Azerbaijani Natural Gas Plays A Growing Role In Bulgaria's Energy Balance

(MENAFN- AzerNews) Akbar Novruz Read more

The importance of Azerbaijani natural gas in Bulgaria's energy mix continues to grow, reinforcing Azerbaijan's role as a key energy partner in Europe. According to a report published on the Energy and Water Regulatory Commission (EWRC) website, Bulgaria has adjusted its Natural gas price for February to 84.34 leva (45 USD) per MWh, marking a 3% increase from January.

The latest price calculation incorporates the full contractual volume of Azerbaijani natural gas delivered through the Bulgaria-Greece Interconnector (IGB), which plays a crucial role in diversifying Bulgaria's gas supply. The IGB is directly linked to the Trans Adriatic Pipeline (TAP), which transports Azerbaijani gas to Europe as part of the Southern Gas Corridor-an essential component of Europe's energy diversification strategy.

Azerbaijan remains committed to fulfilling its obligations regarding gas exports to Europe, steadily increasing supply volumes to meet growing demand. Azerbaijani Ambassador to Bulgaria Huseyn Huseynov, in an interview with Nova, revealed that the annual volume of Azerbaijani gas supplied to Bulgaria has doubled, reaching 2 billion cubic meters in 2024.

“We have increased the supply of Azerbaijani gas to Bulgaria, and the prices are also reasonable-they are relatively lower than the market price of SOCAR gas. We increased the supplies from 1 billion cubic meters to 1.2 billion, then to 1.5 billion, and by the end of last year, the volume reached 2 billion cubic meters. This means that we are meeting the main part of Bulgaria's needs for natural gas,” Huseynov stated.

This increase in Azerbaijani gas exports reflects Azerbaijan's ability to respond flexibly to European energy needs. Bulgaria, which has faced challenges in securing stable gas supplies amid regional energy fluctuations, has benefited significantly from Azerbaijan's consistent and affordable gas deliveries.

Azerbaijan's long-term commitment to Bulgaria's energy security

Huseynov recalled that in 2013, the State Oil Company of Azerbaijan (SOCAR) signed a 25-year contract with Bulgargaz for the supply of 1 billion cubic meters of gas annually. However, in response to Bulgaria's energy crisis and Sofia's urgent requests, Azerbaijan scaled up its gas deliveries to support Bulgaria's industries, which are highly dependent on natural gas.

Beyond bilateral agreements, Azerbaijan has strengthened its broader energy cooperation with Europe. In 2022, Azerbaijan signed a memorandum of understanding with the EU on a strategic energy partnership. Initially, Azerbaijan planned to supply 10 billion cubic meters of natural gas to the EU via TAP, but due to rising European demand, the volume was increased to 13 billion cubic meters.

Currently, Azerbaijan exports gas to 12 European countries, with Bulgaria playing a pivotal role in the regional gas supply chain. Bulgaria's well-developed internal gas transportation network enhances its position as a transit hub for Azerbaijani gas, allowing for efficient distribution to neighboring markets.

It is notable that in 2023, Bulgaria imported 1.25 billion cubic meters of Azerbaijani gas, underscoring the deepening energy ties between the two countries. The official launch of gas supplies via the IGB on October 1, 2022, marked a milestone in Bulgaria's energy security strategy and further solidified Azerbaijan's reputation as a reliable energy supplier to Europe.

As Europe continues its transition toward energy diversification and security, Azerbaijan's role in stabilizing gas markets and reducing dependency on other suppliers is becoming increasingly significant. With ongoing infrastructure projects and expanded gas partnerships, Azerbaijan is well-positioned to remain a cornerstone of Europe's energy strategy in the years ahead.

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