Bulgarian state-owned gas transmission operator Bulgartransgaz has launched a tender to secure a €102 million loan to help fund the expansion of its pipeline network. The financing is intended to support the development of the Vertical Gas Corridor, a key project designed to connect Greece with Central and Eastern Europe and boost energy connectivity across the region.
The Vertical Gas Corridor was first initiated in 2016 by Greece, Bulgaria, Romania, and Hungary to enable bidirectional gas flow between these countries. Ukraine, Moldova, and Slovakia joined the partnership last year, extending the project’s reach and strengthening its regional impact.
Bulgartransgaz is inviting banks and financial consortia to submit proposals for a 5-year loan. The financing will be based on the 1-month EURIBOR rate plus a margin to cover all associated fees and charges. Repayment will be made in equal monthly installments, starting in early 2027.
To back the financing, a state guarantee has been approved, and additional guarantees may be issued or ratified by the National Assembly for loans of up to €320 million related to the project. Bidders must state the amount they are willing to provide, starting from a minimum of €25 million, and the margin they propose. The deadline for submission of offers is 4 July.
The Vertical Gas Corridor aims to boost energy security by strengthening the flow of natural gas from diverse sources — including the USA, Azerbaijan, and Egypt — to Central and Eastern Europe. As part of this initiative, Bulgartransgaz last year signed two major contracts, worth nearly €250 million in total, with consortia led by Hill International (USA) and Glavbolgarstroy (Bulgaria) to implement key components of the pipeline’s expansion.
