Experts: Natural gas has serious potential and will be part of the green transition

The balance in the energy sector should be guided by the policies of the European Union and the national characteristics of the energy market, believes the CEO of Bulgartransgaz Vladimir Malinov. The discussion was part of the fifth edition of the Green Transition Forum 5.0 - the largest event for transformation and development in Central and Eastern Europe, which is taking place from June 16 to 20 at the Sofia Event Center. The organizers are Green Transition Forum, Dir.bg and 3E-news.net. According to Malinov, it is normal for there to be challenges in the green transition.

"The general goals of the EU and in particular of the European Commission are for an energy sector that meets the needs of the member states, which is much greener, more based on renewable energy, which reduces the impact on climate change. This is something that we must follow and do. But here come the national specifics, starting from the mix that the Bulgarian energy sector has, taking into account the natural resources we have, but we must also think about the economic feasibility of these actions, because the goods are created in the country," he said.

According to him, energy is the backbone of the economic development of every country.

Malinov believes that the transition to green energy should not be at the expense of the competitiveness of the Bulgarian economy. In his words, the social element should also be taken into account in terms of price affordability, because Bulgarian consumers are the poorest.

“There are also foreign policy factors that affect energy, which shows us our vulnerability and we need to work more at the regional level for cooperation,” Malinov noted.

He believes that natural gas has untapped potential in terms of its role in the energy mix.

According to Teodora Georgieva, CEO of ICGB, the interconnector between Greece and Bulgaria is extremely important because it is a cornerstone and a key element of two corridors - the Vertical Gas Corridor and the Southern Gas Corridor. She also emphasized the importance of the Southern Gas Corridor for the connection to the Adriatic grid.

She highlighted the recent implementation of a bundled product for deliveries to Ukraine on Route 1 of the Vertical Gas Corridor (VGC) - a solution developed by neighboring transmission system operators. Although ICGB is not part of this route, the company sees the initiative as an important precedent for market-based flexibility and a model worth exploring further.

Georgieva noted that the ICGB is currently holding discussions within its governing bodies to assess the feasibility of similar packaged or integrated solutions, including Routes 2 and 3, that would allow flows through the IGB from Alexandroupolis LNG and TAP. If adopted, such an approach could provide commercial benefits for shippers, including a potential 25% discount, while increasing system integration and competitiveness.

The ICGB has consistently advocated for the inclusion of Ukraine and Moldova in the Vertical Corridor and sees these next steps as a natural development in strengthening regional connectivity and solidarity.

Georgieva stressed the urgent need for transitional regulation at EU level that recognizes the strategic role of natural gas during the energy transition. A harmonized regulatory regime by 2028 is an essential condition for a competitive and sustainable European energy market, especially given today’s geopolitical realities.

"Now the consumption in Bulgaria is lower, but it has great potential. Bulgaria has a long-term contract regarding the Southern Gas Corridor with Azerbaijan, and this will provide a third of the consumption," she said.

Georgieva emphasized that the gas infrastructure is not subsidized by the EU. "We face the difficult task of taking care of all the goals we are working on, including energy security, without the support of the EU. The EU's support for innovation is important for us," she said.

Murat Heydarov, CEO of the State Oil Company of the Republic of Azerbaijan (SOCAR) for the Balkans, pointed out that Azerbaijan is currently one of the main gas suppliers to the EU.

"The idea of ​​the Southern Gas Corridor was born 20 years ago. There were challenges, but we managed to come to a satisfactory solution and things will continue to improve," he said.

According to him, in order to ensure a smooth transition to fuels with a zero carbon footprint, natural gas is an important element.

Svetoslav Benchev, Chairman of the Management Board of the Bulgarian Oil and Gas Association (BPGA), pointed out that local production is the other aspect of a country's national security, especially regarding natural gas.

"Unfortunately, in Bulgaria we only talk about exploration and production of oil and gas in the Black Sea and nothing has happened yet, but I am optimistic because we have already signed an agreement with Shell and I hope that in a few years we will have the first positive results," he said.

According to him, about 80 percent of Bulgarians support exploration and production of oil and gas in the Black Sea.

"In Central and Eastern Europe, we are countries more or less from the same family and the best way to achieve something in Brussels is to work together, not separately," Benchev also said.

Petar Fildishev, Director of Natural Gas Trading at MET Energy Trading Bulgaria, pointed out that liquefied gas is the product that completely changed the gas market in Europe and its share in the energy mix has increased many times.