Ivan Ivanov: Gas supplies from Azerbaijan play a major role

At an open session, the Energy and Water Regulatory Commission discussed a report on the application submitted on 10.02.2025 by "Bulgargaz" EAD for approval of a price for the month of March at which the public supplier will sell natural gas to end suppliers and to persons who have been issued a license for the production and transmission of heat energy. In accordance with the requirements for publicity and transparency of the institutions, the report of the working group was published in advance on the Commission's website. The meeting was attended by the Executive Director of "Bulgargaz“ AD Veselin Sinabov, KEWR announced.

Following an analysis prepared on the basis of the data and documents submitted by "Bulgargaz“ EAD and after calculations, the Commission's report proposes the price of natural gas in March to be 87.34 BGN/MWh (excluding prices for access, transmission, excise duty and VAT).

The proposed price includes the component "price of natural gas at the entrance to the gas transmission networks", the component for the activity "public supply" under Art. 17, para. 7 of Ordinance No. 2 of 19.03.2013 on the regulation of natural gas prices (NRCPG), as well as the component under Art. 11a, para. 2 of the NRCPG, covering the costs of "Bulgargaz" EAD for storing quantities in the "Chiren" UGS, in fulfillment of obligations under the Emergency Action Plan.

The application of "Bulgargaz" EAD indicates the prices of individual suppliers and the quantities of natural gas. Of these, the public supplier has formed the total estimated quantity for the domestic market from four different sources.

The price mix for March includes the entire contracted quantity of Azerbaijani natural gas supplied via the "Bulgaria - Greece" (IGB) interconnector, in accordance with the long-term contract with Azerbaijan. These quantities cover 45.34% of the consumption for the month and are important for achieving a favorable price for the blue fuel.

"Bulgargaz" has concluded two contracts for the supply of liquefied natural gas (LNG) with traders for March, following an organized auction with requirements for a minimum supply price and a proposed payment method. The price mix for the month also includes production from the "Chiren" UGS.

The provided quantities cover the commitments of the public supplier for the month. March - to end suppliers and district heating companies, as well as the quantities under bilateral contracts with industrial customers.

At the open meeting, the head of "Bulgargaz" EAD stated that the company does not expect a significant change in the initially proposed price of 87.34 BGN/MWh. The forecasts are that the final proposed price for March will be 87.58 BGN/MWh.

"Once again, it becomes clear how important the role of gas supplies under the long-term contract with Azerbaijan is. Thanks to them, "Bulgargaz" EAD ensures normal price levels for Bulgarian household and industrial consumers, as well as for district heating companies with natural gas as the primary fuel", commented the Chairman of the KEWR Assoc. Prof. Ivan Ivanov. He also pointed out the importance of the gas storage facility - Chiren, which supplies the necessary additional quantities for domestic consumption throughout the winter season.

In accordance with the requirements of the regulatory framework, on 28.02.2025, "Bulgargaz" EAD will submit to KEVR current data forming the price of natural gas for March. On the same day, the regulator will adopt a decision approving the price at which "Bulgargaz" EAD will sell natural gas to end suppliers and to persons who have been issued a license for the production and transmission of heat energy.