Supplies from Azerbaijan give Bulgaria buffer against gas market shocks - ministry

BAKU. March 4 (Interfax) - The long-term contract with Azerbaijan remains the main source of stability in Bulgaria's gas market amid rising prices triggered by the crisis in the Middle East, Bulgarian Energy Minister Traycho Traykov said at a meeting with Bulgarian Prime Minister Andrey Gyurov.

The Bulgarian Energy Ministry's press office said Traykov informed Gyurov at an extraordinary meeting of the Council of Ministers in connection with the crisis in the Persian Gulf that the country had a "small but real" buffer against market shocks.

"While spot markets are highly sensitive to any news from the region, Bulgaria continues to receive gas under previously agreed terms, at prices set before the crisis. The main source of stability is the long-term gas contract with Azerbaijan," he said.

Current supplies are the result of active diversification efforts. "This is how we ensure supply stability and protect consumers from sudden price shocks. We continue to monitor developments in international markets and, together with state energy companies, are taking measures to maintain the sectors security and competitiveness and protect consumers," Traykov said.

He also said Bulgaria had secured liquefied natural gas at prices agreed before the escalation of the Middle East crisis. The deal was concluded at prices significantly below current market levels and creates conditions for predictability in the domestic market amid the sharp rise in international natural gas and oil prices.

A second LNG cargo of 2026 for state-owned company Bulgargaz is being unloaded at the Alexandroupolis terminal. The tanker carrying 100 million cubic meters of gas for Bulgaria was loaded at the Sabine Pass terminal, owned by Cheniere Energy of the United States, with Shell (SPB: RDS.A) acting as the supplier.

"The volumes currently being unloaded will cover Bulgargaz customers' needs for the current month," the ministry said.

Bulgargaz has carried out 22 direct LNG deliveries to terminals in Greece and Turkey since June 2022. Of these, 17 originated from the United States, while the remainder came from Norway and Algeria.

The ministry also said Traykov attended meetings of the Southern Gas Corridor Advisory Council and the Green Energy Advisory Council in Baku on March 3, where he said Azerbaijan was supplying almost 40% of Bulgaria's natural gas consumption under the 25-year contract.

"This agreement guarantees predictability, reliability of supply and price terms that are among the most competitive in Europe. During periods of market instability, gas from Azerbaijan serves a stabilizing function-deliveries are uninterrupted, and contractual parameters limit the impact of sharp price fluctuations," he said.

This means reducing the burden on businesses and households, increasing economic resilience, and maintaining the competitiveness of Bulgarian industry, he said.

Bulgaria has signed a long-term contract with Azerbaijan for gas supplies of 1 billion cubic meters per year.

The Azerbaijani Energy Ministry has said Azerbaijan supplied Bulgaria with 1.65 billion cubic meters of gas in 2025.