Bulgaria has reached a key milestone in the expansion of its underground gas storage facility at Chiren, with the completion of above-ground infrastructure and the installation of new compressors, Energy Minister Zhecho Stankov announced. This upgrade will allow for the storage of larger gas volumes at a reduced cost during the spring and summer months. The newly installed compressors, which have already received a usage permit, have boosted Chiren’s capacity by 20%, increasing it from 550 million cubic meters to 660 million cubic meters. The ultimate objective is to double capacity to 1 billion cubic meters, strengthening Bulgaria’s energy security.
Meanwhile, Bulgaria is taking the lead in implementing the Vertical Gas Corridor, a strategic energy project linking Greece, Bulgaria and Romania. The first phase of construction includes a 48-kilometer segment from Kulata, at the Greek border, to Kresna in southwestern Bulgaria, raising transport capacity from 2.3 billion to 3.6 billion cubic meters. The most critical section, from Rupcha to Vetrino, will significantly expand the capacity at Bulgaria’s exit point to Romania, increasing it from 5 billion to 10 billion cubic meters.
However, Bulgaria’s state-owned gas supplier, Bulgargaz, is grappling with financial challenges, reporting a €140 million loss for 2024. One pressing issue is its long-term contract with Turkey’s BOTAS, which lacks a cancellation clause and is subject to price indexation. As a result, Bulgaria will pay an additional €10 million in 2025. By March 31, Bulgargaz is due to pay BOTAS approximately €125 million, an obligation it currently cannot fulfill. Minister Stankov has emphasized that renegotiation is the only viable option. Discussions have already begun, with Bulgargaz and Bulgartransgaz authorized to prepare the necessary documentation for negotiations.
These developments highlight Bulgaria’s commitment to enhancing energy security and regional connectivity while navigating financial and contractual challenges in the gas sector.
