site.btaMPs Argue Deal between Bulgaria’s Gas Supplier, Turkish Energy Company Does Not Benefit Bulgaria

During a hearing of persons related to the gas agreement between Bulgaria’s State-owned gas supplier Bulgargaz and the Turkish energy company BOTAS in Parliament on Thursday, GERB-UDF MP Krasen Krastev stated that the agreement is not beneficial to Bulgaria and lacks economic logic. Asked by Krastev whether he would sign the same contract again, if he had chance, former caretaker energy minister Rossen Hristov answered affirmatively.

Hristov was one of several people, involved with the deal that Bulgargaz and BOTAS signed in January 2023, who participated in a hearing on the agreements concluded with BOTAS, their impact on Bulgargaz, the need and possibilities for renegotiation of the terms, as well as Bulgargaz' inability to make payments under the agreement in its current form.

Hristov called the hearing a political farce. He argued that this contract was part of an overall strategy to supply non-Russian gas to Bulgaria and added: "I maintain that this is the best, if we want Bulgaria to be independent from Russian gas supplies, and I would again support such a contract." According to the former minister, Bulgaria should not give up on this contract, because strategically it was concluded correctly.

Former Bulgargaz CEO Deniza Slateva, who headed the Bulgarian gas supplier at the time when the contract was concluded, stated that the contract was strategically important to Bulgaria.

Continue the Change - Democratic Bulgaria MP Radoslav Ribarski said that even though natural gas has not been transited through Ukraine for five months, the transmission capacity remains unused.

Hristov's response was that the treaty is not being used because "we are not offering people to use it". He added that while Hungary expressed interest during President Rumen Radev's visit to Budapest, the previous regular government did nothing. "The agreement is not being used quite deliberately," Hristov concluded.

Minister of Energy Zhecho Stankov said that at the time when the agreement was signed, it was obvious that Bulgargaz has a huge surplus of natural gas. Since 2021, the company has lost 50% of its market share. He stated that this agreement is causing Bulgargaz to suffer additional and significant financial bleeding.

The Minister reported that he has discussed potential natural gas supply with colleagues of his from Hungary, Moldova, Slovakia, and Austria. "These countries however have shown us calculations suggesting that gas supply through Germany is much cheaper than what Bulgaria offers through the contract with BOTAS, even if we lowered the price by 30%."