EBRD Takes Active Role in Bulgarian, Ukrainian Gas Investments

The European Bank for Reconstruction and Development (EBRD) is taking a more active role in Europe’s gas industry, taking part in a €20 million loan to energy distributor Bulmarket DM to support the development of liquefied natural gas (LNG) to Bulgaria.

‘The EBRD and the IFC, a member of the World Bank Group, are providing €20 million in loans to support the expansion of Bulgarian fuel supplier Bulmarket DM, helping  introduce cleaner fuels and diversify the energy sources available to Bulgaria’s smaller businesses’ reads a note released on Friday.

EBRD explained that half of the amount will be targeted to expand Bulmarket DM’s network of LPG terminals, while the rest will allow the company to become the first importer and distributor of LNG in Bulgaria.

“Unlike natural gas delivered via pipelines, the introduction of LNG on the market offers flexibility, as it can be transported from and to anywhere,” said EBRD’s Director for Bulgaria, Daniel Berg.

Several companies are investing in LNG in this period, with mega deal being signed in the last hours. On Friday, for example, Technip Samsung Consortium was awarded two contracts by Shell for the Browse floating liquefied natural gas (FLNG) project in Australia, operated by Woodside. 

Meanwhile, EBRD told Reuters that it could invest up to $1 billion in Ukraine this year, including in the gas sector, conditionally to the implementation of reforms. 

"We're going to aim for (investment of) something getting towards $1 billion ... but it's completely dependent on reform implementation, so it could be less," EBRD President Suma Chakrabarti told in the interview on Thursday, explaining that energy, banking and judicial sectors are the most delicate aspects that require great efforts from Kiev.