site.btaUPDATED PM Questions if Short-Term Cabinets Should Take Long-Term Decisions after Agreement with Energy Giant BOTAS
Prime Minister Rosen Zhelyazkov, who spoke at the National Conference - Compass 2025 here on Tuesday, said that the interconnection agreement signed by Bulgarian state-owed natural gas supplier Bulgargaz and Turkish energy company BOTAS in early 2023 raises the question of to what extent long-term decisions should be made by governments with very short terms of office.
Zhelyazkov said: "The public debate surrounding the BOTAS agreement is important, because it has become overly politicized and burdened by the inability to make specific and comprehensive decisions regarding its implementation, amendment, or termination." He said that the problem with the contract with BOTAS is not only financial but raises fundamental questions and continued: "This agreement raises the question of to what extent long-term decisions should be made by a government with a very short term in office – for a full 13 years ahead. In its potential, with the overall escalation, the agreement would cost the state around BGN 6 billion. When considering its debt potential, the question of what its revenue potential is should be asked. The main question is to what extent the State's interests are protected, not only at the moment, but throughout the entire life cycle of the agreement."
The Prime Minister said that the matter should not be reduced to political debate alone but requires a professional approach and expert solutions. He added: "We have placed the future of Bulgargaz on one side of the scales and the way the country's economy functions through political decisions on the other. We need to look for sustainable solutions with long-term logic, not short-term political moves."
According to Zhelyazkov, the right policies are the foundation of sustainable development in the sector and a prerequisite for an attractive investment environment. The Prime Minister stated that energy is no longer just a resource but the new currency of global politics. He concluded: "The main question is to what extent the State's interests are protected throughout the entire life cycle of long-term contracts."
On January 3, 2023, the Bulgarian state-owed natural gas supplier Bulgargaz and Turkish energy company BOTAS signed an interconnection agreement, under which the Bulgarian side booked capacity of 106.4 GWh/day on the Turkish LNG regasification terminals and agreed to pay for this BGN 1 million (EUR 512,000) daily until 2035. At present, Bulgargaz does not import gas under the agreement with BOTAS, and in early May its arrears to the Turkish company approximated BGN 300 million. If the 13-year take-or-pay agreement is rescinded, the Bulgarian company will be liable for close to BGN 3 billion in damages.
In December 2023, the MPs established an ad hoc committee of inquiry to look into the matter. On April 11, 2024, the committee decided to refer the matter to the prosecution service.
/RY/
Additional
news.modal.image.header
news.modal.image.text
news.modal.download.header
news.modal.download.text
news.modal.header
news.modal.text