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Cabinet officials

Bulgaria's Energy Dilemma: High Payments, Unused Capacity, and Debt

Strategic Insights

— 1 min read

Bulgarian Energy Minister Zhecho Stankov has shed light on the country's energy conundrum, highlighting the significant financial burdens and unused capacity stemming from a 2023 agreement with Turkish state-owned energy company BOTAS. Under the agreement, Bulgaria pays approximately BGN 1,050,000 daily for natural-gas transmission capacity, despite using only a fraction of it. This financial commitment has led to a debt of over BGN 600 million, with the unused capacity estimated to be around 2 billion cubic meters. The minister emphasized that the country's failure to utilize the full capacity is due to a combination of factors, including the supply of natural gas from Azerbaijan and the existence of additional reserve capacities through the Alexandoupolis LNG terminal and the Greece-Bulgaria gas interconnector.

Key Takeaways:

  • Bulgaria pays BGN 1,050,000 daily to BOTAS for natural-gas transmission capacity, despite using only a fraction of it.
  • The country has paid over BGN 600 million under the agreement with BOTAS, with the unused capacity estimated at 2 billion cubic meters.
  • The price paid to BOTAS is USD 10 per MWh, significantly higher than the usual rate.
  • Bulgaria consumes approximately 3 billion cubic meters of natural gas annually, with 1 billion cu m supplied from Azerbaijan and an additional 1 billion cu m from reserve capacities.
  • The country's state-owned natural-gas company, Bulgargaz, stopped making payments to BOTAS due to a shortage of financial resources, leading to a debt of over BGN 1 billion.

Statistics:

  • Bulgaria pays approximately BGN 1,050,000 daily to BOTAS for natural-gas transmission capacity.
  • The country has paid over BGN 600 million under the agreement with BOTAS.
  • The debt of Bulgargaz is over BGN 1 billion.
  • Unused gas transmission capacity: 2 billion cubic meters.
  • Bulgaria consumes approximately 3 billion cubic meters of natural gas annually.
  • 1 billion cu m of natural gas is supplied from Azerbaijan.
  • 1 billion cu m of natural gas is supplied through reserve capacities.

Sources:

  • bTV
  • Bulgarian Energy Minister Zhecho Stankov
  • The 2023 agreement between BOTAS and Bulgargaz
  • The State National Statistical Institute of Bulgaria

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