Minister Malinov: Тhe Vertical Gas Corridor is a strategic initiative that will ensure energy security
The first two main contracts for the projects implementation, for the loopings Kulata-Kresna and Rupcha-Vetrino have been signed at the Council of Ministers
“The Vertical Gas Corridor is not only a strategic initiative of key importance to the countries of the region, but also an instrument to ensure their energy security.” That is what Energy Minister Vladimir Malinov said at a ceremony at the Council of Ministers, where two main contracts were signed to implement the project - for the loopings Kulata-Kresna and Rupcha-Vetrino. That launches real capacity-building activities between Greece and Bulgaria and Bulgaria and Romania, after which the Bulgarian gas transmission infrastructure will be able to supply additional quantities of LNG from reliable sources, including the U.S.A., Azerbaijan, Egypt and others. The documents were signed in the presence of Prime Minister Dimitar Glavchev, the Chair of the Energy and Water Regulatory Commission Ivan Ivanov, the Deputy Chief of Mission of the U.S. Embassy in Bulgaria Andrea Brouillette-Rodriguez, the Ambassador of Hungary to Bulgaria H.E. Miklós Boros, Ukraine's Ambassador to Bulgaria H.E. Olesya Ilashchuk, Moldova's Ambassador H.E. Anatol Cebuc and Greece's Ambassador H.E. Alexios Liberopoulos, as well as the Deputy Head of Mission of the Embassy of the Slovak Republic Daniel Ország.
In Minister Malinov's words, the increase in transmission capacities between Greece and Bulgaria, as well as between Bulgaria and Romania, starting as of today, allows for additional supplies from alternative sources, which is key to secure supply to the countries of the region. “The cooperation between Bulgarian and U.S. companies in delivering these projects of the initiative provides an excellent example for the implementation of future energy projects of the required quality, within the timeframe and the budget earmarked,” Malinov stressed.
“The initiative of the gas transmission operators of Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova will ensure energy security through diversified supplies in the long term,” Prime Minister Dimitar Glavchev said during the ceremony. He underlined that following the planned cessation of Russian natural gas transit through Ukraine at the beginning of 2025, the Vertical Gas Corridor, initiated by Bulgaria, would be deployed as infrastructure of major importance for the entire region.
Prime Minister Glavchev also noted the state's active contribution to the successful implementation of the strategic project: the Development Council to the Council of Ministers has already approved state guarantees in the next year's draft budget and this will enable attractive bank financing. An interdepartmental working group has also been set up, whose main objective is to synchronize the actions of the state institutions involved in the project in order to complete it within the foreseen timeframe.
The Vertical Gas Corridor is a strategic initiative of the gas transmission operators of Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova aimed at improving security and diversifying sources and routes for transporting additional quantities of natural gas from south to north. At the end of May 2024, the Bulgarian gas transmission operator Bulgartransgaz EAD successfully finalized the most important contract for the realisation of the project, for spatial planning, investment design, supply of the necessary materials and equipment, construction and commissioning of new gas expansion sites. The looping agreements signed today from Kulata to Kresna and from Rupcha to Vetrino are contracted by DZZD Hill International – GBS 1 and DZZD Hill International – GBS 3, respectively (alliances involving Bulgarian and U.S. companies). The total value of the two contracts amounts at approximately BGN 485 million.
