SOFIA, July 7 (BV) – Bulgaria and Turkey have agreed to suspend key provisions of their controversial natural gas agreement for 15 months, allowing the two sides to renegotiate the contract signed between Bulgaria’s state-owned Bulgargaz and Turkey’s BOTAS.
Bulgarian Prime Minister Rumen Radyev said Bulgaria will not pay for reserved capacity during the negotiation period and will only pay when it actually imports liquefied natural gas through Turkish terminals.
The protocol, signed after talks between Radyev and Turkish President Recep Tayyip Erdogan, opens a 15-month window for the two state energy companies to revise the financial and commercial terms of the agreement.
Radyev rejected speculation that the renegotiation was linked to broader political or infrastructure concessions to Turkey, insisting the protocol concerns only cooperation in the gas sector.
He said the revised framework would significantly reduce regasification and transmission costs, allowing Bulgaria to strengthen its position as a regional gas trader supplying Central and Eastern Europe.
The Bulgarian leader acknowledged that obligations accumulated under the existing agreement amount to around $360 million, but said the debt would be addressed during the renegotiation process without placing additional pressure on the state budget.
“We will not pay anything for reserved capacity during these 15 months. Payments will only be made when we actually use the Turkish LNG terminals,” Radyev said.
The original BOTAS-Bulgargaz agreement was signed in January 2023 under Bulgaria’s caretaker government. The 13-year contract grants Bulgaria access to Turkish LNG terminals and gas transmission infrastructure but has faced persistent criticism over its financial terms, particularly the obligation to pay fixed capacity charges regardless of actual usage.
Officials say the temporary suspension is intended to create a more commercially viable framework while preserving Bulgaria’s access to diversified gas supplies.