Bulgaria’s state gas pipeline operator Bulgartransgaz has signed an engineering, procurement and construction contract with the joint venture between Saudi Arabia's Arkad Engineering & Construction and Milan-based Arkad-ABB to lay a transit pipeline for Russian gas.

Under the terms of the contract, Arkad has committed to build the first 308-kilometre section of the pipeline running from the border between Bulgaria and Serbia to a gas compression station near the village of Polski Senovets, within a 250-day timeframe.

The remaining 166-kilometre segment of the pipeline from Polski Senovets to the border between Bulgaria and Turkey, should take up to 615 days to complete, according to Bulgartransgaz.