Start of the establishment of a liquid natural gas market in Bulgaria
In fulfilment of the decision approved by the Council of Ministers and the National Assembly amending the 2020 Energy Strategy of the Republic of Bulgaria and having regard to the realization of the concept for establishment of a gas distribution hub on the territory of Bulgaria, Bulgartransgaz EAD registered a subsidiary, Balkan Gas Hub ЕAD. Currently, 100% of the shares are owned by Bulgartransgaz EAD, where no more than 49% of the shares could at a later stage be provided to other physical and legal entities. This would contribute to the realization of the concept for a gas distribution hub Balkan and the increase in liquidity of the natural gas market in Bulgaria and the region of South Eastern Europe.
The company will operate trading platforms servicing the needs of the natural gas markets within the Balkan gas hub. In synergy with the physical infrastructure of the gas distribution hub, the prerequisites required for establishment of the first, Bulgaria based, liquid physical and trading gas hub in the South Eastern Europe region will be provided.
In line with its objectives, Balkan Gas Hub EAD will establish a liquid gas exchange on the territory of Bulgaria with a bilateral trade segment as well, offering state-of-the-art products and financial services.
As a first stage of implementation of the gas exchange, Balkan Gas Hub EAD will provide the participants in the natural gas market in Bulgaria and the region with the opportunity to use a trading platform with all the necessary functionalities, according to the requirements of Art. 10 of Regulation (EU) No 312/2014 establishing a Network Code on Gas Balancing of Transmission Networks.
The newly established company will have a one-tier management form through a Board of Directors with a Chairman of the Board - the Executive Director of Bulgartransgaz EAD Mr. Vladimir Malinov, and members Mr. Zahari Dechev and Mr. Kiril Ravnachki as an Executive member of the Board.
Source: Bulgartransgaz EAD