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    Gazprom to pay $413mn in advance for Bulgarian pipe capacity

Summary

Bulgartransgaz will use most of the funds to make an advanced payment to the Saudi company that built the pipeline.

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Europe, Corporate, Contracts and tenders, Infrastructure, Pipelines, News By Country, Bulgaria

Gazprom to pay $413mn in advance for Bulgarian pipe capacity

Russian gas supplier Gazprom has agreed to pay €349mn ($413mn)  in advance to book capacity at a 474-km section of pipeline in Bulgaria that will handle gas from the TurkStream pipeline, Bulgarian grid operator Bulgartransgaz reported on July 27.

Gazprom Export has committed to paying upfront for transmission capacity between July 1, 2021, and June 30, 2023. Bulgartransgaz said it would use most of the proceeds, some 461mn Bulgarian lev ($279mn), to make an advanced payment to Saudi construction firm Arkad, which was hired to lay the pipeline in 2019 for €1.1bn. It will also use €65mn to cover loans to commercial banks.

The pipeline forms part of the Balkan Stream, an extension of TurkStream that will carry Russian gas through Bulgaria and Serbia and into Hungary. Bulgaria and Serbia completed their sections last year.