Bulgaria Expands LNG Purchases from the US and Diversifies Its Energy Security

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The Bulgarian government reached an agreement with United States officials in June to receive liquefied natural gas (LNG) from the United States, signaling a strategic shift in Sofia’s energy imports.

Following Gazprom’s decision to halt deliveries on April 27 after Bulgaria and Poland declined to switch to a ruble-based payment scheme, Bulgaria explored alternative supplies to ensure energy security.

Bulgarian Prime Minister Kirill Petkov and U.S. Vice President Kamala Harris met at the White House. After discussions, Sofia announced that gas would be procured from Washington at prices anticipated to be lower than Gazprom’s. Details on the exact purchase price were not disclosed publicly.

Vice-President Harris congratulated Bulgaria on taking steps to defend its energy sovereignty. Prime Minister Petkov emphasized that the Bulgaria–Washington partnership supports Sofia’s independence from Russian gas and reinforces its solidarity with the European Union.

President Rumen Radev stressed that the government seeks not only favorable pricing but also sustainable supply, ensuring that Bulgarian businesses and consumers can reliably estimate energy costs.

During the same visit, Prime Minister Petkov also met with U.S. Secretary of State Antony Blinken to discuss expanding the energy-diversification framework and modernizing Bulgaria’s military capabilities, highlighting a broader bilateral agenda beyond gas supplies.

Suspension of Russian deliveries

In early April, Bulgaria publicly reaffirmed its intention to pay for Russian gas in euros. This stance followed a decree by Vladimir Putin on April 1 requiring “unfriendly” nations to settle gas payments in rubles.

Officials stated that Bulgarian contracts did not authorize ruble payments and that the country would adhere to the European position on gas payments, avoiding any pressure to switch currencies.

On April 27, Gazprom halted gas deliveries to Bulgaria for failure to meet ruble-payment requirements. The government described the move as heavy-handed pressure while maintaining that energy security remained intact for the country.

The Bulgarian cabinet asserted that all contractual obligations were fulfilled on time and in accordance with the contract terms. It also assessed that the ruble-based payment proposal from Russia did not align with existing agreements and posed risks to Bulgaria’s energy stability.

European Commission President Ursula von der Leyen noted that Bulgaria and Poland continue to receive the gas they need, sourced from neighboring EU states, underscoring the goal of diversified and secure energy supplies within the Union. The EC framed Gazprom’s actions as a reminder for the EU to work with reliable partners and to strengthen energy independence.

The Kremlin signaled that other states might also face ruble-based payment requirements if they wish to continue buying Russian gas, suggesting the pressure would extend beyond Bulgaria and Poland.

Alternative providers

In 2021, Bulgaria imported approximately 3.3 billion cubic meters of Russian gas, representing over 90% of its total gas consumption. The country relied heavily on a decade-long Gazprom contract that was set to expire at the end of 2022.

Officials indicated that Sofia would not renew the contract upon its expiration and would pursue other sources. Deputy Prime Minister and Finance Minister Asen Vassilev noted that Bulgaria possesses alternative suppliers, including potential deliveries from Qatar and Algeria.

Additionally, there is an opportunity to tap the Trans-Balkan gas pipeline, which has a capacity around 20 billion cubic meters, while Bulgarian demand stands near 3 billion cubic meters. In April, Bulgarian authorities held dialogues with Greece and Turkey to leverage existing infrastructure for LNG purchases and to boost imports from Azerbaijan, with which Bulgaria also has agreements.

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