Suspicion of External Interests in Bulgaria’s Gas Storage Expansion
The acting Minister of Energy, Vladimir Malinov, has raised concerns about external interests that may be seeking to delay the expansion of the Chiren gas storage facility. Instead of defending this crucial energy project for Bulgaria, which he began overseeing at Bulgartransgaz, he has decided to halt it during what may be the final days of his ministerial tenure. This announcement, made during a special briefing on Wednesday, comes just one day after it was revealed that the European Prosecutor’s Office is investigating Bulgartransgaz’s offices due to suspicions of misuse of European funds related to the expansion of Chiren.
The European Commission provided a grant of €78 million for the implementation of this key project, which is now set to be delayed for an undetermined period. The investigation focuses on one of the public contracts associated with the project, specifically concerning the underground portion, which includes drilling for the gas storage facility. The project is being executed by the consortium “UGS Drilling Chiren,” led by Glavbolgarstroy. Other participants in the consortium include Kazakhstan’s PM Lukas, Turkey’s Botas Pipeline Services, and the Mining and Geological University, represented by the company Mingeounivers Engineering-NIS-MGU. The contract, amounting to 221 million BGN, covers the design, supply of necessary materials, and construction of drillings for the Chiren expansion. It was signed in the spring of 2023 by Vladimir Malinov in his capacity as executive director of Bulgartransgaz, which manages the project.
The basis for the investigation stems from a report submitted by the Bulgarian Energy and Mining Forum (BEMF) in early 2024. Malinov, however, emphasized that considering the project’s importance for the region, it is essential to view “the entire geopolitical framework in which this project is developing and the timing of the report.” He hopes that within the context of the investigation, the possibility of potential external interests aimed at delaying the project will be examined. “In this entire process, Bulgaria is moving forward,” he stated.
When asked who might have an interest in halting the project, Malinov replied that it is a logical and straightforward question. “I believe you can answer for yourselves who has an interest in not diversifying Bulgaria’s energy sources and ensuring supply security, given its past dependence on specific sources and deliveries of natural gas,” he said. It is likely that the Minister is alluding to Russia, as Bulgaria was 97% reliant on Russian gas supplies until a few years ago.
Regarding the aforementioned contract, he clarified that no construction activities have commenced, no payment requests have been submitted, and no payments have been made, indicating that there is no potential financial damage to the company. However, he noted that an advance payment has been made, which is 100% secured. This same contract was previously investigated in 2024 by the State Financial Inspection Agency (ADFI), which found no violations. Malinov added that he “appreciates the investigation” and that full cooperation has been extended to the European Prosecutor’s Office. “I am calm and confident that a thorough analysis will demonstrate the technical decision made for the project’s implementation,” Malinov affirmed.
The relevant minister hopes that all procedural actions will be completed as quickly as possible to avoid further delays.
Project Delays and Future Political Involvement
Recent discussions have highlighted delays in the ongoing project. In a related comment, the individual also addressed their potential role in the upcoming interim cabinet led by Goritsa Grăncharova-Kozhareva. This week, they are scheduled to meet with her, and if offered the opportunity to retain their current position, they are inclined to accept it.
