Bulgargaz, BOTAŞ Freeze Long-Term Gas Deal as Renegotiations Begin

Bulgargaz and BOTAŞ have agreed to freeze the terms of their long-term gas agreement for 15 months while the two sides renegotiate the contract, a move that could reshape regional gas supply arrangements.

(Reuters) — Bulgaria's state gas supplier Bulgargaz and Turkey's state gas firm BOTAŞ signed a protocol on July 6 that will freeze the current terms of a long-term contract for 15 months while the two countries renegotiate the agreement in line with market conditions, the Bulgarian government's press office said. 

• In 2023, Bulgargaz and Botas signed a 13-year deal giving Bulgaria access to neighboring Turkey's gas network and liquefied natural gas (LNG) terminals to help diversify supply routes. Until then, Bulgaria had been nearly entirely dependent on Russian gas.
• The protocol was signed on Monday after talks between Bulgaria's Prime Minister Rumen Radev and Turkish President Recep Tayyip Erdoğan ahead of a NATO summit held in Ankara, the press office said in a statement.
• During the 15-month period Bulgargaz will pay only for the gas import capacity it uses, under improved terms, rather than under the current contract conditions, the statement said. The two sides will continue working on renegotiating the contract between the companies in line with current market conditions, it added.
• The leaders also agreed that Bulgaria and Turkey share a common interest in making full use of the maximum natural gas transmission capacity.
• They also noted a positive trend in growing bilateral trade, with turnover reaching €9 billion ($10.30 billion) and discussed new potential projects of mutual interest. Bulgaria also expressed interest in attracting more high-value-added Turkish investment, the statement said.

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