US-based energy development company Linden Energy has agreed to acquire 50% stake in Overgas, a privately owned gas company in Bulgaria, for undisclosed amount.

The agreement was signed as part of the Three Seas Initiative, also known as the Baltic, Adriatic, Black Sea Initiative, held in Sofia, Bulgaria.

Under the terms of the agreement, Linden will acquire the stake in Overgas that was previously owned by Russia’s Gazprom and repurchased by Overgas in December 2020.

Established in 1992, Overgas is said to be the biggest privately owned natural gas company in Bulgaria, engaged in developing and providing infrastructure services in the gasification field.

Overgas executive director Svetoslav Ivanov said: “The 3 Seas Initiative aims to develop infrastructure in the territories of the participating states which encompasses the development of energy infrastructure, including gas.

“As Linden Energy joins the companies in the Overgas Group, it has the ambition to assist in implementing the ideas of Overgas for the development of the markets in the countries in the Western Balkans by ensuring the political and financial support needed for these projects.

The acquisition is expected to allow Linden Energy to further strengthen its investment portfolio in Bulgaria and support the growth of the gas network in the region.

The company has previously made a commitment to use 10% of the Interconnector Greece-Bulgaria (IGB) pipeline capacity.

Established in 2013, Linden Energy has projects under consideration in Europe, Eastern Europe, and South Asia.

Linden Energy president Stephen Payne said: “The Linden team is very excited to continue our work in Bulgaria and the Balkans and I believe that Overgas is the perfect partner to expand from a leader in the Bulgarian gas market to a leader across the Balkan region.

“In addition to our investment, Linden will take an active role in supporting Overgas’ efforts to diversify the energy market in Bulgaria by adding other sources of natural gas, one possibility being U.S. LNG.”