Rare gases market in Bulgaria

Earlier Report Observations

From 2018, Bulgaria's gas market liberalization under the EU Gas Directive introduced network access rules and a 'gas release' program to boost competition. These measures gradually created a more open market environment, which supported the development of the rare gases sector. By 2021, increased gas volumes offered on the exchange and infrastructure investments, such as the Bulgaria-Greece interconnector for Azerbaijani gas, began enhancing gas availability, contributing to a market volume of 5 127 thousand m³ that year.

The geopolitical crisis in 2022, triggered by the war in Ukraine, led to energy instability and underscored the need for supply diversification. This accelerated the construction of alternative gas infrastructure and drove up rare gas prices, resulting in a significant rise in the market's value to $7.9 million in 2022 and $9.9 million in 2023, even as physical volume saw a slight dip followed by recovery. Continued diversification, including Azerbaijani gas deliveries, and price normalization supported both physical and value growth in 2023.

By 2024, heightened competition, record gas volumes offered via the 'gas release' program, and more flexible storage rules pushed physical market volume to 5 726 thousand m³. However, increased supply and competitive pressure lowered average prices, causing the market value to drop to $9.2 million. State-owned and private companies remained active participants, though the persistent illegal fuel market continued to impact the legal sector.

Production rare gases in Bulgaria

In value, 2017-2020, K $ US

Annual dynamics of production in Bulgaria in value, 2017-2020, K $ US

Exports rare gases from Bulgaria

Exports in kind, K m³

Bulgaria's cross-border shipments of rare gases declined for the second consecutive year. In 2020, exports amounted to 1 296 K m³, marking a significant year-on-year drop of 17.6%. Between 2017 and 2020, exports decreased by 13.3%, which translates to an annualized decline rate of 4.7%. The highest export volume was recorded in 2018 at 1 630 K m³, with the largest increase of 9.0% also occurring that year.

Annual dynamics of product's exports from Bulgaria in kind, 2017-2020, K m³

From 2017 to 2020, Greece and Romania remained the leading markets for Bulgaria's rare gas exports in kind, together accounting for 94.6% of total flows. Other trading partners played a supplementary role during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Bulgaria in kind, 2017-2020

Exports in value, K $ US

Bulgaria's foreign rare gas supplies declined for the second consecutive year. In 2020, exports reached 672 K US dollars, reflecting a substantial drop of 29.2% compared to the previous year. Between 2017 and 2020, exports decreased by 18.3%, equating to an annualized decline rate of 6.5%. The peak value was recorded in 2018 at 1 136 K US dollars, with the largest increase of 38.1% also occurring that year.

Annual dynamics of product's exports from Bulgaria in value, 2017-2020, K $ US

From 2017 to 2020, Romania and Greece formed a dominant pair of markets for Bulgaria's rare gas exports in value terms, jointly accounting for 86.2% of total flows. Other countries represented the remaining share.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Bulgaria in value, 2017-2020

Imports rare gases to Bulgaria

Imports in kind, K m³

Bulgaria's imported rare gas volumes declined for the second consecutive year. In 2020, imports stood at 3 068 K m³, showing a decline of 13.0% from the previous year. Between 2017 and 2020, imports decreased by 7.4%, which corresponds to an annualized decline rate of 2.5%. The maximum volume was recorded in 2018 at 3 596 K m³, with the largest increase of 8.5% also occurring that year.

Annual dynamics of product's imports to Bulgaria in kind, 2017-2020, K m³

From 2017 to 2020, Serbia and Ukraine remained the main markets for Bulgaria's rare gas imports in kind, jointly accounting for 85.3% of total flows. Other partners formed the remaining share.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Bulgaria in kind, 2017-2020

Imports in value, K $ US

After two years of growth, Bulgaria's cross-border shipments of rare gases declined. In 2020, Bulgaria imported 2 775 K US dollars worth of rare gases, representing a 6.0% drop compared to the previous year. Over the period from 2017 to 2020, imports increased by 11.5%, with a compound annual growth rate of 3.7%. The highest value was recorded in 2019 at 2 953 K US dollars, while the largest increase of 15.1% occurred in 2018.

Annual dynamics of product's imports to Bulgaria in value, 2017-2020, K $ US

From 2017 to 2020, Serbia, Ukraine, and Romania continued to lead as the main suppliers of rare gases to Bulgaria in value terms. Serbia accounted for 47.3% of imports, Ukraine for 26.0%, and Romania for 9.5%, with these three countries jointly taking 82.8% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Bulgaria in value, 2017-2020