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Bulgaria and Turkey signed a long-term settlement on Tuesday giving Bulgaria entry to Turkey’s LNG terminals by way of Turkey’s pure gasoline transmission grid.
The 13-year deal was signed by Bulgaria’s Bulgargaz EAD and Turkey’s Botas Petroleum Pipeline Co. It might permit Bulgaria to import as much as 1.5 billion cubic meters (Bcm) of gasoline yearly from Turkey, or roughly 53 Bcf, assembly almost half of Bulgaria’s annual gasoline demand.
Because of the settlement, Bulgaria would now not want Russian gasoline imports and would reap the benefits of Turkey’s spare liquefied pure gasoline capability. It might additionally assist to diversify southeastern Europe’s gasoline provide combine.
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“Due to this settlement we are actually capable of buy gasoline from all worldwide producers and unload it in Turkey, the place it’s most handy for Bulgaria logistically,” mentioned Bulgaria’s interim Vitality Minister Rosen Hristov on the signing ceremony.
“The settlement is vital for growing the safety of deliveries within the southeastern Europe area,” mentioned Turkish Vitality Minister Fatih Donmez. Donmez mentioned Turkey’s community presently acquires gasoline from 15 nations.
“These modifications are additionally vital for regional vitality safety,” senior researcher Marco Giuli, of the Brussels Faculty of Governance in Belgium, informed NGI.
Earlier than Russia invaded Ukraine in February 2022, Bulgaria relied on Russian gasoline provides to fulfill 95% of the nation’s 3 Bcm/12 months demand.
Bulgaria was severely hit by the disruption of Russian gasoline provides in 2009, Giuli defined and was the “first nation hit by Russia’s selective interruption of provides within the spring of 2022.”
Gazprom reduce off deliveries to Bulgaria in April final 12 months after Bulgaria refused to pay for deliveries in rubles. It was pressured to search for various suppliers.
The Turkey settlement would full Bulgaria’s phase-out of Russian gasoline imports, Giuli mentioned.
“Bulgaria will now have entry to LNG provides by way of the Alexandropoulos terminal in Greece, gasoline from Azerbaijan by way of the Interconnector Greece-Bulgaria pipeline and LNG provides from Turkey,” he added.
Bulgaria will purchase LNG to be unloaded in Turkish LNG terminals, after which delivered by way of the Botas gasoline grids to the Bulgargaz community.
Hristov mentioned Bulgaria’s lack of infrastructure for loading LNG could be resolved below the deal. Turkey has additionally provided Bulgaria the choice to affix negotiations for LNG provides from the US and Norway, and from different LNG producers.
Turkey operates 4 LNG terminals. A fifth, new floating storage and regasification unit (FSRU) in northwestern Turkey’s Gulf of Saros, is below building close to the southern space of Bulgaria the place Turkey and Bulgaria’s gasoline grids join.
Bulgaria might import as much as 1.5 Bcm below the brand new deal, however plans to ebook round 1 Bcm of capability this 12 months on the Turkish LNG terminals. Hristov mentioned Bulgargaz has already gained tenders for slots on the Greek Revithoussa terminal over the following few months.
The cope with Bulgaria is one other step in the direction of Turkey’s goal to change into a regional gasoline hub, with Russia as a possible accomplice. In one other deal concluded in December, Romania agreed to import gasoline from Azerbaijan by way of Turkey.
Though Hristov reportedly mentioned Bulgaria can’t management what gasoline enters the nation from Turkey, the Bulgarian authorities plans to make sure agreements with future gasoline suppliers don’t embody Russia.
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