Bulgaria’s caretaker Energy Minister, Traycho Traykov, has indicated that the government is contemplating a renegotiation of its gas supply agreement with Turkey’s state-owned pipeline operator, BOTAS. This move comes as both parties explore the possibility of a revised arrangement that could be more beneficial for Bulgaria, particularly in light of current financial challenges.
The existing agreement was established in early 2023, during a time when Bulgaria required urgent access to Turkish gas infrastructure. However, Minister Traykov has pointed out that the financial terms of the contract have become increasingly burdensome for Bulgaria. The country is currently facing payment obligations that amount to approximately $500,000 per day, which it has struggled to meet fully.
In discussions with Turkey’s deputy Energy Minister, Traykov expressed hope that ongoing negotiations could lead to a mutually acceptable solution. He emphasized the importance of addressing the problematic aspects of the financial arrangement while maintaining the partnership’s overall concept.
The contract stipulates a reservation of up to 1.85 billion cubic meters per year of LNG capacity via the Strandzha-Malkoclar interconnection, operating under take-or-pay conditions. As Bulgaria seeks to stabilize its energy supply and optimize costs, these renegotiation efforts reflect broader trends in regional energy dynamics and the need for adaptive strategies in response to evolving market conditions.
