Bulgaria Sets up Balkan Hub
Balkan Gas Hub, the registered subsidiary, will establish a liquid gas exchange allowing bilateral trade and financial services, with the full backing of the government. The aim is to make the national gas market more liquid and so stimulate gas trade in the Balkans generally.
Most of Bulgaria's gas originates in Russia, delivered southwards through the pipelines that flow through Ukraine and Romania. Plans to build capacity north from Turkey into Bulgaria and Serbia, also carrying Russian gas, are advancing but Bulgartransgaz has not announced any specific investment plan so far.
Balkan Gas Hub's first task will be to provide market participants with access to a trading platform that meets the European Union's gas balancing network code requirements.
The new company will have a one-tier management form through a board of directors, chaired by the head of Bulgartransgaz Vladimir Malinov.
Bulgartransgaz said the hub concept is "in full compliance with the plans for development of the gas infrastructure in Europe. The establishment of a gas distribution hub on the territory of Bulgaria will improve energy security, enable diversification of the natural gas sources and routes for supply and ensure competitive prices for consumers. The project corresponds to the needs of the region identified by the High Level Group on Gas Connectivity in Central and South-Eastern Europe (CESEC), the development of the European Energy Union and is actively supported by the Bulgarian cabinet and the European Commission."