Bulgaria’s State Gas Company Near Collapse Amid Market Losses
Jerusalem, 22 February, 2026 (TPS-IL) -- Sofia (BTA) – Bulgaria’s state-owned natural gas company, Bulgargaz, is in de facto bankruptcy, acting Minister of Energy Traycho Traykov announced on the “Sunday 150” program on the Bulgarian National Radio.
He cited the unfavorable market conditions, the loss of significant market share, and difficult contractual relations as reasons for the company’s condition. According to him, the company is also burdened with social commitments, including the supply of natural gas to district heating companies, which further burdens its financial balance.
According to the minister, the only reason the company is not restructured or closed immediately is the fact that it is a party to the extremely profitable contract for Bulgaria for the import of Azerbaijani gas.
Traykov identified the Maritsa East mine and Maritsa East 2 TPP as some of the most critical sectors in the state energy sector at the moment. He informed that upon taking office he had identified an administrative oversight that had threatened the payment of miners’ salaries for the current month and indicated that a solution had been found by approving intra-holding transfers in the Bulgarian Energy Holding (BEH).
Regarding the Recovery and Resilience Plan, the minister specified that the document does not require direct closure of energy capacities, but a reform of BEH is envisaged to end the practice of profitable companies subsidizing coal-fired power plants and mines. According to him, there are two main options for restructuring that would allow the absorption of European funds.
Traykov stressed that any decision must be accompanied by measures to preserve employment and to ensure alternative employment for qualified personnel in the region in order to avoid social tension. He informed that a meeting is scheduled for next week with the leaderships of the two trade unions, representatives of the European Commission and members of the cabinet, including from the Ministry of Regional Development and Public Works, as well as with the Deputy Prime Minister responsible for EU funds.
