EC found no irregularities in LNG agreement with Turkish BOTAS

The Directorate-General for Competition of the European Commission (EC) has officially informed Bulgarian state-owned natural gas supplier Bulgargaz EAD and natural gas transmission system operator Bulgartransgaz that the investigation into agreements between the Bulgarian companies and the Turkish energy company BOTA? has been concluded without identifying any competition violations.

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The investigation, launched in October 2023, focused on agreements made in late 2022 between Bulgargaz, Bulgartransgaz and BOTAS. These agreements involved LNG supply to terminals in Turkey and capacity reservations at interconnection points between Bulgaria and Turkey.

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During the investigation, the EC's Directorate-General for Competition requested documents and information from Bulgargaz and Bulgartransgaz. Both companies fully cooperated with the authorities, providing all required documentation and detailed responses.

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In its formal notification to Bulgargaz and Bulgartransgaz, the EC confirmed that the case has been closed with no findings of infringement.

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The agreement with BOTAS was signed by the caretaker Government in January 2023. Thus, Bulgaria gained access to Turkish liquefied natural gas (LNG) terminals and gas transmission network under a long-term deal that will help the country replace supplies once provided by Russia. The agreement grants Bulgaria access to Turkey’s LNG terminals for a period of 13 years. The agreement between Bulgargaz and BOTAS, which also involves gas transmission system operator Bulgartransgaz as a third party, stipulates that Bulgaria will supply natural gas for Turkish networks, and then the gas will be bought back at the Bulgarian border. This means that Bulgaria is supposed to pay for the capacity regardless of the number of LNG shiploads received. While Bulgaria pays huge capacity charges over a period of 13 years, as envisaged in the agreement, BOTAS uses the Bulgarian gas transmission system and thus robs Bulgargaz of part of its market share. According to estimations, Bulgargaz lost 27 % of its market share in 2023.

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