site.btaEnergy Market Dynamics Have Been Transformed - Bulgtransgaz CEO

Bulgatransgaz CEO Vladimir Malinov said that the dynamics of the energy market have been completely transformed, following an agreement reached in European for a full ban on imports of Russian natural gas starting at the end of September 2027, as well as the ongoing policy of the new US administration, which from its first day in office has encouraged an increase in liquefied natural gas exports.

“We anticipated such a development of the market, and that is why we have been consistently working on the implementation of the Vertical Gas Corridor as the main highway for transporting liquefied natural gas to the region. Nine gas transmission operators already participate in the project, which is of strategic importance not only for Bulgaria and Greece, but for the entire region,” Malinov said during the 25th edition of the World LNG Summit, held in Istanbul, Turkiye.

According to Malinov, forecasts show a steady increase in natural gas consumption in the region, both due to the transition to gas-fired power plants and the significant potential for building new capacities. “To meet this demand, we need modern infrastructure with sufficient capacity. LNG terminals in Greece and Turkiye provide natural access to new sources, and the logical route for transport to the region passes through Bulgaria,” he added.

Malinov called for regional-scale thinking regarding the signing of long-term contracts for the supply of liquefied natural gas. “The markets in Southeastern Europe are relatively small. If we combine our demand requests and offer LNG traders joint long-term contracts, we will achieve better prices and higher competitiveness for households and businesses throughout the region,” he said.

Malinov noted that large-scale investments in gas-powered electricity generation capacity are already being implemented in neighboring countries, and many existing coal-fired power plants will transition to natural gas. “Our analyses show that natural gas demand in the region will increase by between 20 and 30% over the next five years. This makes investments in infrastructure crucial and urgent,” he added.

On Wednesday, the EU Council and the European Parliament announced that they had reached preliminary approval on the European Commission’s proposal for a gradual phaseout of Russian gas imports over the coming months. The decision must still be formally endorsed by MEPs and EU member states so that imports of Russian liquefied natural gas can be halted from the end of next year, and imports of pipeline gas from 2027 onward.