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Regulator to Look into Overgas in Bulgaria

Bulgaria’s energy regulator is to look into the dealings of the company Overgas. 

It has been sparked by Russian gas giant Gazprom’s sudden halting of gas supplies to Overgas at the beginning of the year.

Overgas supplies around 10% of the Bulgarian gas market. The suspension led Overgas to sign a one month contract with Bulgarian state owned gas company, Bulgargaz, to cover the loss in supply.

Some say the suspension of gas by Gazprom, is an act of merely ‘flexing its muscles’ in the region. Whilst Gazprom have declined to comment on the matter, the Russian Foreign Ministry stated that the cut was due to commercial issues that were not addressed in recent years.

It is unclear exactly why Overgas are being investigated by Bulgarian authorities, but it is likely to do with the fact Gazprom and its subsidiaries own 50% of Overgas, something not allowed under EU energy rules.

95% of Bulgaria’s gas requirements are met by Gazprom.

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