Bulgaria investing over €295 million in key pipeline for Balkans

Bulgaria has decided to invest more than €295 million in the so-called ‘Vertical Corridor,’ a key initiative between seven Balkan countries’ gas transmission operators to reduce reliance on Russian gas.

This is the value, excluding value-added tax, of a public tender launched in connection to the project that aims to extend the existing gas connections between Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova.

The tender was launched at the request of Bulgartransgaz Executive Director Vladimir Malinov and was implemented following a decision of the National Assembly on 14 March, Bulgartransgaz said on Wednesday.

“After the probable termination of the transmission of natural gas from Russia through Ukraine from the beginning of 2025, the vertical gas corridor through Bulgaria will be the only project that can ensure both the necessary transmission of liquefied gas and the continued operation of the gas transmission network and underground gas storage facilities in Ukraine,” Malinov said in February.

This project aims to increase the natural gas transmission capacity at the interconnection points Kulata/Sidirokastro in the direction from Greece to Bulgaria and Negru Voda/Kardam from Bulgaria to Romania. The US also touted the importance of this project.

The company said the expansion of Bulgartransgaz’s gas transmission infrastructure will allow the ‘Vertical Corridor’ to achieve its objectives of diversification and improved supply security by transporting additional volumes of natural gas from south to north.

This is the first public procurement to be carried out for the project.

Malinov said a month ago, “This strategic route will guarantee access to the additional quantities of liquefied natural gas for consumers in Eastern Europe.”

“With the implementation of the projects to increase the capacities from Greece to Bulgaria and from Bulgaria to Romania, a technical possibility will be provided to transfer the additional quantities of natural gas, including from the Southern Gas Corridor and liquefied natural gas, with maximum utilisation of the possibilities of the existing infrastructure,” he added.

The Bulgarian authorities and the EU Commission discussed the possibility of financial support from the Commission for the implementation of the vertical corridor projects. The total indicative value of the two Bulgartransgaz Vertical Gas Corridor projects is €300 million, excluding VAT.

“We are looking for options for financing the projects, including increasing the company’s capital, debt financing, using state guarantees, and European financing,” Malinov said in February.

(Krassen Nikolov | Euractiv.bg)