Caretaker Energy Minister seeks renegotiation between Bulgargaz and BOTAŞ

Bulgargaz is effectively bankrupt, caretaker Minister of Energy Traycho Traykov announced before Bulgarian National Radio (BNR). He cited unfavorable market conditions, the loss of significant market share, and burdensome contractual relations as the main reasons. According to him, the company is also weighed down by social commitments, including natural gas supplies to district heating companies, which further strain its financial balance.

The only reason the enterprise has not been restructured or shut down is that it is a party to the highly advantageous contract for Bulgaria for the import of Azerbaijani gas.

At present, Bulgaria is not making payments under the contract with the Turkish state gas company BOTAŞ, Traykov confirmed. He stated that there are ideas to amend the agreement so that it becomes financially neutral or even profitable, adding that talks with Turkey are forthcoming in the context of the EU’s full termination of Russian gas imports by 2027, which will create new opportunities for Bulgaria in the region.

Regarding the derogation for the Lukoil refinery expiring at the end of the month, the minister said its extension is not guaranteed by the United States, but is “very likely.”

Edited by Ivo Ivanov