Wall Street Billionaire Bets on Putin’s Last Gas Pipeline

Paul Singer’s Elliott Management is kicking the tires on a deal that would have been unthinkable just a few years ago: buying a stake in a pipeline that carries Russian natural gas into Europe.

The pipeline in question is the Bulgarian extension of TurkStream—Russia’s last functioning gas artery to the continent. With the rest of its gas empire sanctioned, sabotaged, or politically radioactive, TurkStream is the Kremlin’s last straw clutched tightly in the hand of European demand. Now, Elliott is reportedly sniffing around that straw, according to the Wall Street Journal, possibly as part of a broader play to scoop up infrastructure assets from Bulgaria’s state-owned gas operator Bulgartransgaz, including data centers and cables.

The move, still in early-stage talks, comes at a curious time. Washington is posturing hard on energy independence and Russia containment. But Singer—hedge fund tycoon, Republican megadonor, and serial corporate agitator—has never been one to follow the script. Elliott is famous for making governments squirm (see: Argentina), and it’s currently pressuring BP to lower spending and ditch transition plans and get back to pumping more crude. It’s also trying to carve up Phillips 66 while simultaneously eyeing a deal for Citgo, Phillips' rival.

So if Singer wants to backdoor his way into Europe’s energy bloodstream through Bulgaria, well, that tracks.

Politically, the investment could offer Bulgaria two things: cash to shore up its creaky grid, and a diplomatic love note to the Trump camp. The thinking in Sofia is that an American hedge fund stake might protect the asset from future sanctions. That’s optimism, or spin, depending on your mood.

For Moscow, the symbolism is rich: a U.S. fund helping revive Russian gas exports? But it’s also pure Singer—betting on assets that others are too squeamish to touch, then squeezing out value with a crowbar and a balance sheet.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com

• Big Oil Isn’t Backing Down at $60 Oil
• US Crude Oil Output to Peak Sooner Than Expected
• The Market Is Well Supplied - So Why Is Saudi Arabia Raising Oil Prices?