Bulgaria has refining capacity that could significantly exceed domestic consumption and turn the country into an exporter of petroleum products. Former Energy Minister Alexander Nikolov told Bulgaria ON AIR.
“Europe lacks refining capacity—exactly what Bulgaria has,” Nikolov said. According to him, the refinery in Burgas has a capacity almost twice as large as fuel consumption on the Bulgarian market. He believes that by making full use of its production capabilities, the country could increase exports and generate revenues that could also be used for compensation.
The claim about a shortage of refining capacity is consistent with the European Commission’s assessment of the sector’s condition. According to the Commission, refineries in the European Union supply around 70% of the aviation fuel and 85% of the diesel used in Europe. In 2024, they produced 543.7 million tonnes of petroleum products. At the same time, the sector is facing high energy costs, global competition and a gradual decline in demand for traditional fuels.
The refinery works with different types of crude oil
The question of the future of the refinery in Burgas is also linked to changes in crude oil supplies. Special Manager Evgeni Simeonov said in 2026 that the facility uses more than 52 types of crude oil supplied from South America, Africa, Libya, Iraq and Norway. According to him, processing volumes have increased in recent months and the refinery is operating normally.
These figures come against the backdrop of a reported loss of around BGN 400 million for “Lukoil Neftochim Burgas” in 2025. In the published report, the reasons are linked to lower petroleum product prices and reduced processing volumes due to a planned major overhaul. The loss shows that having a large production capacity alone does not guarantee a positive financial result.
Nikolov: “Toplofikatsia Sofia” Can Make a Profit
In the interview, Nikolov also commented on the problems facing “Toplofikatsia Sofia.” According to him, the company is not doomed to operate at a loss, but this requires changes in its management and financing model.
“Sofia is the most solvent city in Bulgaria. The infrastructure of “Toplofikatsia” makes it possible to develop many additional services,” he said. Nikolov believes that the government, parliament, Sofia Municipality and the energy regulator must develop a common model under which the company would not constantly rely on subsidies from the state budget.
His comment comes at a time when some subscribers in the capital continue to be without heating or hot water because of breakdowns and unfinished repairs. “Toplofikatsia Sofia” began gradually switching on the heating on October 29, but on November 6 it was still publishing details of active outages, with restoration deadlines specified for November.
Nikolov also warned about the impact of energy decisions on prices. He said that, in his view, accumulating debt instead of reflecting actual costs in prices postpones the problem but does not solve it. No specific deadline has been announced for increasing exports of refined products or changing the management model of “Toplofikatsia Sofia.”