On February 23, Bulgaria’s state-owned Bulgartransgaz stated that its 143.6 million levs (89.2 million US dollars / 73.4 million euros) tender project provided equipment and construction for the natural gas connection point between Bulgaria and Serbia, attracting 11 bidders.

Bulgartransgaz stated in a notice that nine joint ventures and the Bulgarian branch of Arkad and Bonatti, which are registered in Italy, submitted bids.

Bulgartransgaz has not yet set a date to start offering prices. On Bulgarian soil, the length of the natural gas pipeline is 62 kilometers.

Serbia-Bulgaria natural gas pipeline

The project involves the construction of a two-way natural gas pipeline of approximately 108 kilometers between Nis and Dimitrovgrad and from Dimitrovgrad to the border with Bulgaria. This new development project will meet the annual demand of about 2 billion cubic meters, thereby helping to diversify the energy of Serbia and the wider Western Balkans, and help to establish a trans-European energy network.

The European Commission provided funds to the Serbian side with 49.6 million euros. The European Investment Bank approved a loan of 25 million euros in December 2018 for the construction of the Serbian section. By 2020, Bulgaria has received a grant of 27.6 million euros for construction projects under the "Connect Europe" fund.

One of the project sponsors, Bulgartransgaz, a state-owned natural gas transmission system operator, announced in September 2020 that it had borrowed 455 million euros from banks to fund various important projects such as the Bulgaria-Serbia interconnection. Bulgartransgaz has signed loan agreements with ING Bank, European Citibank, Bulgaria Raiffeisenbank, UniCredit Bulbank, International Economic Cooperation Bank, European Bank Bulgaria, DSK Bank, and a consortium composed of the state-owned Bulgaria Development Bank and International Investment Bank.

Serbia plans to complete the construction of a natural gas pipeline with Bulgaria by 2023

On January 20, 2020, Serbian Energy Minister Zorana Mikhailovich stated that Serbia is expected to complete its natural gas interconnection with Bulgaria in early 2023.

Mikhailovich said: "The construction of the Internet will last for one and a half years. By early 2023, Serbia will be connected to Bulgaria through the Nis-Dimitrovgrad-Sofia pipeline, allowing us to import natural gas from other sources."

Mikhailovich said that the construction of the Serbian section of the interconnection line between Nis and Dimitrovgrad is expected to start in the summer of 2021.

The total investment in the Nis-Dimitrovgrad natural gas pipeline will reach 85.5 million euros (104 million U.S. dollars), which will be provided by pre-EU funds and loans from the European Investment Bank.Editor/Huang Lijun