Russia’s gas giant Gazprom began the construction of its grand Black Sea pipeline South Stream. Con­struction was launched in Bulgaria.

According to company officials, the launch of construction was a historic event, inasmuch as South Stream is the largest cross-border project in Europe. Russian analysts insist that the successful implementation of South Stream is critical for ensuring the energy security of Europe as a whole. As such, the gas will be car­ried directly from Russia to the E.U., without any transit countries standing in the way. Specifically, South Stream would make landfall in Bulgaria. The pipeline will allow for the reliable and continuous transportation of gas to Europe. According to the project’s proponents, South Stream will allow Russia to do away with transit risks once and for all.

In relation to Bulgaria, the project will entail over 3.5 billion euros in FDI for that eastern European state. More than 2,500 jobs are expected to come into existence. Furthermore, the pipeline will boost the investment rankings of Bulgaria, as the coun­try will come to acquire a developed transmission infrastructure. As a bo­nus, Bulgarian customers can count on reduced gas prices thanks to the decrease in gas transportation costs.

According to the Chairman of Gaz­prom Alexey Miller, South Stream’s construction will proceed along a tight schedule. Before the start of 2014, construction activities are to start in Hungary and in Serbia. Sup­plies through the pipeline will begin as early as in December 2015. The gas infrastructure objects to be built in Bulgaria itself include a linear sec­tion of the pipeline stretching some 540 kilometers, loop lines measuring over 360 kilometers, as well as three compressor stations. The contract reached among the commercial en­tities involved in the construction of South Stream conforms to the inter­governmental agreements reached in talks between Bulgaria and Russia.