A day after Bulgaria and Turkey renegotiated the agreement with BOTAS, Prime Minister Rumen Radev provided details of the new terms of the contract.
For the next 15 months, Bulgaria will not pay for reserved capacity and will only make payments when it actually uses Turkish terminals for liquefied natural gas. Radev assured that the obligations accumulated so far towards the Turkish side would not place a burden on the state budget.
PM Rumen Radev: Bulgaria will not pay for capacity over the next 15 months and will only pay if it transports gas through BOTAŞ
The protocol signed between Bulgargaz and BOTAS marks the beginning of a 15-month period during which the two companies are expected to renegotiate the terms of the existing agreement. Prime Minister Radev stressed that new financial parameters and better terms for using Turkey’s gas infrastructure would be agreed during this period.
Political Reactions After Government Announces 15-Month Freeze of BOTAS Deal
Rumen Radev, Prime Minister:
“First and foremost, over the next 15 months Bulgaria will not pay for capacity; it will only pay if it supplies gas through BOTAS. During these 15 months, the BOTAS contract will be optimised on the basis of this protocol, which contains several important fundamental parameters that will guide and pave the way for these negotiations.”
The Prime Minister’s statement came after comments in Bulgaria suggesting that the renegotiation was linked to the assumption of other commitments towards Turkey. Radev rejected those claims.
Rumen Radev, Prime Minister:
“The protocol and these relations in the gas sector have nothing to do with any other project. This is a genuinely independent protocol specifically in the gas sector. Most importantly, this protocol achieves a substantial reduction in the cost of regasification and transmission. This is driven by the understanding of both sides that we can be much more efficient and position ourselves in a way that allows us to make maximum use of our significant potential to supply even larger quantities of gas to Central and Eastern Europe.”
The Prime Minister also commented on the obligations accumulated so far under the agreement with the Turkish company.
Rumen Radev, Prime Minister:
“We owe 360 million dollars. I repeat, to all those who said today that we paid half a million for nothing — we have not paid that. With this protocol, we are now creating an opportunity to find an effective solution, and we know how and have agreed that clearing this debt will not burden Bulgarian finances. During these 15 months we will have serious work to do, unlike previous governments, so that Bulgaria can position itself as a gas trader.”
According to the prime minister, the new conditions will make the use of Turkish terminals more competitive.
Rumen Radev, Prime Minister:
“This will be determined by the companies themselves, but I can tell you that we will not pay anything for capacity, and no obligations will be charged to us. Only if we request that a tanker docks at the Turkish terminals, naturally we will pay for the transmission. But I want to emphasise the most important point — significantly, significantly lower prices, which give us a major competitive advantage for gas trading throughout the region. This is the most important part of this protocol. We are moving into a new dimension of Bulgaria’s positioning on the energy map. We are becoming much stronger, and we will ensure that our government takes advantage of this.”
The agreement between Bulgargaz and BOTAS was signed in January 2023 during the second caretaker government lof Galab Donev. It has a term of 13 years and aims to provide Bulgaria with access to liquefied natural gas terminals and Turkey’s gas transmission network.
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