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Azerbaijani gas to pay key role in meeting Bulgaria’s objectives of diversifying energy sources – Minister Alexander Nikolov (Interview)

Oil&Gas Materials 1 June 2022 08:00 (UTC +04:00)
Azerbaijani gas to pay key role in meeting Bulgaria’s objectives of diversifying energy sources – Minister Alexander Nikolov (Interview)
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, June 1. The interconnector Greece- Bulgaria will play a key role in meeting Bulgaria’s objectives of diversifying energy sources, energy security and independence, Bulgaria’s Minister of Energy Alexander Nikolov said in an exclusive interview with Trend.

He pointed out that the interconnector Greece-Bulgaria is a key project for the country's energy security and the entire region of Southeast Europe.

“Despite the accumulated serious delay in the implementation of the interconnector, the government has taken active steps in recent months to launch the gas pipeline, which will provide the opportunity for supplies from different regions. At the moment, the gas pipeline is at its final stage of implementation, the hydro-tests throughout the entire territory have been completed, the connection of the pipeline to the Transatlantic Gas pipeline (TAP) has been carried out, the dispatching centre of Haskovo is completed, there is progress on the reactivation of the route, which shall be carried out under local legislation.

Measurement and control systems are currently being installed and tested. The progress of the project in recent months gives us a ground for optimism that the interconnector will be physically completed by mid-year as recorded in the latest updated project schedule. In parallel, we are striving to optimize the time limits for the implementation of the necessary administrative procedures – obtaining different licences and permits – so that the commercial operation of the facility starts as soon as possible. I am confident that the interconnector Greece- Bulgaria will play a key role in meeting our objectives of diversifying energy sources, energy security and independence,” said Nikolov.

The energy minister noted that Azerbaijan is a strategic partner for Bulgaria in its efforts to guarantee energy security and independence.

“ Our two countries have established strong economic cooperation in which the energy sector is of major importance. The disruption of gas supply by Gazprom has made a priority the need to search for alternative solutions, where Azerbaijan supplies are of crucial significance.

Bulgaria has concluded a contract for the purchase of 1 billion cubic meters of gas per year from Azerbaijan, which is not yet delivered in full. In the context of the supply crisis, the government held accelerated talks with our Azerbaijan partners to purchase additional quantities. The fruitful dialogue between our two countries gives me a ground for optimism, first of all that since the beginning of July Bulgaria will receive in full the agreed quantities; and secondly, in future, these quantities can be increased,” he said.

Nikolov went on to add that as early as the start of the war in Ukraine, the current Bulgarian government predicted the subsequent limitation or suspension of gas supplies and put active efforts to increase energy security.

“Firstly, the serious delay in the construction of the interconnector Greece – Bulgaria has been overcome. The interconnector is due to be fully completed by mid-year and enter into commercial operation several months later. This pipeline provides access not only to our country, but also to the entire region, to alternative supplies from the Caspian region, the Eastern Mediterranean and others. After the start of operation of the interconnector the agreed with Azerbaijan 1 billion cubic meters of gas per year will also be delivered through this route.

You are probably aware of the decision of the Bulgarian side to participate as shareholder in the LNG terminal near Alexandroupolis, Greece. Two weeks ago, a ceremony was held to inaugurate the start of the works on the terminal which is expected to be completed by the end of next year. Although the operation of the LNG terminal is a solution to the region's energy security in the medium term, we are confident that this solution is useful and we are working actively to implement it. Thanks to these efforts, there is currently no restriction on the consumption of natural gas in Bulgaria despite the halted supplies by Gazprom,” said the minister.

Nikolov noted that Bulgaria is one of the most dependent countries on Russian energy resources in the EU.

“Before the start of the war in Ukraine, more than 90% of our country's supplies were received from one single source – Russia. Although several governments have declared in recent years that they were working actively to diversify energy sources, the military action and the suspension of supply by Gazprom have highlighted the real situation. The fact is Bulgaria has so far met its own consumption almost exclusively with Russian natural gas.

The cessation of gas supplies to our country in this serious dependence on one source, and in absolute violation of the current contract, is a serious challenge for us. At the same time, however, this is a chance for Bulgaria to break this dependence and continue to develop its energy system on the basis of transparency, diversification, competitive supply and better conditions for consumers. The government's efforts in recent months address the implementation of these objectives,” he explained.

Further, the energy minister said that Bulgaria has one underground gas storage in Chiren /UGS Chiren/.

“It serves to cover seasonal fluctuations in consumption and is one of the instruments that contribute to the security of gas supplies. During the spring season, the UGS is filled and through the autumn-winter period gas is drawn from it.

The storage capacity of natural gas in the UGS Chiren is 550 million cubic metres – approximately 1/6 of the annual consumption in Bulgaria. In order to enhance the security of natural gas supply, the storage operator – Bulgartransgaz EAD is working on a project to expand its capacity. It is planned to reach up to 1 billion cubic metres after the project is completed.

The project is of strategic importance for improving energy security, increasing competition and liquidity in the natural gas market in Bulgaria and the region. Since 2013, it has the status of a “Project of common interest” under Regulation (EU) No 347/2013. It is also a priority project under the Three Seas Initiative,” Nikolov added.

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