site.btaUPDATED Chiren Gas Storage Facility's Capacity Up 20% after Installation of New Compressors

One of the key steps in the underground gas storage expansion at Bulgaria’s Chiren gas storage facility, the construction of its above-ground infrastructure and the installation of new compressors, has already been completed, Minister of Energy Zhecho Stankov said in an interview for the Bulgarian National Television on Monday morning. This allows larger quantities of natural gas to be pumped at a lower cost during the spring-summer season. A permit of use has already been issued for the compressors, which increases the Chiren's previous capacity of 550 million cubic metres by 20%.

Chiren's storage capacity should be increased to 1 billion cubic metres, as this would guarantee the country's energy security, said Stankov.

The Minister said that he has not been informed of problems with the appointment of Vladimir Malinov as Bulgartransgaz CEO. "There is no way for the minister to interfere there, because this is an independent transmission operator," he added.

Commenting on allegations that the Chaira pumped-storage power plant is not working, the Minister reported that the plant's second hydro unit is currently operational.

Stankov said that Bulgaria will be the first country to start real work on the construction of the Vertical Gas Corridor, infrastructure that should connect Greece, Bulgaria, and Romania. The first phase includes a 48-kilometre stretch from the border with Greece at Kulata to Kresna, Southwestern Bulgaria, which will allow an increase in capacity from 2.3 to 3.6 billion cubic metres (bcm). The more important part of the project covers the route between Rupcha and Vetrino, which will expand the capacity of the exit point at the Bulgarian-Romanian border from 5 bcm to 10 bcm.

The Minister said that Bulgargaz, the largest Bulgarian natural gas distribution company, is in a difficult financial situation, as it registered a loss of BGN 280 million for 2024. Regarding the contract with the Turkish energy company BOTAS, he said that the only option is renegotiation. He said that a meeting was already held with the Ambassador of Turkiye to Bulgaria, which proved to be very constructive, and another meeting is scheduled in Azerbaijan with Turkiye's Minister of Energy and Natural Resources Alparslan Bayraktar. Stankov has authorized the leadership of both Bulgargaz and Bulgartransgaz to prepare the necessary documentation for negotiations with Botas.

The contract with Botas is long-term, has no cancellation clause and provides for indexation, Stankov said. Bulgaria will have to pay nearly BGN 20 million more in 2025 compared to the previous year, which is equivalent to about 50 000 leva per day. As of March 31, Bulgargaz will owe Turkiye nearly BGN 250 million, which cannot be paid at the moment.

Stankov stated that his Ministry is prepared for all possible scenarios related to the liberalization of the energy market and that Bulgarian households will not pay higher electricity bills.