Bulgaria eyes LNG deal with Qatar to diversify Balkan supply sources

Stoynev (right) and Dimitrov in an interview with Gulf Times in Doha yesterday. Picture: TK NasserBy Pratap John/Chief Business ReporterBulgaria expects to sign an agreement with Qatar for liquefied natural gas supply even as it seeks Qatari investment in a major LNG terminal project in Greece that will diversify supply source to many Balkan countries in Europe.“Today we have discussed these issues with Qatar and are happy about the outcome of the talks with the country’s leadership,” said Bulgarian Minister of Economy and Energy Dragomir Stoynev in an interview with Gulf Times in Doha yesterday.Stoynev said the proposed LNG regasification terminal would provide the “much needed security of supply” of natural gas for his country.“Currently, our only supplier is Russia, which provides Bulgaria piped gas. During the 2009 Russian – Ukraine conflict our supply was disrupted. It took strenuous efforts to restore supplies then,” Stoynev said.If Qatar invests in the LNG terminal project, the Bulgarian minister said, “Your country will have a wider market as many Balkan countries such as Serbia, Macedonia, Kosovo and Albania will make use of the Qatari gas. Interconnectors are now being built to give Baltic States access to the project.“Our interconnector with Romania has already been built. This year, we will interconnect with Greece. An interconnection with Serbia has also been taken up. And during the Turkish energy minister’s recent visit to Sofia, we started to negotiate on an interconnector with Turkey.”Stoynev said the European Union is supporting the project. “It is in the EU’s priority and hence it is a European project. Qatar’s Prime Minister HE Sheikh Abdullah bin Nasser bin Khalifa al-Thani has expressed interest in the project.”Explaining why Greece had been chosen as the LNG terminal location, Stoynev said, “It is impossible to set up such a facility on the Black Sea as it will impact the movement of ships through Bosporus.”The proposed terminal is planned on the northern coast of Greece, he said.“If Qatar invests in the facility, it can enter the gas market in the southeast European region,” the Bulgarian minister said.He said if the two countries reached an agreement on LNG supply, Qatar would become the first LNG supplier to Bulgaria. Stoynev said his country currently imported oil, gas and black oil. The domestic production of natural gas meets only around 15% of the country’s annual consumption. Bulgaria has substantial reserves of lignite coal, nuclear energy and has begun developing renewable energy sources. “But at the moment, we are not able to meet our energy needs without importing energy,” Stoynev said.The Bulgarian side also held talks with Qatar Holding (QH) yesterday, seeking investments in a planned highway passing through many Balkan countries. The highway will come in handy for trucks movement from Ukraine to Turkey.Bulgarian Deputy Minister of Economy and Energy Krassin Dimitrov said his side also sought Qatari investment in an investment fund targeting small and medium enterprises (SMEs) and in a power project based on lignite coal. He said a presentation was made before Qatari Diar for investment in a prime real estate mixed use project in Sofia.“I understand they are interested in the project,” Dimitrov added. Page 16