site.btaUPDATED Contract with Turkish Company BOTAS Decapitalizes Supplier Bulgargaz, Energy Minister Says

The contract with the Turkish company BOTAS is decapitalizing the state-owned public supplier Bulgargaz, Energy Minister Zhecho Stankov told journalists at the Council of Ministers on Wednesday. The Minister noted that the contract also poses a risk to the gas supply for regional heating companies in Bulgaria. 

According to Stankov, Bulgargaz holds a 50% market share in the country and serves clients who are not among the most solvent. 

Stankov described the agreement with the Turkish company as placing Bulgaria at a disadvantage and putting the Bulgarian energy sector at risk. 

The Minister said that the agreement turns the national energy sector and Bulgargaz into the largest investor in Turkiye's gas transmission network. 

"These hundreds of millions [the Minister did not specify the currency], which have already been paid, and some of which are still outstanding as invoices because Bulgargaz does not have the funds to cover them, are only a small part of the total amount from the 13-year contract, which is over 6 billion," explained Stankov. According to him, these 6 billion will be used by Turkiye to pay Russia for the construction and completion of nuclear power plants on Turkish territory. 

Stankov underlined that Bulgargaz was a financially stable company in 2021, with annual profits of BGN 20-60 million, but now the company has been ‘brought to its knees’. 

In early 2023, Bulgaria’s state-owned gas supplier Bulgargaz signed a 13‑year take‑or‑pay deal with Turkiye’s BOTAS, reserving up to 1.85 billion cu m/year of LNG capacity via the Strandzha-Malkoclar interconnection. In July, Energy Minister Stankov said that Bulgaria signed the agreement without the need for the additional gas supply which resulted in the country running into a debt of BGN 1.8 billion as of July 2025. 

Regarding the ongoing renegotiations of the deal with BOTAS, the Minister stated that the Turkish side is insisting on receiving the expected payments under the signed contract, regardless of the discussions currently taking place. 

Stankov claimed that payments under the contract will continue until there is sufficient funding and once it runs out, decisions will have to be made on what to do next.

The Minister also called on the presidential institution to become more active in the renegotiation talks. He added that Bulgargaz is holding talks with other countries from the region on joint tenders and gas supplies through the Turkish gas transmission network, but so far none of the gas suppliers in these countries have shown any interest.