Bulgaria is putting the project to expand the Chiren underground gas storage facility on hold until the European Public Prosecutor’s Office (EPPO) completes its investigation into the implementation of the project, Acting Energy Minister Vladimir Malinov said at a press conference on August 14.

A day earlier, the EPPO had begun raids on the offices of the Bulgarian state-owned gas pipeline operator Bulgartransgaz as part of an investigation into the expansion of the Chiren gas storage facility.

In addition to Bulgartransgaz, EPPO is investigating three other companies in different cities in Bulgaria for alleged fraud in connection with the EU-funded Chiren expansion project.

Malinov said the project would be put on hold until the EPPO’s investigation is completed, but also noted that diversification of gas supplies would be impossible without the completion of this project and the LNG terminal in Alexandroupolis. He also said that no construction work has been carried out on the Chiren expansion so far.

“I hope that the European Public Prosecutor’s Office’s inspection at Bulgartransgaz EAD on the Chiren underground gas storage expansion project will be completed as soon as possible so that we do not allow any delay of the project, which is crucial for diversification and energy security in the region,” Malinov told reporters.

“Diversification of gas supplies is impossible without the implementation of the liquefied natural gas terminal project in Alexandroupolis and the expansion of gas storage facilities in Chiren,” he added.

EPPO was contacted by the Bulgarian Energy and Mining Forum (BEMF) in February. The organization claims that Bulgartransgaz changed subcontractors after receiving an EU grant of 78 million euros for the implementation of the project. At the time, Malinov headed the company.

The BEMF stated that the replacement of subcontractors constituted a breach of the contract and could jeopardise the implementation of the project, since those involved in the project implementation had no experience in oil and gas production.

The EU has granted Bulgaria €78 million to expand the capacity of the Chiren storage facility, as the project is seen as important for the country’s faster transition from coal to green energy.

The project envisages doubling Chiren’s storage capacity from 550 million to one billion cubic metres, thereby improving gas extraction and injection capabilities.