South Stream Bulgaria to Repeat Call for LOIs for Pipeline Construction

South Stream Bulgaria will repeat the pre-selection procedure by letters of intent (LOIS) for the construction of the Bulgarian part of the South Stream pipeline as it wants to attract more candidates, a notice posted on South Stream’s web site showed.

The company received seven letters of intent by the deadline November 15 from foreign tie-ups, including companies from Russia, Germany, Austria and Turkey without disclosing which the companies are, Capital Daily reported.

The company wants to attract more qualified participants and will open a new procedure instead of extending the period, South Stream Bulgaria said without specifying a new date.

"A possible extension would put them [current applicants] at a distinct disadvantage compared to those who still have not submitted a letter of intent,” the notice read.

South Stream, initiated by Russia's Gazprom and Italy's Eni, aims to diversify gas routes within the European Union and to provide stable gas supplies from Russia to central and southern Europe. The onshore pipeline will connect Varna on the Black Sea to northern Italy, via Bulgaria, Serbia, Hungary and Slovenia. The Bulgarian section is estimated to cost 3.5 billion euro ($4.74 billion).

South Stream is planned to go on stream by the end of 2015 with a pipeline capacity of some 63 billion cubic meters per year.

Source: SeeNews