An expert group from various institutions will prepare a proposed intergovernmental agreement on the South Stream gas pipeline construction.

The expert group will include a deputy economy and energy minister and representatives of the Economy and Energy, Regional Development and Public Works, Foreign, Finance, Environment and Water Affairs and Administration Ministries, the Cabinet and Bulgargaz Holding.

The experts will have to give regular reports to the Cabinet on the negotiations’ stages, a Cabinet media statement said.

South Stream pipeline will transport gas from Russia to Bulgaria under the Black Sea. The gas will head to Southern Europe.

The project will turn the Bulgaria into a strategic centre for distribution of natural gas towards Europe.

It would also improve Bulgaria’s the security of Bulgaria’s energy supplies. South Stream’s capacity would be 30 billion cubic metres of gas a year, the statement said.