INTERVIEW: Bulgartransgaz CEO sees European gas prices rising further

Europe is likely to see further gas price hikes, as low temperatures linger in some parts of the continent, countries refill depleted storage and conflicts in Ukraine and the Middle East continue to impact markets, Bulgartransgaz CEO Vladimir Malinov told Platts.

"Unfortunately, I do believe that the prices will go up," Malinov said March 30 on the sidelines of the Egypes energy conference in Cairo.

"We are at the end of the withdrawing season from the gas storages, but still we have in certain parts of Europe, like half a month or a month until, let's say, the temperatures start to rise," he said.

Europe has faced higher gas prices in recent weeks, as attacks on gas infrastructure in the Middle East have fueled major supply uncertainty.

Platts, part of S&P Global Energy, last assessed the month-ahead Dutch TTF gas price at Eur54.595/megawatt-hour on March 30, up from Eur31.400/MWh at the end of February.

Malinov said the market has shown that it is ready to accept prices at this level before the summer demand increase.

"So from that perspective, I'm not very optimistic that we could keep [prices] down at that level, at least to balance the price as of today or to bring it back to the prices like a month ago," he said.

Malinov added that the EU could intervene to support domestic energy needs, including by decreasing taxation on energy resources and easing state aid processes.

Storage targets

Malinov expects Europe will have robust gas needs into the summer, with storage levels lower than those seen in recent years and member states pushing to meet EU filling requirements.

"In the upcoming months, Europe will have a great demand," he said.

EU gas storage was 28.1% full as of March 29, according to Gas Infrastructure Europe, compared to 58.7% in 2024 and 33.6% in 2025.

EU Energy and Housing Commissioner Dan Jorgensen has called on member states to lower filling targets ahead of the 2026-27 winter season from 90% to 80% amid the supply shock straining global markets.

Malinov said setting storage targets is a tricky issue, as relatively mild winters in Europe in recent years have helped countries meet their targets.

"It's on the edge to have the proper decision to remove the targets or decrease the targets or to kill them," he said, pointing to low storage levels in Ukraine, as well as restrictions on imports of Russian gas, as adding to risks.

Malinov said the end of the Russian invasion of Ukraine is a prerequisite for EU countries to utilize Ukraine's vast gas storage.

"After the war is over, after the full restoration of Ukraine starts, it has a huge potential, because the Ukrainian storages are the biggest in the region," he said.

Russia sanctions

Adding to the pressure on EU gas suppliers is the planned phaseout of Russian gas imports. Malinov does not expect any changes to this plan despite the supply crisis triggered by the conflict in the Middle East.

"The market has shown that it could survive without the Russian gas," he said, adding that timely investment in infrastructure is reducing the risk of bottlenecks.

Malinov also called for more long-term LNG supply contracts as a way to boost the competitiveness of the super-chilled fuel relative to pipeline gas.