October 21 (SeeNews) - A consortium of Saudi-based Arkad Engineering and Construction Company and its Italy-based joint venture company Arkad ABB has started construction works on a 1.1 billion euro ($1.2 billion) gas pipeline project in Bulgaria, the government in Sofia said on Monday.
The consortium has so far completed the construction of a five-kilometre trench and has six kilometres of pipes ready for laying, the government said in a statement.
Last month, Bulgaria's gas transmission system operator Bulgartransgaz signed a 1.1 billion euro contract with the consortium for the construction of a gas pipeline, which will connect the country's existing gas transmission system to the border with Serbia, and will carry gas from TurkStream.
Earlier on Monday, Bulgaria inaugurated an 11-km gas pipeline from the Turkish border to compressor station Strandzha, which will serve as part of the extension of Gazprom's TurkStream pipeline toward Serbia, the energy ministry said. The project also included the construction of Strandzha gas metering station.
The construction of the pipeline and gas metering station is an expression of Bulgaria's commitment to retain its strategic position on the European gas market, the ministry noted.
Works on the project were completed by a local tie-up under a 27.7 million levs contract.
According to registry agency data, Stroymontazh controls 50% interest in the tie-up, Glavbolgarstroy owns a 45%, while GBS - Infrastructurno Stroitelstvo holds 5%.
The offshore section of the TurkStream pipeline stretching 930 km across the Black Sea from Russia to Turkey consists of two parallel strings with annual throughput capacity of 15.75 billion cubic metres of gas each. One string is intended for consumers in Turkey, while the second will carry gas to customers in Europe through Bulgaria.
($ = 0.8957 euro)