The State Guarantees BGN 248.9 Million for the "Vertical Gas Corridor"

The state guarantees key funding for the construction of the Vertical Gas Corridor – a strategic project aimed at strengthening energy independence and diversifying gas supplies in the region. The Council of Ministers approved the provision of state guarantees for loans amounting to BGN 248.9 million, granted to Bulgartransgaz EAD. This decision, made at today's cabinet meeting, provides the backbone for the realization of the large-scale infrastructure.

According to information provided by the government's press service, the guarantee agreements were concluded with two major financial institutions – Investbank AD and United Bulgarian Bank AD. These funds are intended to cover part of the investment costs for the project "Expansion of the gas transmission infrastructure of Bulgartransgaz EAD_q, which is part of the Vertical Gas Corridor initiative.

The loans will be utilized by December 15, 2025, and their repayment period is fixed at five years, starting from January 1, 2027 – a date that marks the end of the grace period. This financial planning is in line with the decision of the National Assembly from March 14, 2024, which provides for the project to be financed through a combination of increasing the capital of Bulgartransgaz and loans with state guarantees.

Why is the Vertical Gas Corridor important?

The Vertical Gas Corridor represents a vital link that will allow natural gas transmission in two main directions. The first stage includes expanding the capacity of the interconnector at Kulata/Sidirokastro, ensuring a flow from Greece to Bulgaria. The second element is related to increasing the capacity of the Negru Voda/Kardam connection, which will facilitate transmission from Bulgaria to Romania. These key sections were not chosen by chance, but are included in the strategic ten-year plans of the European network operators ENTSOG and Bulgartransgaz EAD.

The project is based on the idea of strengthening energy security throughout Southeast Europe. The government's information service emphasizes that the realization of the corridor will lead to increased reliability of supplies, tangible diversification of sources, and will stimulate the development of a truly competitive and integrated regional gas market.

Political commitments related to the project were also confirmed at the parliamentary level. The Minister of Energy, Zhecho Stankov, stated during a blitz control in the relevant commission in early September that Bulgaria is the first country to take concrete steps for the construction of the corridor. "A large part of the gas pipeline has been laid in the first section,_q the minister specified, giving a concrete example of the progress.

The first steps of the construction began in the section from the Kulata border checkpoint to the connection point to the already existing gas pipeline near the town of Kresna. This progress marks an important stage in the implementation of the ambitious plan, which connects the gas transmission networks of Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine, and Moldova, creating a new energy route that bypasses traditional paths dominated by Russian supplies.