Bulgaria's measures to promote compressed and liquefied natural gas

Bulgaria

In its bid to transpose Directive 2014/94/ЕС on the Deployment of Alternative Fuels Infrastructure, the Bulgarian Council of Ministers adopted a national policy framework (first drafted on 26 January 2017 and amended in May 2018) for developing a market for alternative fuels in the transport sector and for the deployment of a relevant infrastructure. 

The overall objective of the national policy is to create a favorable environment for the wider application of alternative fuels in the transport sector and to bring Bulgaria on par with other countries in the EU.

The policy includes suggestions and potential measures related to constructing a refuelling infrastructure for compressed and liquefied natural gas (CNG and LNG) and the promotion of transport vehicles powered by CNG and LNG.  

The current legislative framework promotes the use of alternative fuels by applying a reduced excise duty of BGN 0.85 per 1 gigajoule.  

The policy includes a variety of other measures to promote the use of natural gas such as providing a preferred special parking regime and the provision of a bonus in the evaluation process to companies using natural gas vehicles when conducting procurement under the Bulgarian Public Procurement Act. 

The policy lays down the following approach for deploying a CNG and LNG charging infrastructure and spreading it throughout the country:

  • By 2020: construction of CNG and LNG infrastructure will be focused along the transport corridors of the TEN-T network on the territory of the Republic of Bulgaria; and end-users which will be supported in the purchase and fitting of compressed natural gas installations. Funding will be extended from Operational Programs "Environment" and "Rural Regions Development Program" for personal fleet and Operational Program "Innovation and Competitiveness" for official fleets;
  • 2020-2025: the emphasis should be on building infrastructure in the regions with lower coverage of distribution network, such as: Northwestern Bulgaria and the Rila-Rhodopes region; and to support investments in a fleet of heavy goods cars and buses with LNG;
  • 2025 - 2030: the measures should be aimed at consolidating the LNG distribution network, as well as promoting new technologies in the field of alternative fuel transport.  

If you have any questions on Bulgaria's national policy for alternative fuels, please contact Kostadin Sirleshtov and Denitsa Dudevska.