Varna gas distribution

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Bulgarian gas company Varnagas was awarded a 10-year licence to supply gas to the city of Varna, on the northern Black Sea coast of Bulgaria in July 2003. In March 2008, the license was extended until 2039. Varnagas was set up as a joint venture by the Bulgarian gas company Overgas (66%) and the municipality of Varna (34%). The main shareholders in Overgas were Russian Gazprom with 50%, Overgas Holding with 24.50% and Creditbank with 5%. Total 27 million euro (US$36 million) were to be invested in the development of the gas supply network in the city. A total of 4.3 million euro (US$5.3 million) were invested in the gasification of Varna in 2004 for the construction of a gas supply grid of 55 km covering more than 3,000 consumers in the Black Sea city and 5.3 million Bulgarian levs (US$3.5 million) were expected to be invested in 2005.