The beginning of gas industry in Bulgaria was set in 1963 with the discovery of a natural gas condense field near the village of Chiren in the northwestern part of the country. The development of natural gas market and the increase in the consumption thereof in Bulgaria gave rise to the need of import. In 1971 the construction of a main gas pipeline for importing natural gas from the former Soviet Union was began and the pipeline was commissioned in 1974.
On 30.12.1973 the state-owned company Oil and Gas (Neft I Gas) was registered, and was later renamed to Gas Supply (Gazosnabdyavane) in December 1975. In the beginning of 1990 the undertaking was renamed to Bulgargaz and was further restructured as a single owner joint-stock company by order of the Council of Ministers dd. 12.05.1993. Bulgargaz EAD retained that status until the end of 2006.
Subject to the requirements of the Energy Act of the Republic of Bulgaria and of European Parliament and Council Directive 2003/55/EC concerning common rules for the internal market in natural gas in the European Union, Bulgargaz EAD was restructured both in organizational and legal aspect. On 15.01.2007 the Sofia City Court registered the restructuring of Bulgargaz EAD into Bulgargaz Holding EAD through the split-off of newly organized single owner business companies – Bulgartransgaz EAD and Bulgargaz EAD.
On 18.09.2008, with a decision of the Minister of Economy and Energy, was established Bulgarian Energy Holding EAD (BEH EAD), through renaming of Bulgargaz Holding EAD. The selected option was the optimal with regard to time, costs and legal regime.
BEH EAD is a shareholding company with 100% state owned participation. The Holding includes mini Maritca Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD.
The restructuring and energy companies consolidation model approved by the Council of Ministers of the Republic of Bulgaria is envisaged to be implemented in two stages – a financial holding and operational holding. The process of transformationof BEH companies will take several years.
BEH EAD creation aims at uniform and efficient management of the constituent business units, with adequate market behavior, functioning within the uniform strategic management. The holding shall secure the preservation and development of specific advantages of the Bulgarian energy sector, its position on the regional and European market, under strict compliance with the requirements of the European and national legislation. BEH EAD incorporation achieves more efficiency and energy services quality, costs optimization and introduction of up-to-date investment attraction mechanisms.
