German energy company E.ON is considering a move to enter upstream markets in Bulgaria, reports have suggested.

E.ON, one of the largest power companies in Europe, is believed to be exploring opportunities to enter the gas distribution and energy production markets in the eastern European country, SeeNews has reported.

The German outfit already owns two electricity distributors in Bulgaria and has a well established portfolio of energy interests throughout eastern Europe. However, the company is yet to establish a presence in Bulgaria’s energy production sector.

According to E.ON Bulgaria chairman Manfred Paasch, the energy titan will establish a gas distribution business in the region of Sofia Oblast, supplying gas to a potential customer base of several hundred thousand living around the Bulgarian capital.

According to SeeNew’s report, E.ON currently majority owns energy distribution utilities in the Black Sea port of Varna and the town of Gorna Oryahovitsa and wants to support these retail ventures with power production assets.