Overgas

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Overgas is the biggest private gas distribution company in Bulgaria. Founded in 1992, its mission is to provide an energy alternative and make natural gas accessible to the Bulgarian market by developing and offering gas infrastructure services. Eighteen years later, Overgas is a well-established leader in its field thanks to its innovative strategies and a dedicated team that has been steering the company through challenging times. 

The first networks were laid in 1993 by the first Bulgarian private construction company, qualified in constructing gas pipelines—Overgas Engineering, which is still part of the Overgas group. 

The year 1994 marked the launch of gasification in the country. The first cubic meter of natural gas was sold in the city of Parvomay, while potential customers began to appreciate the little known, at the time, advantages of the eco-friendly fuel.

A year later Overgas started its partnership with Gazprom. The brand new cooperation with the Russian company paved the way for the first gas-delivery contract—the initial step on the challenging path ahead was made.

By the end of 1998, Overgas was already a major shareholder in 26 gas distribution companies with 18 million dollars worth 120 kilometers of gas infrastructure in place. It was at that point when the company, alongside with Shell and a few other companies established the Bulgarian Oil and Gas Association.

In 2000, Overgas co-founded the European Business Congress, which became a member of the gas center under the United Nations Economic Commission of Europe and other prestigious international organizations.

Gasification in Bulgaria

The first stage of the project for the gasification of Bulgarian cities was completed at the end of 2003, when more than 616 kilometers of gas distribution network were constructed, providing 127 thousand potential consumers in the industrial, commercial and household sectors with access to natural gas.
In 2004 the company initiated the gasification of Sofia, Varna and Ruse — three of the biggest cities in Bulgaria. The investments for implementation of the three projects were as follows: €49 million for Sofia, €27 million for Varna, and €10 million for Ruse. The total amount of investments planned for 25 cities in 2004 covered: 312 kilometers of gas distribution networks; 51 kilometers of gas main branches; 25,400 installations.

The company soon became the largest natural gas distributor and supplier in Bulgaria, affirming its nearly 80 per cent market share. Two years later the length of the gas infrastructure in the country exceeded 1600 kilometers, supplying 21,000 customers. Later in 2006 Overgas received the Superbrands Award for the 2005 most famous energy trade mark.

In 2007 Overgas was given the A-A+ short term credit rating assigned by the Bulgarian Credit Ratings Agency. For a country like Bulgaria, such a combination of ratings is unique. Almost all of Overgas subsidiaries received the award for most dynamically developing company in the respective region. However, there was a lot more to be done. The company started diversifying its business by working on new projects, one of which was the Virtual Gas Pipeline. Its initiation and realization would enable customers remotely located from any of the company’s pipelines to benefit from the advantages of the blue fuel.

Currently Overgas holds 10 out of 62 licenses for natural gas distribution and its subsidiaries supply 51 municipalities, including Bulgaria’s biggest cities. The length of the gas distribution network tops 2000 kilometers and covers 50 per cent of Bulgaria’s population. The active cooperation of the company with the municipalities is one of the most successful Bulgarian partnership projects between the public and the private sector.

Overgas has invested over €150 million in the enlargement of its networks. In practice the company now covers 63 per cent of the gas distribution market in the country and delivers the blue fuel to more than 45,000 Bulgarian doorsteps.

In the future, Overgas aims to continue accelerating the development of the energy market—from highly state monopolized into a competitive one. The company is focusing on increasing natural gas consumption in the household sector at a higher pace, compared to the total energy consumption of the country.
In implementation of the National Program for Gasification of Bulgaria Overgas, together with its partners ensures increased investments in the industry. The company attracts foreign investors and environmental funds for financing the gasification of sites polluting the environment.

CSR activities

Towards the end of the first decade of the 21st century, Overgas is a community of 1,800 employees, over 15,000 children and youths involved in the company’s education, culture, sports and leadership initiatives and 45,000 consumers of the European blue fuel.

Overgas has nurtured thousands of experts in new professions, it has supported hundreds of young people to complete their studies in prestigious world universities, and it has invested in Bulgarian culture as much as the budget of a medium-sized municipality.

And most importantly: the company says that “the interests of our trend are entirely in line with the interests of our young European country. Not only is our community committed to a new product, not only does it has a new business strategy and sends new messages, but it is also an incubator of successful and self-confident people. We are fondly fostering a collective morality that bids: ‘Serve the community to the best of your abilities’. Our program, with long-term investment in education and top qualification of the young generation in Bulgaria, includes many projects.”

Bulgarian School

The Bulgarian School educational project is seeking to amalgamate the spirit of the best Renaissance traditions that have stood the test of time, with innovative European methods of training. The Bulgarian School currently involves 200 children—the youngest are in the Sunny Bunny kindergarten program and the others study in the company’s private school. The project is expanding with each academic year, each new stage being the next step to the ultimate goal—a twelve grade school and then—university, too.

The National Vocational School Competition for best young gas technician

The young gas technician project was launched in 2006. The initiative highlights the company’s commitment to promote the professional training level in the sphere of gas technologies and to focus young people’s attention on opportunities offered by the gas supply job market. The competition is held each year for the 12-graders specializing in Gas Equipment from 22 vocational colleges nationwide. The winning teams are awarded top-of-the range motorcycles, professional tool-kits, laptops and monthly scholarships. “Quite a big number of the finalists have been recruited in the company after finishing high school while proceeding with their university studies” the company says.

In the 2007-2008 academic year the Competition gained its place in the National calendar for extracurricular activities of the Ministry of Education and Science.
Other community related projects led by the company include National Review of Young Researchers “Energy and Mathematical Modelling”, Overgas Vocational Summer Academy, Overgas Scholarship Students, The Soul of A Source Contest, The Mathematical Kangaroo and Linguistic Kangaroo Competitions.

Trading of emissions and afforestation

Natural gas—the product underlying the mission of Overgas—on its own “saved” the atmosphere from 19,000 tons harmful emissions in 2008 alone. With 277.7 mcm natural gas delivered to the end users the company achieved a 970 ton reduction of dust emission in the year. Overgas first in Southeastern Europe traded harmful emissions for investments by the Dutch government under the Kyoto Protocol.

“Afforestation is on our longstanding agenda—‘Let Us Keep Bulgaria Green And Clean For Us And Our Children’. It started in the year 2000 with the afforestation of 2.2 hectares in the Chirpan State Forestry. Since then, 480 children from 11 Bulgarian towns have helped plant over 127 thousand trees on an area of 36.8 hectares forestry in various regions of the country” the company says.

Overgas Basket Project & Overgas Sports Club

With the deep conviction that sport not only develops physical and motive culture but also cultivates discipline and responsibility, strengthens the system of values and safeguards children from drug addiction and crime, Overgas and Young Bulgaria Foundation initiated the Overgas Basket Project in 2003. The national network of schoolchildren’s basketball teams currently involves over 3 400 children in 242 teams in 34 Bulgarian towns.

In 2006 Overgas started its own Sports Club. In the sports competition 2008/2009 the Club attracted 87 children aged 11 to 19 who have been filed with the Bulgarian Basketball Federation. The Overgas Sports Club provides all players with professional coaches, balls, outfits, training halls, international camps and tournament participation absolutely free of charge, as well as promoting the children’s spiritual and intellectual growth by free English language courses and monthly going to the theatre.

Cultural activities

Overgas is a general sponsor of the Askeer Theatre Awards—the highest recognition for each Bulgarian actor, stage manager, scenographer, playwright or composer, having committed his/her talents to Melpomena. Overgas traditionally supports Christian holy sites and temples. Through the years the company has gasified 34 churches and the iconic Bulgarian Exarchy in Istanbul at its expense. Thousands of readers have empathized with human destinies and historic events through the books published with the support of Overgas. The long sequence includes more than 20 tittles.

“Companies — these are the people. We are wrong to say that we invest in people — no. We invest in the conditions in which these people can develop. Our policy in human resources spans the overall fulfillment of Overgas potential employees starting from pre-school projects and reaching retirement age. We do not give up caring for people even afterwards. Why do it? Because the only asset a company can have are the people.” (Sasho Dontchev, Executive Director, Overgas Inc. AD)  

www.overgas.bg