Thursday, December 20, 2018
CEGH and Bulgartransgaz sign MoU for the development of the Balkan Gas Hub
CEGH and Bulgartransgaz signed Memorandum of Understanding (MoU) on 20 December 2018 in Sofia, in the Ministry of Energy of the Republic of Bulgaria
Supporting the development of the “Balkan Gas Hub” in Bulgaria
Exchange of information, know-how and best practice to support the establishment of a liquid market place for natural gas trading
The Austrian Central European Gas Hub AG (CEGH) and the Bulgarian TSO Bulgartransgaz EAD (BTG) have signed a Memorandum of Understanding (MoU) to cooperate in developing the “Balkan Gas Hub” in Bulgaria.
CEGH and BTG share the view that the Bulgarian gas market plays an important role in developing liquid gas trading in Southeast Europe, which is one of the key issues for reaching security of supply and competitiveness in the region of Southeast Europe.
Bulgartransgaz will invest into the expansion of the Bulgarian natural gas transmission pipeline network to make Bulgaria a major natural gas distribution node for the European natural gas markets.
CEGH will contribute to the cooperation with the provision of information and know-how on successful operation of gas hubs and liquid gas trading places linked to the major European gas distribution node in Baumgarten, Austria. CEGH will support Bulgartransgaz to evaluate how to develop the “Balkan Gas Hub” into an important trading place for natural gas in the region.
The Parties will cooperate to support the development of the Balkan Gas Hub by exchanging know-how and best practice regarding set-up and operation of a gas hub and information on EU legal and regulatory matters. CEGH will also support gas exchange trading in Bulgaria by providing assistance, services and information.
An important aspect of the cooperation between BTG and CEGH is the evaluation of a further partnership in the Balkan Gas Hub in regard to the development, set-up, implementation and operation through service agreements or even deepened cooperation.
Gottfried Steiner, CEO of Central European Gas Hub AG:
“We are very proud to cooperate with Bulgartransgaz on the development of the Balkan Gas Hub. Bulgaria will play a key role for security of supply and competitiveness of Southeast Europe. The successful development of the Austrian CEGH in the heart of Europe has shown that a liquid gas trading place is essential for this transformation.”
Vladimir Malinov, CEO of Bulgartransgaz EAD:
“First, I would like to thank our partners from CEGH for the excellent ongoing cooperation and support. This continued cooperation will support stable trading conditions for the regional Balkan Gas Hub, covering the markets in South and Central Europe (SCE). Together, Bulgartransgaz EAD and CEGH will evaluate how to contribute to the achievement of the goal of the Energy Union to provide the necessary conditions for market liquidity in the Region of SCE. The main goal that we will reach through the MoU is to establish an environment and partnership that will facilitate that the Balkan Gas Hub will be developed as an EU-wide recognized place for natural gas trading.”