LNG, Natural Gas, Electric Power, Nuclear

January 17, 2025

New Bulgarian energy minister Stankov pledges to ensure energy security

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HIGHLIGHTS

Stankov takes over from Vladimir Malinov as energy minister

Also eyes measures to stabilize, develop energy sector

Gas imports from Azerbaijan hit by Shah Deniz outage

Bulgaria's new energy minister Zhecho Stankov has pledged to prioritize the country's energy security alongside plans to stabilize and further develop the energy sector.

Stankov was appointed to the post of energy minister in the new Bulgarian government led by Rosen Zhelyazkov -- who took office this week after months of negotiations.

In a meeting Jan. 16 with his predecessor Vladimir Malinov, Stankov outlined the main priorities in the work of the energy ministry.

"Among them are the efforts to guarantee the country's energy security, with an emphasis on the stability and sustainability of the energy infrastructure," the ministry said in a statement.

It added that Stankov would prioritize measures to stabilize and develop the Bulgarian energy sector, including through the construction of new nuclear capacity and gas-fired power plants.

He also emphasized the need for coal-fired power plants in the country to ensure energy stability.

The ministry will also work to create conditions for attracting investments in the energy sector, it said.

"The accelerated integration of European legislation related to renewable energy is also among the priorities indicated by the minister," it said.

Gas supply

Stankov has taken office at a challenging time for Bulgaria, which saw its imports of gas from Azerbaijan suspended earlier this month due to technical issues at the Shah Deniz gas field.

Bulgaria's state-owned gas importer Bulgargaz said on Jan. 9 that imports from Azerbaijan had been suspended on Jan. 7, but that it had been able to replace it with alternative gas under an agreement with Turkey's Botas.

Bulgargaz said the interruption had not resulted in additional costs for the company to purchase replacement gas.

"Thanks to the flexibility under the agreement with Botas, within a few hours, Bulgargaz provided replacement quantities of gas," it said.

Bulgargaz and Botas announced a 13-year agreement in January 2023 under which Bulgaria would be able to import up to 1.5 Bcm/year of gas via Turkey.

Bulgaria had already been looking to diversify its gas imports away from Russia before Gazprom Export halted supplies to Bulgargaz in April 2022 due to Sofia's refusal to pay under Moscow's ruble-based payment system.

As well as imports from Azerbaijan and the deal with Botas, Bulgaria also turned increasingly to LNG supplies via Greece.

State-owned grid operator Bulgartransgaz holds a 20% stake in the operator of the newly operational Alexandroupolis floating LNG import terminal, while Bulgargaz has booked 1 Bcm/year of regasification capacity at the terminal.

Gas from the first commercial LNG cargo sent to Alexandroupolis in October last year was consumed in Bulgaria, marking a new chapter in the country's gas supply security, then minister Malinov said.

Bulgargaz secured the 1-TWh (0.1 Bcm) cargo through a tender that was won by France's TotalEnergies.


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