IRGiT S.A. and Balkan Gas Hub EAD Sign a Letter of Intent to Cooperate


Warsaw, Sofia, 11 October 2022


  • On 11 October 2022, IRGiT (Polish Commodity Clearing House) and Balkan Gas Hub EAD (BGH) have signed a letter of intent to cooperate on the further development of the Bulgarian and regional gas market.
  • The joint initiative aims to define an offering on the basis of which IRGiT will provide clearing services for the markets operated by the Bulgarian Gas Exchange.
  • IRGiT, as part of the TGE Group, has long been involved in activities supporting the development the regional gas market, including through its involvement in the SEEGAS project, of which BGH is also a participant.

According to the provisions of the letter of intent, IRGiT will define an offering of clearing services for the spot markets operated by BGH. To ensure project success, the parties intend to cooperate closely in the preparatory phase, which will include, among other things, the identification of legal and tax constraints and the creation of the necessary framework in this regard, the verification of business needs, including the identification of potential clients, the assessment of the necessary IT infrastructure, the model for clearing and cross-border bank transfer services, and the drafting, negotiation and conclusion of all necessary agreements or regulations.

“The situation on the European power and gas exchanges in recent months has demonstrated in a very particular way the need to provide the markets with clearing certainty, guarantee of delivery and mechanisms to ensure stability and security. We are pleased that, as part of the development of our offering, we are entering into a partnership with Balkan Gas Hub, through which IRGiT will contribute to strengthening the security for the Bulgarian gas market. I am convinced that our many years of experience gained on the Polish market will transform into increased attractiveness of the offering and boost the liquidity on the BGH markets” said Łukasz Goliszewski, Vice President of the Management Board of IRGiT.

“Working on this vitally important service of providing proper clearing solution for our market
is a fundamental milestone in the further development of gas trading in Bulgaria and the region. Our approach since the establishment of the company is to capitalize on best practices and solutions that meet the market needs and at the same time provide proven technology. In this sense, we are very enthusiastic about working together with IRGiT in the upcoming months to find solutions for long term benefits and additional security for the Bulgarian and the regional gas market” added
Kiril Ravnachki, Executive Director, Balkan Gas Hub EAD.

The letter of intent signed today is not the only undertaking to further develop the regional gas market in which the two entities are involved. Both IRGiT (member of the TGE Group) and BGH are actively participating in the SEEGAS initiative, led by the Energy Community Secretariat, where the Counterparts have committed to work together towards the establishment of a common regional post-trade framework rules in Southern and Eastern Europe. At the core of this cooperation is the drive to support the energy transition and facilitate cross-border trading in energy markets between Bulgaria, Greece, Hungary, Poland, Romania and Ukraine.

“It is good to see, that the SEEGAS initiative has provided a useful platform for cooperation and exchange of knowledge. We see that the gas markets of the region are coming closer together as additional gas infrastructure is being put into commercial operation, which will allow for further gas market diversification. The initiative of BGH and IRGiT shows that now, on the gas market operation side, a lot of effort is being undertaken to further improve market integration through providing clearing services. We hope that this cooperation will pave the ground for all stakeholders of the SEEGAS initiative to engage in finding a good solution with regional scope” said Gregor Weinzettel, Gas Expert, Energy Community Secretariat.

The cooperation established with the Bulgarian partner is already the second initiative that IRGiT has undertaken in recent years. In September 2019, IRGiT signed an agreement to provide consultancy services to the Lithuanian gas exchange GET Baltic. The Polish party defined an optimal collateral and clearing model as well as a risk management system for spot and forward gas markets operated by GET Baltic.


Izba Rozliczeniowa Giełd Towarowych S.A. is a member company of the GPW Group and holds a licence to operate a clearing house within the meaning of the Act on Trading in Financial Instruments, and a Financial Instruments Trading Act, and a central clearing party within the meaning of the Act on Commodity Exchanges. Drawing on its expertise, team of professionals and experience, the company focuses on transaction clearing and risk management on TGE-operated markets, guaranteeing the security of the solutions offered.

Balkan Gas Hub EAD operates a trading platform serving the needs of natural gas markets. In synergy with the physical infrastructure, BGH is Bulgarian-based, liquid commercial gas hub in the South-East Europe region. The company contributes to increasing the liquidity of the natural gas market in Bulgaria and the region of Southeast Europe. The product portfolio consists of short-term and long-term gas products with physical delivery aiming at enhancing both market transparency and as well as energy security.