site.btaBulgartransgaz CEO: Demand for Natgas Will Increase Resulting in Investment Opportunities

Bulgartransgaz CEO Vladimir Malinov, who participated in the 10th edition of the Delphi Economic Forum here on Thursday, said that demand for natural gas will increase significantly in the coming years, which will open up ample space for future investment in the region towards exploration and production.

During the panel entitled "Energy Security: The role of Connectivity in a Shifting World," Malinov pointed to two factors that he believes will support growth in gas consumption in the future. He added that the green deal will be approved in the Balkan region, which means that in the whole Balkan region, including Bulgaria, coal power plants will have to be replaced.

According to the former minister of energy, while renewable energy sources will not be enough, natural gas-fired power plants will be needed to balance the electricity system.

Another prominent factor supporting Malinov's forecast is Ukraine's recovery after the war, which will increase demand for natural gas. "The terrible war in Ukraine will end, it will not last for decades. I believe it will end even this year," he stated.

He quoted data which suggested that even today Ukraine consumes 21 billion cubic metres of natural gas, with a significant drop in consumption of over 60% since before the war, when it reached 45 billion cubic metres.

He said that based on these two factors, demand for natural gas would increase, opening up space for all players in the market, including Chevron's interests in the region, which may be formed by the gas deposits in the Black Sea.

Malinov suggested that big players on the market have a renewed interest in investing in research. He added that the work on infrastructure development should continue, since the region should stay competitive. "Because other regions in Europe are also working and will fight with us for the same market," he emphasized.

According to Malinov, competitive prices must be achieved in the region by lowering the rate of logistics costs.

Malinov said that regional cooperation between Greece, Bulgaria and Turkiye is essential, as these countries have a natural monopoly and geopolitical advantage to increase the energy security of the whole region.

He concluded that the relevant parties should not base their actions on the interests of individual countries but should look beyond the region and think on a global scale about the problem of energy security.