Economy July 6, 2026 04:00 PM

Bulgaria and Turkey Agree 15-Month Freeze on Long-Term Gas Deal Terms

Protocol pauses current contract conditions while firms renegotiate capacity charges and alignment with market prices

By Avery Klein
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Bulgargaz and BOTAŞ have signed a protocol that suspends the existing terms of a long-term gas contract for 15 months. During that interval, Bulgaria will pay only for the import capacity it uses under improved terms, and the two firms will work on renegotiating the contract to reflect current market conditions. The agreement follows talks between the countries' leaders and highlights shared aims on maximizing transmission capacity and expanding bilateral trade.

Bulgaria and Turkey Agree 15-Month Freeze on Long-Term Gas Deal Terms
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Key Points

  • Bulgargaz and BOTA signed a protocol freezing current long-term gas contract terms for 15 months while the firms renegotiate in line with market conditions - impacts energy and utilities sectors.
  • During the 15-month period Bulgargaz will pay only for the import capacity it uses, under improved terms instead of the standing contract conditions - relevant to gas transmission and infrastructure economics.
  • Leaders agreed on the importance of using the maximum natural gas transmission capacity and noted rising bilateral trade (turnover 9 billion / $10.30 billion); Bulgaria expressed interest in attracting higher-value Turkish investment - relevant to trade and industrial investment flows.

Bulgaria's state gas supplier Bulgargaz and Turkey's state-owned gas company BOTAŞ formalized a protocol today that freezes the current terms of their long-term gas contract for a 15-month period, the Bulgarian government press office said.

The move pauses the present contractual conditions while the two companies renegotiate terms to reflect prevailing market conditions. Under the protocol, Bulgargaz will pay only for the gas import capacity it actually uses - and will do so under improved terms rather than the pricing and payment structure set out in the existing contract, the statement said.

The agreement follows a 13-year deal struck in 2023 that provided Bulgaria with access to Turkey's gas network and liquefied natural gas terminals as a means of diversifying supply routes. Prior to that deal, Bulgaria had been nearly entirely dependent on Russian gas.

According to the government statement, the protocol was signed after discussions between Bulgaria's Prime Minister Rumen Radev and Turkish President Recep Tayyip Erdoğan held ahead of a NATO summit in Ankara. The leaders agreed that both countries have a shared interest in making full use of the maximum natural gas transmission capacity.

The press office said the two sides will continue to work on renegotiating the contract between Bulgargaz and BOTAŞ to align the agreement with current market conditions during the 15-month period.

In addition to energy-sector matters, the leaders noted a positive trend in bilateral trade, with turnover reaching 9 billion ($10.30 billion). They discussed prospective projects of mutual interest, and Bulgaria signaled its interest in attracting more high-value-added Turkish investment, the statement added.


Context and next steps

The protocol establishes a temporary framework governing payments and capacity usage while the companies negotiate a longer-term arrangement. The duration of the freeze, 15 months, provides a defined interval for these discussions. During that time, payment obligations for import capacity will be limited to capacity actually utilized by Bulgargaz and will be governed by improved terms relative to the current contract.

Diplomatic and economic signals

The signing took place after a bilateral meeting between the two countries' leaders on the sidelines of a NATO summit in Ankara. The joint statement emphasized both countries' interest in maximizing transmission capacity and highlighted the growth in trade turnover to 9 billion ($10.30 billion). Bulgaria also expressed a desire to attract more Turkish investment focused on high value-added activities.

All details in this report are drawn from the Bulgarian government's press office statement and the companies' announced protocol. No additional facts have been added.

Risks

  • Outcome of renegotiations is uncertain - the final contract terms between Bulgargaz and BOTA remain to be determined, creating uncertainty for energy contracts and infrastructure planning.
  • Effective utilization of maximum transmission capacity is an objective but not guaranteed - transmission and logistics constraints could affect how capacity is used, impacting utilities and pipeline operators.
  • Plans to attract high-value-added Turkish investment were discussed but not finalized - investment flows and project approvals remain uncertain, affecting trade and manufacturing sectors.

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