Bulgargaz is currently facing serious financial difficulties, with projected losses for 2024 amounting to 280 million leva, according to Energy Minister Zhecho Stankov, who spoke to Bulgarian National Television. A significant portion of this financial strain is due to growing debts to Turkey’s Botaş, which have already reached 220 million leva and are expected to rise to 250 million once the latest invoice is received by the end of March.

The minister highlighted the urgency of the matter in an earlier interview on BNT, where he said that Bulgargaz has not made any payments under its contract with Botaş for the past nine months because it cannot afford to. As a result, debts have accumulated to a level that now threatens the stability of the state-owned company. Stankov announced that he intends to meet with his Turkish counterpart in early April to explore possible solutions.

At the core of the issue is the structure of the agreement signed between Bulgargaz and Botaş, which includes a “take or pay” clause. Under this condition, Bulgaria must pay the agreed fees even if it does not receive any natural gas through Turkish infrastructure. Minister Stankov criticized the contract, stating he would not have approved such terms had he been in office at the time. He pointed out that the agreement was concluded by former caretaker minister Rosen Hristov.

Stankov also emphasized the broader implications of the deal, stressing that it requires payments regardless of whether Bulgaria uses the Turkish terminals and gas infrastructure. This, he said, adds further strain to Bulgargaz’s already troubled financial position.