanked Bulgaria for keeping all the terms of contracts to
transit Russian gas to Turkey, Greece and Macedonia. "Bulgaria does not pose
any risks for Russian supplies or European consumers." 
     Ovcharov noted that the bitter cold weather in Russia in mid-January,
which caused Russian gas supplies shortage to a number of European countries,
did not affect Bulgaria significantly. "There were some shortages [in gas
deliveries to Bulgaria] but we've managed to compensate for them with our own
resources, for which Mr. Khristenko thanked us," he said. 
     During the meeting, Khristenko and Ovcharov also discussed a crude
pipeline to be built from Bulgaria's port of Burgas to Greece's
Alexandropoulos. Khristenko said that in March a trilateral working committee
would hold a meeting to prepare key proposals which will help companies take
investment decisions. "We hope that in March such decisions will be taken," he
said.
     The 35-mil mt/yr (700,000 b/d) pipeline is designed to export Russian
crude to the European, US, and Asian-Pacific markets, bypassing the congested
Bosporus. The pipeline can be expanded later to carry up to 50-mil mt/yr. The
project has been a subject of heated discussions over its economic viability
for a decade.
     The Bulgarian minister noted that it was necessary that companies which
would participate in the new export route construction also take steps towards
the project. 
     The two ministries also discussed cooperation in the power sector both in
conventional and nuclear power generation. As one of the projects, Russia and
Bulgaria discuss the construction of nuclear power plant in Belen and possible
participation of Russian companies in it, Ovcharov said.
---Anna Shiryaevskaya, anna_shiryaevskaya@platts.com
---Nadia Rodova, nadia_rodova@platts.com

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