site.btaNatural Gas to Continue Being Key Energy Source for Southeast Europe, Says Bulgartransgaz CEO

During his participation in the 55th International Gas Conference in Hungary, the CEO of Bulgartransgaz EAD, Vladimir Malinov, said that natural gas will continue to be a key energy source for Southeastern Europe, as quoted by the company’s press centre on Wednesday. 

Malinov added that, in the context of growing electricity demand and the need for secure manufacturing capacity, natural gas is one of the possible solutions for ensuring energy stability.

At the beginning of 2025, Bulgaria reported a 5% increase in electricity demand, a trend which is expected to continue. At the same time, brown coal is becoming less competitive, leading to lower market demand for this type of production. Despite the continued development of renewable energy sources, Malinov said that the region will also need base load and peaking capacity, adding that gas-fired power plants have proven to be an effective solution for providing this. 

He stressed that infrastructure for transmitting additional quantities of natural gas from secure sources, such as the United States, must first be built to ensure the necessary conditions for implementing gas power plant projects. He gave the Vertical Gas Corridor as an example, whose construction is progressing on Bulgarian territory, as well as the increased transmission capacity from Greece to Bulgaria and from Bulgaria to Romania, which will be offered at the next annual auction.

According to him, the US strategy to increase production is making diversification of sources a reality. The entry of significant quantities of American liquefied natural gas through the Vertical Gas Corridor infrastructure, including the Alexandroupolis terminal, which has resumed operations, will enable the region to prepare for the termination of long-term Russian natural gas purchase and sale contracts over the next two years, as proposed by European regulations. Malinov added that the region continues to depend on natural gas from Azerbaijan, and that this, together with LNG from secure sources such as the US, will contribute to the creation of a stable and diversified energy system.

Regarding the project to expand the underground gas storage facility in Chiren, Vratsa Municipality, Malinov emphasized the importance of aligning investment decisions with market demands. "The difference in natural gas prices between the summer and winter months is no longer so pronounced, which raises questions about the profitability of large investments in new gas storage facilities," he said. He recalled that the storage capacity at Chiren had already increased from 550 to 650 million cubic metres and that the storage facility was currently over 80% full.