Bulgarian state-owned gas transmission operator Bulgartransgaz said Friday that it has signed a 200 million levs ($119.5 million/102.3 million euro) long-term loan agreement with United Bulgarian Bank (UBB) to finance the Vertical Gas Corridor project, designed to increase transit capacity for natural gas flowing between Greece and Ukraine.
"The signing of the contract with United Bulgarian Bank is another successful stage on the path to implementing Europe's key infrastructure of the Vertical Corridor in our country," Bulgartransgaz executive director Vladimir Malinov said in a press release.
The infrastructure on Bulgarian territory is expected to be completed by October 1, 2026. The new, higher transit capacity will be offered to the market through Bulgartransgaz’s next annual capacity auction, Malinov said in another press release over the weekend.
In July, Bulgartransgaz selected UBB to provide the five-year loan during a procedure that attracted 781.8 million euro ($915 million) in financing across all bids.
Bulgaria's 2025 budget allows up to 625 million levs in state guarantees for Bulgartransgaz loans to expand its gas network.
In 2016, Greece, Bulgaria, Romania and Hungary agreed to develop the required infrastructure for the project, enabling bidirectional gas transmission among the participating countries. Ukraine, Moldova and Slovakia joined the initiative last year. The project aims to improve security of supply and diversify the sources and routes for transport of additional natural gas quantities from the south to the north.
(SeeNews, September 12, 2025)
