Elliott Investment Management is in early-stage discussions to acquire a stake in a portfolio of Bulgarian energy infrastructure assets that includes a key pipeline transporting Russian natural gas to Europe, according to a report by the Wall Street Journal.
The report cites unnamed sources familiar with the matter as revealing that the US hedge fund, which manages over $70bn in assets, recently signed a nondisclosure agreement with Bulgartransgaz, Bulgaria’s state-owned gas transmission operator. The move follows high-level meetings in Sofia last month between Elliott representatives and senior Bulgarian officials. In addition to equity investment, Elliott is also reportedly evaluating a potential debt refinancing package for the company.
At the centre of the deal is the TurkStream pipeline, Russia’s last major conduit for natural gas to Europe following the shutdown of other routes after the 2022 invasion of Ukraine. TurkStream supplies gas to several countries including Hungary and Slovakia via Turkey and Bulgaria. While Elliott is not pursuing the pipeline alone, it is eyeing a broader infrastructure play that includes additional Bulgarian energy assets.
Despite EU plans to eliminate Russian gas imports by 2027, countries like Slovakia and Hungary continue to rely heavily on Russian flows via TurkStream. Bulgaria, which earns around $350m annually from transit fees, is betting that US.investment in its energy network could shield it from future sanctions while supporting infrastructure expansion.
The talks align with Elliott’s growing focus on energy infrastructure. The firm has taken high-profile activist positions in BP and Phillips 66, pushing both to increase or restructure their oil and gas operations.
