When SOCAR expected to make first investments in Bulgaria’s gas distribution? (Exclusive)

Oil&Gas Materials 18 February 2019 11:15 (UTC +04:00)

Baku, Azerbaijan, Feb.18

By Leman Zeynalova – Trend:

Azerbaijan’s state oil company SOCAR is expected to start the first investments in Bulgaria’s gas distribution in the second half of 2019, Bulgarian Energy Minister Temenuzhka Petkova said in an exclusive interview with Trend.

“As you know, Azerbaijan's interest in the gasification of Bulgarian cities was announced at the meeting in Baku between Prime Minister Boyko Borissov and the President of Azerbaijan Ilham Aliyev in January 2018. The Azerbaijan state oil company has successfully invested in this sector in Georgia and we will be pleased if the company transfers its experience in Bulgaria as well,” she said.

Petkova went on to add that in 2018, Bulgarian side held fruitful discussions and conversations with SOCAR representatives on the opportunities to participate in the development of the gasification in Bulgaria.

In particular, it is about investments by the Azerbaijan state oil company in gas distribution and mainly in household gas supply, which has a huge potential for development in Bulgaria, added the energy minister.

“SOCAR is currently studying Bulgarian gas distribution sector. In this regard, at the end of last year, SOCAR announced a procedure for preparing a feasibility study on investment opportunities in the gas distribution sector in Bulgaria. In the case of positive results of the feasibility study, in the second half of this year, we expect SOCAR to start the first investments in the gas distribution in Bulgaria,” said Petkova.

Back in 2015, the Bulgarian government submitted a package of projects on energy cooperation to Azerbaijan. In particular, the Azerbaijani side was offered to participate in the construction of filling stations, investing in the construction of oil and gas storages, oil refineries.

Bulgaria expects to receive Azerbaijani gas through IGB, a gas pipeline that will be connected to the Trans Adriatic Pipeline (TAP).

IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is expected to be connected to TAP via which gas from the Shah Deniz field will be delivered to the European markets.

The initial capacity of IGB will be 3 billion cubic meters of gas.


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