Vladimir Malinov: The Vertical Corridor will allow change in the energy market to happen

"As it became clear yesterday, an agreement has already been reached at European level for a complete ban on the import of Russian natural gas as of September 2027. This step, together with the policy of the new US administration, which from the first day of its work has been promoting increase in the export of liquefied natural gas, totally changes the dynamics of the energy market," said Vladimir Malinov, Executive Director of Bulgartransgaz EAD. He participates in the 25th World LNG Summit, which is taking place in Istanbul, Turkey.

"We expected such a development in the market and that is why we are consistently working on implementation of the Vertical Gas Corridor as the main highway for transport of liquefied natural gas to the region. Nine gas transmission operators are already involved in the project, which is of strategic importance not only for Bulgaria and Greece, but also for the entire region," Malinov emphasized. According to him, forecasts show a steady increase in natural gas consumption in the region - both, due to the transition to gas-fired power plants and the significant potential for construction of new power facilities. "To meet this demand, we need to have contemporary infrastructure with sufficient capacity. The LNG terminals in Greece and Turkey provide natural access to new sources, and the logical transmission route to the region passes through Bulgaria," he added.

Malinov called for consideration at regional level regarding the conclusion of long-term LNG supply contracts. "Markets in South East Europe are relatively small. If we pool our demand nominations and offer LNG traders common long-term contracts, we will achieve better prices and higher competitiveness for households and business throughout the region." Malinov noted that large-scale investments are already being made in gas-fired power generation facilities in neighbouring countries and many existing coal-fired power plants will switch to natural gas. "Our analyses show that the demand for natural gas in the region will grow by between 20 and 30% over the next five years. This makes infrastructure investments crucial and urgent," he added.

During a leadership round table organized within the framework of the event, Malinov also participated in a discussion of the challenges and prospects for development of the liquefied natural gas sector. He also met with Thomas Hardy, Deputy Director and Chief Operating Officer of the U.S. Trade and Development Agency, as well as with Carl Kress, Regional Director for the Middle East, North Africa, Europe and Asia of the Agency. They discussed the implementation of a joint study for a project aimed to improve the region's access to American liquefied natural gas. Both agreed that such an initiative would contribute significantly to market development in the region and ensuring energy security.