• Natural Gas News

    Gazprom Ends Bulgarian Dispute

Summary

Russia's monopoly over Bulgarian gas supply is reaching an end.

by: Joe Murphy

Posted in:

Natural Gas & LNG News, Europe, Corporate, Litigation, Import/Export, News By Country, Bulgaria

Gazprom Ends Bulgarian Dispute

Gazprom is set to receive over €100mn ($121mn) after settling a dispute with Bulgarian gas firm Overgas that will also see it divest its 50% stake in the company, the Russian supplier said in a terse statement on January 29.

Overgas had challenged Gazprom's cut in supplies to Overgas in 2016 and decision to sell gas only to state-owned Bulgargaz. Earlier this month Overgas' distribution arm secured €117mn in financing from International Bank for Economic Co-operation, UniCredit Bulbank, Raiffeisenbank Bulgaria, DSK Bank and Allianz Bank Bulgaria.

Bulgaria has traditionally received all its gas from Russia, with shipments reaching 2.4bn m3 in 2019, according to Gazprom data. But the country began receiving gas from Azerbaijan at the start of this year following the completion of the Trans-Adriatic Pipeline. It will be able to expand Azeri gas and obtain LNG supplies once the Interconnector Greece-Bulgaria is completed later this year.