U.S. fund eyes control over gas transit via Bulgaria

U.S.-based Elliott Investment Management is in talks to acquire a stake in Bulgartransgaz, Bulgaria’s state-owned gas transmission operator, in a move analysts say could reshape regional energy flows and provide indirect access to gas from Azerbaijan, Russia, and Central Asia via Turkey.

According to a source familiar with the talks, the potential deal would give Elliott partial control over infrastructure at the Malkoclar/Strandzha-2 entry point on the Turkish-Bulgarian border, Bulgaria’s only underground gas storage facility (Chiren), and internal distribution and transit to Central and Southeast Europe.

The fund is reportedly interested in the Turkish gas hub initiative, through which gas volumes from Azerbaijan, Turkmenistan, Russia, and other sources could reach Europe. Control over these routes could allow Elliott to influence the logistics of up to 20 bcm of Russian gas annually, as well as Caspian gas flows.

Elliott is already among the top shareholders of BP, a key partner in the Southern Gas Corridor. Other top BP investors include BlackRock, Morgan Stanley, and Goldman Sachs.

The move is seen as part of a broader geo-economic competition over control of Eastern Europe’s energy logistics. For Washington, it aligns with strategic efforts to reduce Europe’s dependency on Russian energy and strengthen the footprint of U.S. capital in EU energy infrastructure.

N.Tebrizli