The South Stream project provided for the construction of a new gas pipeline system for natural gas supplies from the Russian Federation to the European market with technical capacity of 63 bcm per year. The off-shore gas pipeline through the Black Sea was planned to start from Beregovaya compressor station on the Russian coast and to come out on the Bulgarian coast - Pasha dere area, to the south of Galata residential district, Varna. A north-western route in the direction of Serbia was considered for the on-shore gas pipeline on the territory of Bulgaria. The gas quantities in south and south-western direction to Greece, Turkey and Macedonia were planned to be transported through the existing gas transmission network. The project was implemented by a joint venture South Stream- Bulgaria AD with shareholders Bulgarian Energy Holding EAD (50%) and OAO Gazprom (50%).
In September 2015 PAO Gazprom made a proposal related to termination of the project. In connection with this proposal negotiations are held between BEH EAD and PAO Gazprom for overall settlement of the relations under the project.
Currently project activities have been terminated as per a decision of the shareholders. Based on a publicly announced procedure a Contract has been concluded between South Stream-Bulgaria AD and Bulgartransgaz EAD for sale of some assets of South Stream Project.