(ANSA) - TRIESTE, 20 GEN - Bulgaria and Serbia Energy ministers signed a memorandum of understanding for the construction of the interconnector pipeline between the two countries. Sofia and Beograd agreed to start the construction of the respective parts of the pipeline by May 2019, so the connection can be in place by the end of 2020, Bulgaria's energy ministry said.

The project was a key component of Bulgaria's efforts to implement the goals of the European Union's energy strategy to ensure secure deliveries, diversify sources and routes. Serbia would receive European funding to build its part of the connection in 2018 (60 million, the director of the Serbian gas company said), while Bulgaria has allocated 45 million euros for the Bulgarian part through the "Innovation and Competitiveness" operational program.

The pipeline will be 62 kilometers long and will stretch from Bulgarian capital city of Sofia to Nis, in southern Serbia.

Building gas connections with its neighbouring countries is a key part of Bulgaria's strategy to become a Balkan regional energy hub. Bulgaria has already completed work on its gas interconnector with Romania.

A future interconnector with Greece is another key element of Sofia's strategy to diversify energy sources and reduce reliance on gas imports from Russia, which now account for more than 80% of domestic consumption.

Serbia has high expectations of the joint project with Bulgaria after Russia cancelled the South Stream pipeline in 2014, one of the projects emerging from the Serbian-Russian Energy Agreement signed in 2008. (ANSA).