“Natural gas will continue to be a key energy source in the region of the Balkans and South East Europe including after 2050. In the context of growing power demand and the need for secure production capacity, it appears to be one of the possible solutions to ensure energy stability. In early 2025, Bulgaria recorded a 5% growth in electricity demand – a trend that is expected to continue. At the same time, competitiveness of lignite coal is decreasing, leading to lower market demand for this type of generation. Although renewable energy sources will continue to develop, the region will also need base load and standby capacities. Gas-fired power plants have proven to be an effective solution in ensuring base load and standby capacities.” This was stated by the Executive Director of Bulgartransgaz EAD, Vladimir Malinov during his participation in the 55th International Gas Conference in Hungary.
"In order to provide the necessary conditions for implementation of gas power plant projects, we must first of all have built the infrastructure for transportation of additional natural gas quantities from secure sources such as the USA," Malinov emphasized. As an example, he mentioned the Vertical Gas Corridor, the construction of which is progressing on the Bulgarian territory and the increased transmission capacity from Greece to Bulgaria and from Bulgaria to Romania will be offered at the next annual auction.
According to him, as a result of the US strategy to increase the production, the diversification of sources is becoming a reality. The entry of significant quantities of the American liquefied natural gas through the Vertical Corridor infrastructure, including the Alexandroupolis terminal, whose operation has resumed, will allow the region to prepare over the next two years for the termination proposed by the European regulation of the long-term contracts for the purchase and sale of Russian natural gas. „In addition, the region continues to rely on natural gas supplies from Azerbaijan, which, together with the liquefied natural gas from secure sources such as the United States, contribute to creating a stable and diversified energy system“, Malinov stressed.
In connection with the implementation of the project for the expansion of Chiren underground gas storage facility, Malinov emphasized the need to follow the market needs when making investment decisions. „The difference in natural gas prices between the summer and winter months is no longer as pronounced, which raises questions about the profitability of large investments in new gas storage facilities“, he said. And he recalled that Chiren storage capacity has already been increased from 550 to 650 million cubic meters, and currently the storage is filled to over 80%.
