Russian president Vladimir Putin is expected to sign the agreement for South Stream gas pipeline during his visit to Bulgaria on January 17 and 18 2008.

The South Stream gas pipeline, to be built by gas giants Gazprom of Russia and ENI of Italy, will deliver Russian gas to Austria, through its northern arm, and to Italy, through its southern.

South Stream pipeline will be 900 km long and its annual capacity is expected to be at least 30 billion cu m of gas. The project will cost between 10 and 12 billion euro.

Russian gas supplier Gazprom and Italian oil and gas corporation ENI had signed an agreement on the construction, Pari daily said.

In early November 2007, Bulgarian Economy and Energy Minister Petar Dimitrov and his Russian counterpart Viktor Khristenko signed in Moscow a joint application for the construction of the new pipeline.

If Bulgaria were to take part in the project, it could possibly pocket between $250 and 400 million (167.9 to 268.7 million euro) per year in transit fees. Additionally, the country could receive stock share and part of the gas transported, but this was a matter of further negotiations between the partners, Pari said.

Bulgaria's benefits from the project were disputable, Pari said, quoting legal experts who said that under local legislation, all gas pipelines on Bulgarian territory were public state property, suggesting that state-owned Bulgargaz would have to invest a significant amount of money in the construction of the pipeline.