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Elliott Investment Management is in preliminary negotiations to acquire a stake in a package of infrastructure assets that includes the Bulgarian section of the TurkStream gas pipeline, according to a report by The Wall Street Journal, citing people familiar with the matter.
The U.S.-based hedge fund, led by billionaire Paul Singer, recently signed a nondisclosure agreement with Bulgaria’s state gas operator Bulgartransgaz and held meetings with Bulgarian government officials in Sofia in late April.
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The targeted infrastructure includes the Bulgarian extension of the TurkStream pipeline, which transports Russian natural gas to Europe via Türkiye through the Black Sea. It remains Russia’s only operational gas conduit to the continent following the suspension or sabotage of other routes such as Nord Stream.
TurkStream delivers gas to Türkiye through one line and to countries including Serbia, Hungary, Romania, Greece, Bosnia and Herzegovina, and North Macedonia through a second.
The system has a total capacity of 31.5 billion cubic meters annually. As of January 1, 2025, following the cessation of transit via Ukraine, TurkStream has become Gazprom’s sole delivery route to Europe.
Beyond the pipeline, Elliott is also reportedly seeking access to a wider infrastructure portfolio, including data centers, fiber-optic cables, and other strategic assets. The fund is also considering refinancing Bulgartransgaz’s debt. The potential deal size has not been disclosed, and sources emphasized that talks are in the early stages with no guarantee of finalization.
Elliott, managing over $70 billion in assets, is known for activist campaigns in the energy sector. It has taken large stakes in BP and Phillips 66, pushing for strategic restructuring and expansion in oil and gas production.
The potential deal in Bulgaria aligns with Elliott’s broader investment focus and may generate significant returns. Bulgaria reportedly earns about $350 million annually from gas transit fees paid by Russia.
According to WSJ, the deal, if concluded, could solidify the delivery of Russian gas into Europe at a time when EU leaders are working to phase out reliance on Russian energy. Elliott’s investment could shield the infrastructure from future sanctions and potentially enable expansion, Bulgarian officials reportedly believe.
While the Trump administration has emphasized commercial engagement with Russia in its diplomatic efforts, a White House spokesperson declined to comment directly, stating only that the U.S. supports continued exports of American LNG to friendly European markets.
The European Commission recently proposed ending Russian gas imports by 2027, a strategy rejected by Hungary and Slovakia, which still rely heavily on the Russian supply.
Officials in Bulgaria, a NATO and EU member, reportedly view the potential U.S. investment as an opportunity to improve bilateral relations with Washington and position their infrastructure beyond the reach of future sanctions.
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