Bulgargaz: Botas wins contract to supply LNG to Turkey

Bulgarian Energy Minister Vladimir Malinov has announced that Botas, the Turkish state gas importer, has won Bulgargaz's tender to deliver LNG to Turkey in June, resulting in substantial savings.

Share:

Appel d'offres sur le GNL en Bulgarie remportée par Botas.

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The tender for the supply of liquefied natural gas (LNG) to Turkey, organized by Bulgargaz, has been awarded to Botas, the Turkish state gas importer. The contract covers a total quantity of 1 million MWh (3.4 TBtu) to be delivered on June 24 and 25. According to Vladimir Malinov, the contract will save Bulgargaz BGN 11.5 million (USD 6.4 million).13 companies expressed interest in the tender, and ten of them submitted bids. Botas offered a discount on the usual rate, which helped make its offer particularly attractive. This discount is in addition to the capacity reserved under the agreement signed between the two companies at the end of 2022.

Market background and analysis

The price offered by Botas for this tender was deemed unusually low by a Mediterranean-based LNG trader. This low price may be explained by Turkstream’s maintenance schedule at the beginning of June, which may have influenced market conditions. According to Platts’ assessments, the LNG price for June delivery in the Eastern Mediterranean was 9.44USD/MMBtu on May 15, at parity with TTF hub futures prices for June, or at a premium of 20cents/MMBtu to the North-West European market. For a cargo of 3.4TBtu, this would translate into a total cost of 32 million USD. However, with the discount obtained, the final cost would be around 25.7 million USD, i.e. a sales price of 7.56 USD/MMBtu. This represents a discount of 1.85 USD/MMBtu on the June TTF prices.

Economic implications and future strategies

This transaction strengthens energy relations between Bulgaria and Turkey, while enabling Bulgargaz to secure LNG supplies on advantageous financial terms. This supply strategy could serve as a model for future transactions, exploiting market opportunities and taking advantage of specific conditions such as periods of transport infrastructure maintenance. Bulgaria has previously launched a tender for a cargo to be delivered on May 18 to Alexandroupolis, with an option for delivery to Turkey in the event of delays in the Greek FSRU’s commercial operations.

Outlook for the LNG market

The LNG market in Southeast Europe is evolving rapidly, with growing demand and developing infrastructure. Future projects and collaborations with partners such as Botas will strengthen the region’s energy security. In addition, recent developments in LNG infrastructure, such as FSRU terminals and pipelines, will offer new opportunities for natural gas transactions and exchanges, supporting the European Union’s energy and climate objectives. Botas’ success in Bulgargaz’s tender to supply LNG to Turkey illustrates the importance of strategic relationships and adaptability in the energy sector. This transaction will generate substantial savings for Bulgaria and strengthen its position in the South-East European LNG market.

Backed by an ambitious public investment plan, Angola is betting on gas to offset declining oil output, but the Angola LNG plant in Soyo continues to face operational constraints.
Finnish President Alexander Stubb denounced fossil fuel imports from Russia by Hungary and Slovakia as the EU prepares its 19th sanctions package against Moscow.
Japanese giant JERA has signed a letter of intent to purchase one million tonnes of LNG per year from Alaska, as part of a strategic energy agreement with the United States.
US-based Chevron has submitted a bid with HelleniQ Energy to explore four offshore blocks south of Crete, marking a new strategic step in gas exploration in the Eastern Mediterranean.
GTT has been selected by Samsung Heavy Industries to design cryogenic tanks for a floating natural gas liquefaction unit, scheduled for deployment at an offshore site in Africa.
A consortium led by BlackRock is in talks to raise up to $10.3 billion to finance a gas infrastructure deal with Aramco, including a dual-tranche loan structure and potential sukuk issuance.
TotalEnergies commits to Train 4 of the Rio Grande LNG project in Texas, consolidating its position in liquefied natural gas with a 10% direct stake and a 1.5 Mtpa offtake agreement.
US producer EQT has secured a twenty-year liquefied natural gas supply contract with Commonwealth LNG, tied to a Gulf Coast terminal under development.
The Chief Executive Officer of TotalEnergies said that NextDecade would formalise on Tuesday a final investment decision for a new liquefaction unit under the Rio Grande LNG project in the United States.
Monkey Island LNG has awarded McDermott the design of a gas terminal with a potential capacity of 26 MTPA, using a modular format to increase on-site output density and reduce execution risks.
The Voskhod and Zarya vessels, targeted by Western sanctions, departed China’s Beihai terminal after potentially offloading liquefied natural gas from the Arctic LNG 2 project.
ADNOC Gas will join the FTSE Emerging Index on September 22, potentially unlocking up to $250mn in liquidity, according to market projections.
Norwegian company BlueNord has revised downward its production forecasts for the Tyra gas field for the third quarter, following unplanned outages and more impactful maintenance than anticipated.
Monkey Island LNG adopts ConocoPhillips' Optimized Cascade® process for its 26 MTPA terminal in Louisiana, establishing a technology partnership focused on operational efficiency and competitive gas export pricing.
NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.
Sawgrass LNG & Power has renewed its liquefied natural gas supply agreement with state-owned BNECL, consolidating a commercial cooperation that began in 2016.
Gazprom and China National Petroleum Corporation have signed a binding memorandum to build the Power of Siberia 2 pipeline, set to deliver 50 bcm of Russian gas per year to China via Mongolia.
Permex Petroleum signed a $3 million purchase option on oil and gas assets in Texas to support a strategy combining energy production and Bitcoin mining.
Enbridge announces the implementation of two major natural gas transmission projects aimed at strengthening regional supply and supporting the LNG market.
Commonwealth LNG’s Louisiana liquefied natural gas project clears a decisive regulatory step with final approval from the U.S. Department of Energy for exports to non-free trade agreement countries.

Log in to read this article

You'll also have access to a selection of our best content.