The contract with the Turkish company Botaş is for infrastructure usage, for supply of liquefied natural gas (LNG) and is of strategic importance. This was said by the acting Minister of Energy Rosen Hristov during his hearing in the Committee on Energy in the National Assembly. The agreement has a term of 13 years. It enables the transfer of 1.5 billion cubic meters of gas annually between the two countries during this period. Bulgaria state-owned company Bulgargaz EAD gets access to the gas transmission infrastructure of the Turkish state energy company Botaş. In addition to the gas pipelines, there are also 2 LNG terminals and 2 FSRU facilities at the disposal of the Turkish company.
“We are talking about reserving terminal capacity for LNG, regasification and transit through the gas infrastructure of Botaş and delivery to Bulgarian territory,” Hristov specified. “All speculations that this contract is for the purchase of Russian gas are false,” he stated. In this regard, he explained that the agreement with the Turkish Botaş is essentially identical to the one Bulgaria has with the Greek side for reserving the LNG terminal in Revitusa. Similar is the agreement to reserve capacity at the terminal under construction in Alexandroupolis.
At the same time, the European Federation of Energy Traders (EFET) expresses concern about the agreement between Bulgargaz and Botaş. The main problem is that the contracted capacity is not offered on the market and preferential access appears to have been granted to Bulgargaz. This limits access to the Bulgarian gas market, especially given the suspension of the gas release program. Also, according to EFET, the agreement is not accompanied by a separate interconnection agreement between Bulgartransgaz and Botas. EFET is asking the European Commission, together with the Bulgarian and Turkish authorities, to investigate whether the process complies with EU rules. EFET calls on the Bulgarian authorities to provide clarity to the market, and on DG ENER together with DG COMP to further look into, whether the intention under the long-term agreement is for the IP in question to be used to the benefit of all gas market participants beyond Bulgargaz. Denying and discriminating over access to gas infrastructure and transmission capacities to the benefit of selected network users goes fundamentally against the CAM NC and Art. 102 of TFEU and risks hindering effective competition on the Bulgarian wholesale market.
EFET’s position is published at:
https://www.efet.org//files/documents/230123%20TF%20CSEEG%20LETR%20BULGARIA.pdf
