Bulgarian gas company Bulgargaz signed a long-term deal with Turkish gas company Botas on Tuesday, giving it access to Turkey’s gas network and its liquefied natural gas (LNG) terminals, Reuters reported, citing News.ro.
Bulgaria has been almost entirely dependent on Russian gas but is looking for alternatives after Moscow cut off supplies in April over Sofia’s refusal to pay in roubles.
Under the new 13-year agreement, Bulgargaz can use Turkish LNG terminals to supply gas to be transported through the Botas gas network to Bulgaria.
“Thanks to this agreement, we provide the opportunity to buy gas from all world producers and unload it in Turkey, which is the best for Bulgaria from the point of view of logistics,” said the acting president. Minister of Energy Rossen Hristov.
His Turkish counterpart, Fatih Donmez, said the deal would allow Bulgaria to transport about 1.5 billion cubic meters (billion) of gas a year and help improve security of supply to southeastern Europe.
Hristov said Bulgaria wants to reserve capacity of about 1 billion cubic meters of gas per year at Turkish LNG terminals and enter into import agreements with European and American LNG producers.
Orders for 2023 will be smaller as Bulgargaz already won tenders for slots at Greece’s Revithoussa LNG terminal a few months ago.
Bulgaria currently covers about a third of its annual gas needs by importing 1 billion cubic meters of Azerbaijani gas and commissions traders to supply the rest through Greece.
Energy expert and former Bulgarian ambassador to Moscow Ilian Vasilev said the new capacity reservation would provide an alternative to the busy Revitussa terminal, but warned that Bulgaria could end up hiding Russian gas imports if it also decided to buy from Botas.
Turkey imports Russian gas, and Moscow has proposed creating a hub for Russian gas in Turkey, which could theoretically allow Moscow to mask its exports with fuel from other sources.
Hristov said Bulgaria cannot control what gas will go to Bulgaria, but Sofia will make sure it signs contracts for non-Russian LNG.
Source: Hot News
Mary Robinson is a renowned journalist in the field of Automobile. She currently works as a writer at 247 news reel. With a keen eye for detail and a passion for all things Automotive, Mary’s writing provides readers with in-depth analysis and unique perspectives on the latest developments in the field.