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Home White papers

Bulgaria in talks with Turkey on long-term gasoline deal

by manusohal
January 23, 2023
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Bulgaria in talks with Turkey on long-term gasoline deal

SOFIA, Dec 23 (Reuters) – Bulgaria’s interim power minister is in Istanbul on Friday for talks he hopes will result in a deal this month on long-term entry to liquefied pure gasoline (LNG) terminals in neighbouring Turkey and the transit of the gasoline to its border.

The chief executives of Bulgaria’s state gasoline firm Bulgargaz and gasoline community operator Bulgartransgaz are additionally participating within the talks as Bulgaria seeks new sources of gasoline.

Russia, which lined over 95% of the Balkan nation’s gasoline wants, minimize off deliveries to Bulgaria in April after Sofia refused to pay for them in roubles.

An power ministry spokesman stated interim minister Rossen Hristov and the chief executives flew to Istanbul late on Thursday.

Hristov instructed reporters earlier than leaving that talks between Bulgaria’s Bulgargaz and Turkey’s Botas had been advancing quick and he hoped a deal could possibly be reached this yr.

“We’re holding talks to order capability of 1 billion cubic metres (bcm) of gasoline per yr on Turkish LNG terminals and for the transit of the gasoline by way of Botas community to our border,” Hristov stated.

“This is essential, as a result of we’ve got sufficient presents for LNG cargo shipments. What we don’t have is someplace to off-load them,” he stated.

“We’re firmly dedicated to slicing our dependence on Russia,” he added.

Bulgaria needs to e book capability at Turkish terminals by way of 2036 to import 1 bcm of LNG gasoline a yr. The capability for 2023 will probably be smaller, as Bulgargaz has already booked slots for a number of months at a Greek LNG terminal.

A capability and transit take care of Botas would permit Bulgargaz to seal its personal gasoline import contracts with U.S. or European LNG producers and minimize reliance on Russian gasoline, Hristov stated.

To attempt to acquire higher costs, he stated Bulgargaz might also be part of Botas’ already superior talks with main U.S. and European LNG producers.

At current, the European Union nation imports 1 bcm of gasoline a yr from Azerbaijan and covers the remainder of its wants, about 3 bcm per yr, by way of LNG imports from neighbouring Greece.

Underneath the power ministry plans, Bulgaria will cowl a 3rd of its gasoline wants with LNG gasoline imports by way of Turkey, one third by way of the LNG terminal close to the Greek metropolis of Alexandroupolis which ought to grow to be operational in 2024 and one third with Azeri provides. (Reporting by Tsvetelia Tsolova; modifying by Barbara Lewis)

 

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