site.btaUPDATED After Competition, Bulgargaz Picks BOTAS as June Supplier of LNG from Non-Sanction Countries

After a competition, Bulgaria has picked BOTAS of Turkiye as the supplier of liquefied natural gas (LNG) from non-sanction countries in June, Economy Minister Vladimir Malinov told a news briefing in Sofia Thursday. The competition for supply of LNG to the platforms in Turkiye under a long-term agreement with BOTAS attracted 13 companies and ten of them submitted offers, among which BOTAS' was picked after all were assessed.

For the capacity, which is reserved under the agreement signed between Bulgargaz and Botas at the end of 2022, the Turkish company will also make a discount for the price of the reserved capacity, which will lead to savings of costs for June by Bulgargaz in the amount of more than BGN 11.5 million, said Malinov.

He added that later on Thursday the Bulgargaz management will announce two tenders for sale of capacity. 

The tenders

The first tender is for the provision of regasification, storage and transportation services of LNG supplied by the participants at terminals in Turkyie to Virtual Trading Point (VTP) Bulgaria. There are two options for the service: for a period of 6 months starting from July 1, 2024 or for a year starting from January 1, 2025 for the next 5 years.

The second tendering procedure is for the transfer of rights and obligations under the agreement concluded with the Turkish company Botas, which include the service of regasification, storage and transmission of LNG delivered by the participants at Turkish terminals to the point of interconnection Strandja 1/Malkoçlar. Bulgargaz offers the participants in the procedure three options regarding the period for which the rights and obligations are transferred.

Bidders are required to have experience in supplying LNG (total LNG supplied must be at least 6,800,000 MMBtu over the last three years). Among the conditions for participation in the procedure is that the natural gas must be sourced in countries which are not under sanctions, embargoes or any trade restrictions. Ownership of the companies must be clear, with good reputation and financially stable.
The bids will be opened and assessed by committees appointed by order of the Executive Director of Bulgargaz.