EC FINANCES CASPIAN GAS PIPELINE TO CENTRAL, WESTERN EUROPE VIA BULGARIA

The European Commission will release an aid of EUR 1,5 M to EUR 2 M to finance the feasibility study for the construction of a pipeline for Caspian gas to Central and Western Europe via Bulgaria, the Energy Ministry announced Thursday.

The project for construction of trans-border pipeline is a joint initiative of the companies of Romania, Bulgaria, Turkey, Austria and Hungary. The negotiations between the companies were launched in November 2002.

The construction of the pipeline is expected to start in 2008 and to be complete by 2012.

The pipeline crosses the Bulgarian territory over some 400 kilometers. Preliminary estimates set the cost of the pipeline and the adjoining facilities construction at some EUR 350 - 400 M.