Centrgaz

Russian company Stroytransgaz, which had been commissioned the construction of South Stream in Bulgaria, is pulling out of the gas pipeline project.

The announcement was made by the subcontractor's majority shareholder Gennady Timchenko in an interview with Russian news agency ITAR-TASS.

The Bulgarian stretch of the South Stream gas pipeline could go beyond USD 5.86 B previously estimated, a Russian daily argues.

Vedomosti bases its conclusions on the announcement made this week that the section to be built in neighboring Serbia will be worth USD 2.1 B, or 23.5% more than the expected price.

Contract signed to build South Stream in Serbia

BELGRADE -- South Stream Serbia and Russia's Centrgaz on Tuesday signed a contract on building the section of the South Stream pipeline through the Serbian territory.

Centrgaz, a subsidiary of Gazprom, could step in the construction of the South Stream pipeline's Bulgarian stretch, according to a Russian daily.

Vedomosti's website reports that Centrgaz, which has not fallen under EU or US sanctions over the Ukraine crisis, has already won the tender for South Stream in Bulgaria's western neighbor Serbia.