Bulgaria and Turkey are negotiating a long-term gas agreement
In order to reach an agreement this month over long-term access to LNG terminals in neighboring Turkey. And also the transit of the gas to its border. Bulgaria’s acting energy minister is in Istanbul on Friday. As Bulgaria looks for new sources, the heads of the country’s state gas company Bulgargaz. And the operator of its gas network Bulgartransgaz are also present in the discussions.
Over 95% of Bulgaria’s gas demands were met by Russia, which stopped supplying it in April after Sofia refused to pay in roubles. According to a representative for the energy ministry, temporary minister Rossen Hristov and the CEOs arrived in Istanbul late on Thursday.
Before departing, Hristov told reporters that negotiations between Turkey’s Botas and Bulgaria’s Bulgargaz were moving quickly and that he anticipated an agreement would be achieved this year. The potential of Turkish LNG facilities to store one billion cubic meters (bcm) of gas annually is being discussed, as is the transportation of the gas over the Botas network to our border, according to Hristov.
“We have a sufficient number of proposals for LNG cargo shipments, so this is quite significant. Where we can dump them is something we don’t have “said he.
Bulgaria plans to reserve space at Turkish terminals for 1 bcm of LNG imports each year through 2036. The capacity for 2023 will be lower because Bulgargaz has already reserved slots at a Greek LNG port for several months.
More about the Gas agreement
Bulgargaz could lessen its dependency on Russian gas. They can do this by entering into its own gas import agreements with U.S. or European LNG producers. Thanks to a capacity and transit agreement with Botas, according to Hristov.
He stated that Bulgargaz may also participate in Botas’ already advanced discussions with significant U.S. and European LNG producers. This in an effort to secure better rates. Currently, the member of the European Union imports 1 billion cubic meters of gas from Azerbaijan annually. With the remaining 3 billion cubic meters of gas coming from Greece. It is the next door.
According to plans from the energy ministry. Bulgaria will be able to meet a third of its gas requirements through LNG imports from Turkey. A third through the LNG terminal near the Greek city of Alexandroupolis, which is expected to be operational in 2024. Also a third through supplies from Azerbaijan.
