A majority is taking shape in the Sofia municipal council that wants to settle the outstanding payments of stricken Sofia district heating company to gas supplier Bulgargaz in a debt-for-equity deal, Dnevnik learned from councillors on condition of anonymity. The municipality is likely to resort to the swap if no other way is found to turn around the dismal fortunes of the company. The scheme has already been employed once and as a result the state acquired a 42 per cent stake in the heating company.
Source: Dnevnik (16.01.2007)

The Varna thermal power station, owned by Czech CEZ, will switch to natural gas in the case of a coal supply shortage, said the company's executive director Ivan Bachvarov. The power station has sufficient coal supplies to meet its reserve capacity mechanism obligations towards national power utility NEK. Coal consumption at the plant totalled 1.3 mln tons in '06, 1.15 per cent more than was planned, said CEZ. The owner is concerned that the approved 9.6 per cent hike in the price at which the power station sells its output does not offset the 30 per cent jump in the cost of coal supplies which is causing the company a loss of BGN 7 per MWh of electricity sold to NEK.
Source: Dnevnik (19.01.2007)

The Italian company Enel wants to take 49 per cent in the project for the construction of NPP Belene, said Piero Gnudi, president of the company as quoted by Reuters. The company is ready to invest two billion euro in Bulgaria and another 1.5 billion in Romania, announced officials with Enel earlier. In Bulgaria the money will be used for the construction of the second nuclear power plant while in Romania they will be provided for the modernization of the power distribution network in the country. In Bulgaria the Italians are also involved the project for TPP Martiza Iztok 3. Enel has proposed to modernize the existing units and to construct new ones of about 600 mega watts each. The company has also signed a contract with Bulgargaz for studying the possibilities for the construction of a pipeline from Bulgaria, Macedonia and Albania to Italy that will be parallel to corridor No 8.
Source: Standart (19.01.2007)

The Sofia Municipal Privatisation Agency is seeking to hire a consultant for the privatisation of 56 per cent of the capital of the Municipal Insurance Company (MIC). The bid receipt deadline is March 19. The tender documents can be purchased until March 12. After the appraisal of the insurer is ready, the municipal council will decide on the sell-off format: auction, competitive procedure or bourse listing. It is expected that the municipal council will manage to unload the MIC stake before its term expires in October this year. Potential buyers would pursue the insurer, one of the nation's smallest with a market share of 0.76 per cent and January-September 2006 premium income of BGN 5.48 mln, mainly for its licence and steady position. Last year, local businessman Hristo Kovachki accumulated a 20 per cent stake in MIC after several equity transactions. Another local insurer, Lev Ins, had also notified to the municipality its interest in the company. According to municipal councillors, representatives of insurer Armeec had also inquired about the possible sell-off.
Source: Dnevnik (22.01.2007)

A month after Bulgaria and Russian gas monopoly Gazprom updated their long-term gas transit and delivery agreement, Bulgarian energy minister Rumen Ovcharov told parliament that the two sides had also discussed an equity swap involving local state-owned gas supplier Bulgargaz. Although the idea was initially rejected on political grounds, Ovcharov said it could yet be revived if it wins backing from the ruling coalition and the right-wing opposition. Experts and politicians criticised the idea, saying it would increase Bulgaria's already alarming dependence on Russian energy supplies since Gazprom would assume partial ownership of the Bulgargaz transmission network. An equity swap with Gazprom could also entitle the Russian company to a share of the Nabucco gas pipeline project which Moscow has so far tried to foil. The deal will also increase Grazprom's hold on the Bulgarian gas market through local gas distributor Overgas Inc. which owns a substantial portion of the domestic gas distribution licences. In related news, it was announced that Bulgargaz has been reregistered as a holding company comprising of transmission, sales and delivery divisions.
Source: Dnevnik (22.01.2007)

The contract for the transit of natural gas through Bulgarian territory signed between Bulgargas and Gazprom protects the interests of Bulgaria, economy and energy minister Rumen Ovcharov said. The contract guarantees the natural gas supplies, as well as an increase of the transit through the territory of the country. Bulgaria's revenue from gas transit by the end of 2030 is expected to total USD 4.7 billion.
Source: Pari (22.01.2007)

A group of Bulgarian industrial consumer of natural gas Monday issued a declaration demanding that the State Energy and Water Regulatory Commission repeal the price hike effected in early January as unlawful and ungrounded. According to the Bulgarian Federation of Industrial Energy Consumers, the power regulator failed to organise a public discussion of the hike proposal, effectively violating the Energy Act. Earlier this month, the domestic gas price was adjusted by 6.08 per cent at the insistence of state-owned gas distributor Bulgargaz. The domestic price of natural gas is set on the basis of a domestic consumption forecast, quarterly oil prices, the fluctuations of the U.S. dollar and the price of 1 per cent and 3 per cent sulphur content fuel oil. The federation contends that the regulator has overestimated domestic consumption and points out that the price of oil and of 1 per cent and 3 per cent sulphur content fuel oil have backed down. Yet another gas price hike is expected in April when the revised gas supply agreement with Russia's Gazprom takes effect. Energy minister Rumen Ovcharov said back in December that the increase will not exceed 10 per cent.
Source: Dnevnik (23.01.2007)

Bulgaria, Greece and Russia will sign an agreement for the construction of the Burgas-Alexandroupolis oil pipeline on February 7, said the Bulgarian regional development ministry. No information was immediately available on the parameters of the agreement or the concessions that Sofia made during the negotiations. Dnevnik learned from informed sources that the agreement does not resolve the dispute between Sofia and Moscow over the ownership of the Burgas terminal. If the Russian companies are granted control over the facility, they will also handle the fuel supplies pumped through the alternative Burgas-Vlore pipeline as well as Sofia's state reserve stocks which is seen by some experts as a threat to Bulgaria's national security. Russian companies Transneft, Rosneft and Gazprom Neft will own 51 per cent of the pipeline with 24.5 per cent shares each earmarked for Sofia and Athens. Russia has reportedly abandoned its demands to install Transneft as pipeline operator. Transneft will co-ordinate the supplies from the port of Novorosiisk to Alexandroupolis in Greece. The cost of the 280 km pipeline is seen at EUR 783 mln. It will pump 35 mln tons of oil annually, a capacity that could later reach 50 mln tons.
Source: Dnevnik (29.01.2007)

Melrose Resources will shortly commence a drilling programme of three firm and two optional wells in Bulgaria, news agency Dow Jones reported late last week. These will be the Izgrev, Obzor and Ropotamo wells. Melrose said, depending on drilling results, up to two further wells may be drilled. One well may test the Kamchia prospect. Melrose is 100 per cent owner and operator of the Galata gas field, offshore Bulgaria in the Western Black Sea. In addition, Melrose has a 100 per cent working interest in four exploration concessions offshore Bulgaria covering a total of over 10,000 sq m.
Source: Dnevnik (29.01.2007)

The Pleven district court has approved the auction sale of the non-core assets of bankrupt oil refinery Nova Plama. The assets that will auctioned include recreational and storage facilities, expired chemical products and transportation equipment. The appraisal of the refinery's production assets is not ready yet. The list of Nova Plama's biggest creditors includes the State Receivables Collection Agency, Biochim, UBB, DZI Bank, International Asset Bank, Bulgargaz and NEK. The company owes some BGN 300 mln to its creditors.
Source: Dnevnik (29.01.2007)

Bulgaria, Greece and Russia will discuss the text of the agreement for the construction of the Burgas-Alexandroupolis oil pipeline at a working meeting in Athens on February 7, news agency ANA reported on Monday. The final details of the agreement will be honed out at expert level, Greek regional development minister Dimitris Sioufas was quoted as saying. Last week, the Bulgarian government said the 3 parties to the project had reached consensus on the agreement and the document was to be inked on February 7. The meeting will take place in Burgas, said the Bulgarian regional development ministry, adding that Athens and Moscow were not backing off. The ministry reiterated that the agreement will indeed be signed on February 7.
Source: Dnevnik (30.01.2007)

Anton Petrov: Competitiveness is decided piece by piece Currently at the Stomana Industry site a new rolling mill is being built that will provide production of reinforcement steel and special steel products. The whole amount of the investment is EUR 45 mln. The new production line is installed by Italian Danieli, Stomana Industry is part of the Greek industrial group Viohalco that is also owner of Steelmet – Sofia, Lesko – Blagoevgrad, Sodia Med, Tempo Metal – Sofia, Thermocalibrating plant in Pernik, Sigma Is – Pernik, Steelmet Holding, Energy Solutions – Pernik, Prosal Tubes – Pernik, SID PAK Bulgaria – Sofia. When do you expect all construction works at the new facility within Stomana Industry park to be completed? - The construction works are expected to be completed until mid-2007 and the new facility to start production in October. Starting a brand new company is a long and difficult process but we are confident that until October it will be ready to start production. How this new facility will change the current situation at the company? - The new mill will be with a production capacity to 800 thous. tons which of course would not be reached immediately but having in mind the current production capacity of 700 thous. tons means that Stomana Industry will actually double its output. Within 2 years we expect that Stomana Industry will produce over 1.2 – 1.3 mln. tons steel products per annum. How do you rate Bulgarian market of steel products? Which markets will be Stomana Industry’s priority – foreign or domestic? -Our main priority will be the domestic market despite the low share that Stomana Industry currently has. Bulgarian steel market is still very small. Currently only 15% of Stomana Industry’s output is sold on the domestic market. With the building of the new rolling facility we will extend our product range and we expect that the share of our product that is sold in Bulgaria will increase to 30-40%. Bulgarian steel market is very dynamic and also has big potential as the metal products consumption is still very slow compared to the consumption in the early ‘90s that has been way higher or the consumption in some neighbor countries – like Greece for instance. If the total demand for reinforcement steel in Bulgaria is currently 350 – 400 thous. tons, in Greece it is about 2 mln. tons. There is some information that several companies have joined their forces and are trying to set dumping prices. Do you know if this is true and what is your view and reaction over such action? - We know about that case, we even called a meeting with these companies. We rate this as unacceptable and not proper activity. Such alliance forming is unacceptable because this is a sure way to set dumping prices and monopolizing certain field in the industry. The idea is simple – four companies are joining forces. They reach some big producer and demand to buy big volumes at a better price and than they earn as they sell the products at lower prices than the market price and thus they accumulate fast and easy cash. But this is just not the right way to do business – such actions cause great damages to the market as the demand and supply equilibrium is artificially changed. Do you think that the increase of gas prices is justified? - An increase by 4% since the beginning of the year and especially with such strange explanation – that TPP Varna does not have enough coal and is going to use gas instead is just ridiculous and outrageous towards clients. If for example some other company decides that it will also use gas in exchange of electricity, Bulgargas will have to increase gas prices once again as new clients has emerged. So lets say that we have one company that needs more gas, why all other companies will have to pay more? I just do not see any sense – if TPP Varna could not import enough coal why the other companies will have to pay higher gas prices? What are your expectations about the business having in mind the new contract with Gasprom? - I can not comment the new contract with Gasprom and if this increase that was negotiated before 2010 was absolutely necessary. There is not enough information that could help me to form my opinion. When within a year gas price increases by 30-35% it is obvious that there are not so many companies that will be ready to face such higher expenses. In our production process the gas price is forming between 5-8 of the total production cost of out products, but at fertilizing plants it is much higher. For sure this increase will affect the whole economy. Is the declaration against the new higher prices going to be the only reaction of the big producers? Aren’t you going to appeal in court? - We can not appeal as the deadline for appeals has already expired. As usual such major changes are often decided just before the Christmas holidays. Till the end we had the information that the increase will be by 1.7% and it will not reach 4%, but of course in the end without any discussion it was decided the increase to be 4%. But even if we had the chance to appeal the new prices – so what? Time goes by, situation changes, court cases are not solved. We had that bitter experience with the electrical energy fee – we did not win almost anything out of it. There are just so many ways to get round certain appeals. Is it necessary to play the mouse and cat game? The attractiveness of the Bulgarian economy is a combination of factors and here should be the Government – to do whatever needed to ensure economic growth, more job opportunities, higher wages and provide better life standard.
Source: Dnevnik (02.02.2007)

State-run corporations Bulgargaz and Technoexportstroy will represent Bulgaria in the International Project Company that will build the Burgas-Alexandroupolis oil pipeline. The make-up of the new joint venture is expected to be discussed by the government on Thursday when it is also scheduled to approve the draft of the pipeline agreement endorsed last week by the 3 participants in the project, Greece, Russia and Bulgaria. Location points have been designated at the Black Sea port of Burgas for the 2 unloading buoys that will service incoming tankers carrying oil for the Greece- and Albania-bound pipelines. A total of 3 independent of each other terminals will operate at the port. They will service the 2 pipelines and the Bulgarian state contingency reserve. The decision for the Bulgargaz/Technoexportstroy outfit makes redundant the specially incorporated company Universal Terminal Burgas which is co-owned by Technoexportstroy and the privately-run Frontier. The latter company learned from the media about the upcoming government decision. The trilateral agreement is likely to be signed on March 6 at the proposal of Greek regional development minister Dimitris Sioufas who has notified his Bulgarian and Russian opposite numbers. The Bulgarian state will not hold on to its stake in the pipeline for too long and will eventually offered it to private oil companies, said Bulgarian regional development minister Asen Gagauzov. The Burgas-Alexandroupolis oil pipeline is expected to be operational by 2011.
Source: Dnevnik (14.02.2007)

The private company Frontier will be out of the project for Bourgas- Alexandrupolis pipeline, said the Regional minister Mr. Asen Gagauzov yesterday. He will offer this to the government’s session on Thursday. So far the reasons for company’s leaving are yet not clear. Company’s owners are Mr. Eduard Manukian, Mr. Georgi Sotirov and Mr. Krassimir Georgiev. The latter is believed to have huge interests in the energy and to be close to the energy minister Rumen Ovcharov. Frontier said they were not informed about company’s falling out the project. The company says that in the past 2-3 months it was totally out of touch with the negotiations of the working group between Bulgaria, Russia and Greece. Frontier along with the state-owned company Technoexportstroy, which is one of the future concessionaires of the Trakia highway, established the company Bourgas Universal Terminal. The company said it had spent funds on preliminary project researches of the terminal, but they would decide on how to reimburse them after the government’s Thursday session.
Source: Sega (14.02.2007)

The International Project Company, which is to build and operate the Bourgas-Alexandroupolis oil pipeline will take control over the universal terminal of Bourgas as well. A similar development became possible after the Bulgarian government gave up its intentions to build a common infrastructure for oil pipelines to Alexandroupolis and Vlora. The terminal will now be split in three and used used by the companies operating Bourgas - Alexandroupolis and Bourgas - Vlora oil pipelines, as well as by the Contingency Reserve. Russia will control the terminal of Bourgas as Russian companies hold a 51-percent stake in the International Project Company. Bulgarian Technoexportstroy and Bulgargas Holding will acquire a 24.5% in the project. They will be able either to sell their stake or to provide the funding needed for the project, vice premier Ivaylo Kalfin said. Representatives of AMBO, which is to operate the Bourgas-Vlora pipeline supported the splitting of the terminal.
Source: Pari (16.02.2007)

Trilateral agreement on Burgas-Alexandroupolis pipeline deferred The signing of the agreement between Sofia, Athens and Moscow on the construction of the Burgas-Alexandroupolis oil pipeline has been postponed, the Bulgarian regional development ministry said on Monday, giving no further details. The ministry said the Russian side is expected to propose a new date for the signing within the current month. Sources told Dnevnik the delay was caused by the Russian side which was apparently having difficulties with the translation of the document. The same sources claim the signing ceremony will take place March 14-16 depending on a confirmation form the Greek hosts. The signing of the trilateral agreement is deferred until next week, Russian news agency RIA Novosti reported, citing informed sources. According to the online edition of Athens-based Naftemporiki, the signing of the agreement has been put off indefinitely. The Greek newspaper claims the insecurity shrouding the signing of the agreement stems from the Greek position on the deployment of elements of an U.S. anti-missile system in the Czech Republic and Poland which is interpreted by Moscow as supportive of Washington.
Source: Dnevnik (06.03.2007)

Russia, Greece, Bulgaria to sign oil deal next week Russia, Greece and Bulgaria will sign an agreement next week to build an oil pipeline between the Black Sea and the Aegean, bypassing the congested Turkish straits, the Kremlin said on Tuesday in a statement quoted by news agency Reuters. The statement said the three governments would sign the deal on the pipeline running from the Bulgarian port of Burgas to the Greek port of Alexandroupolis during Russian President Vladimir Putin's visit to Athens on March 14-15. In Sofia, the Bulgarian government said in a statement prime minister Sergei Stanishev will attend the signing. The three states have been discussing the pipeline for about a decade but Russia has pushed for a deal since winning Greek and Bulgarian agreement that three Russian state-controlled firms would share control of the pipeline, said Reuters. For years, the three governments disagreed on key issues such as who would build the pipeline, the ownership of the terminals and transit fees. They said last year that the project was finally approved and would be launched in 2009. Oil producers Rosneft and Gazprom Neft and crude oil pipeline monopoly Transneft will now share 51 per cent of the pipeline, ensuring Russia is in command. Greece and Bulgaria will share the remaining 49 per cent. According to Reuters, Sofia plans to hand its stake to state firms Bulgargaz and Transexportstroy but has said it could sell some or all of its share to oil majors such as KazMunaiGas or Chevron. Greece will participate with Hellenic Petroleum , Latsis group and the Greek unit of Gazprom, Petroleum Gas. The first stage of the EUR 700 mln pipeline will pump up to 200,000 barrels of Russian oil per day onto the Mediterranean market. A second stage could increase that volume to 700,000 bpd from around 2011. The agreement to build the pipeline could have a positive knock-on effect for another project, the Chevron-led Caspian Pipeline Consortium (CPC), which pumps oil from the Caspian Sea to the Black Sea, said Reuters. Russia has long resisted CPC's request to double the pipeline's capacity to around 1.4 mln bpd to accommodate rising oil production from Kazakhstan. Last year Rosneft, which is a shareholder in CPC, said it would only support the expansion of CPC if construction of Burgas-Alexandroupolis went ahead.
Source: Dnevnik (08.03.2007)

The second tender for assets of Nova Plama, held last week, saw some weak interest on behalf of investors. Nova Plama has already started refunding its debts to creditors with what it had bagged in the first run of the tender, one of the company administrators said. Among the greatest creditors to the bankrupted refinery are the National Revenue Agency (NRA), HVB Bank Biochim, UBB, DZI Bank, International Asset Bank, Bulgargaz, etc., as its indebtedness measures up to BGN 300 million.
Source: Dnevnik (13.03.2007)

Although 2007 will see the first real steps being made for the implementation of the Nabucco gas pipeline, the project is facing a delay of roughly 12 months at a time when Russian gas monopoly Gazprom is doubling its efforts for the extension of its competing Blue Stream gas pipeline from Turkey to Western Europe in a bid to have the project completed simultaneously or even before the Nabucco facility. The 3,300 km Nabucco pipeline will pump 13.5 to 16 bln cu m of natgas annually from the Caspian region and Iran to Central and Western Europe. The pipeline project is developed jointly by Turkish state-owned company BOTAS, Bulgaria's Bulgargaz, Hungary's MOL Rt., Austria's OMV and Romania's Transgaz SA Medias. The participants should set by mid-2007 regional units that will take charge of the project and will apply for gas distribution permits from their respective native power regulator. A tender procedure should be launched by the end of 2007 for the preodering of the delivery volumes that the five companies will be using going forward. The delivery volumes are destined for each company's home market. The companies will preorder 12-15 bln cu m while the balance to 16 bln cu m will be placed on the deregulated market, said Dimitar Gogov, executive director of Bulgargaz. He said there's been interest from 6-7 unnamed gas traders so far. Gaz de France is holding talks to become the sixth shareholder to build and own the Nabucco gas pipeline, Gogov told Reuters on Tuesday. Gogov said talks with GDF were launched after negotiations with France's Total for the stake collapsed earlier this year. Bulgargaz has said talks for a sixth partner that would have an equal stake in the project, could be held also with Germany's energy majors E.ON and RWE . On Tuesday, OMV said the final decision to launch the project had been delayed due to extended talks for finding a new partner and saw the pipeline operational as early as 2012. The delay sparked sharp criticism by Hungary, whose prime minister told the International Herald Tribune newspaper that the pipeline was taking too long to be planned and was lacking a reliable timetable for gas supplies. The Nabucco pipeline is seen as key to Europe's efforts to reduce its reliance on Russian energy, shipping the gas via Turkey, Bulgaria, Romania and Austria to western Europe, said Reuters.
Source: Dnevnik (14.03.2007)

Bulgargaz threatened the heat supply companies again. “As for now, we do not intend to stop the gas supply to the heat supply companies. However, Heat Supply-Sofia may force us to do so in case thye company keeps on accumulating huge debts after the end of the heating season”, said the procurator of Bulgargaz Georgi Gogov. Until yersterday the Sofia heta supply company had a debt of BGN 148 mln. He added that before stopping the supply, Bulgargaz will seek help from the principal of the company. Among the big debtors to Bulgargaz are the heat supply companies in Shoumen, Varna, Vratsa, Bourgas, Pleven and Plovdiv. Their debts are already reduced and none of them exceeds BGN 10 mln.
Source: Sega (14.03.2007)

Bulgargas posted BGN 143 million pre-tax profit for 2006, up by BGN 17 million compared to 2005. Bulgargas has contributed BGN 233 million to the state budget for 2006, under the form of taxes, non-tax contributions and dividend, Kiril Gegov, CEO of the company said. Bulgargas raked in BGN 1.204 billion revenue for 2006, an increase of BGN 300 million compared to the year-ago period. Gas prices rose by 24% on an average in 2006, according to the company. Bulgargas sold a total of 3.327 billion cu. m of gas in Bulgaria in 2006, up by 3.7% year on year. Companies operating in the energy and chemical sectors are the largest gas consumers in the country. Bulgargas also transited 15 billion cu. m of Russian gas to neighbouring countries in 2006, down by 1.8% compared to 2005. The volumes of natural gas transited to the Balkan countries have risen by 15% in 2007, compared to the period January-February 2006. Domestic consumption, however, has dropped by 10% in 2007 due to the smaller consumption of heating utilities prompted by the mild winter.
Source: Pari (15.03.2007)

Leading Russian gas company Gazprom may transport natural gas to western Europe through the planned Nabucco pipeline which will connect Europe with the Caspian Sea but will not take part in the financing of the project, OMV board member Werner Auli told Bloomberg news agency on March 15, 2007. The 3,300 km long pipeline is to start transporting up to 30 bln cu m gas from the Caspian Sea through Austria to southern and central Europe from 2011. The cooperation project of Austria, Turkey, Hungary, Bulgaria and Romania will cost roughly EUR 4.6 bln. Russia and especially Gazprom were so far considered competition for the Nabucco project. In June 2006 Gazprom and Hungarian sector group MOL agreed on an extension of the existing EUR 5.0 bln Blue Stream pipeline, a cooperation project between Gazprom and Italian ENI, connecting Russia with Turkey via the Black Sea. The extension project called South European Gas Pipeline (SEGP) is an alternative to Nabucco and should transport natural gas over southeastern Europe to Italy and the rest of the continent. Auli underlined that Blue Stream was not a rival project as regards Nabucco as Europe's gas consumption was constantly increasing. It was unlikely that MOL had abandoned Nabucco in favour of Blue Stream, as it was much more reasonable for the company to build as many pipelines as it could, Auli said. The Nabucco consortium is still seeking further financially strong Western European partners for the project in order to secure the assimilation of the guaranteed natural gas volumes. Latest reports suggested that Gaz de France may join in. Gazprom, however, was not in the spectrum of interest, Auli said.
Source: Dnevnik (19.03.2007)

The local companies licensed to distribute natural gas to household and industrial customers have notified the Bulgarian power regulator they plant to collectively invest BGN 107 mln in gas main this year. Citigas, a subsidiary of Italy's Gruppo Societa Gas Rimini, leads the investment spending plans with BGN 49.6 mln. The company is licensed to deploy a gas network in the Trakia region. The Italian-owned company plans to install 1,797 km of gas mains in the first 10 years of its permit lifespan. Some 170-200 km of gas mains will be laid in Plovdiv in 2007 alone. Citigas is aiming for 25,000 customers in two years' time. The regional subsidiaries of gas distributor Overgas Inc. plan to invest BGN 31.6 mln in new infrastructure this year. The consortium between Acegas and Costruzioni Dondi, licensed for the Western gas distribution region, has budgeted BGN 13.2 mln. The smallest budget for new infrastructure was reported by the Black Sea Technology Company, owned by Italy's AMGA Azienda Multiservizi S.p.A. The company owns the gas distribution permits for the Mizia and Dobrudja regions.
Source: Dnevnik (20.03.2007)

Bulgargaz demanded the State Commission for Energy and Water Regulation to decrease by half a percent the price of the natural gas as of April 1. After this change the heat and hot water price may fall s of July 1, said the chair of the regulatory body Mr. Konstantin Shushulov to journalists. If the heat power price falls from July 1, we will search a way to keep it to this level for the entire oncoming heating season, Mr. Shushulov said. According to him this is possible if there is no sharp increase in the price of the natural gas by the end of the year. The regulatory expects the heat-supply companies to declare by April 1 eventual changes in the hear power price.
Source: Darik Radio (21.03.2007)

The costs of central heating and hot water will go down from July 1, 2007, announced sources from the Bulgarian State Energy Regulatory Committee (SERC). The reason for that is expected decrease by 0.5% of the price of natural gas from April, 1. As it is known, gas is the main fuel of the central heating ventures. "We will decrease the tariffs in order to make the heads of the companies save resources. We hope that they will start managing their companies better," said Konstantin Shushulov, head of SERC.
Source: Standart (21.03.2007)

Kremikovtzi JSC is planning a 0.4 mln tons output increase in 2007 Kremikovtzi has increased its output volumes in 2006. As of information released by the metallurgical plant, in 2005 the plant has produced a total output of 1.09 mln tons while in 2006 – 1.2 mln tons. In 2007 the plant is planning to increase its output even more reaching 1.6 mln tons. There is also a constant trend of increase of the monthly gross salary, as in 2000 it was BGN 405, in 2006 – BGN 786 and in 2007 it is planned to reach BGN 903. Kremikovtzi’s debts have decreased three times since 1999. From BGN 1 024 453 thous. in 1999 to BGN 303 869 thous in 2006 (Dec 31st 2006). The biggest creditor of Kremikovtzi is Bulgargas – BGN 24 024 592. About this debt the two companies have signed a contract in 2003 saying that it will be paid back until 2013. Kremikovtzi also has liabilities to NEK – BGN 84 632 333 etc. In 2006 Kremikovtzi has paid back its debts to the National Social Security Institute – BGN 58 853 873, Bulgargas – BGN 114 921 849, NEK – BGN 88 355 873, BDZ – BGN 48 901 922 and another BGN 17 812 441 – for taxes. As of NAP information of March 16th 2007 the company has no more debts.
Source: Capital market (23.03.2007)

Russian pipeline monopoly Transneft will be in charge of pumping oil through the Burgas-Alexandroupolis pipeline, signing up oil producers and running the controller service, says the agreement on the construction of the facility signed last week by Greece, Russia and Bulgaria. The text of the document has been posted on the website of the Bulgarian regional development ministry. The Bulgarian government is expected to approve the agreement next week before it is submitted for parliamentary ratification together with the Burgas-Vlore pipeline convention inked by Sofia, Tirana and Skopje. Transneft will draft the timetables for the oil transmissions and the unloading of the tankers. Bulgarian regional development minister Asen Gagauzov has been adamant that Transneft will act as co-ordinator and that Bulgaria's Bulgargaz and Greece's Hellenic Petroleum will operate the sections of the pipeline on their respective territory. The project will be exempt from any adjustments to fees, customs duties and taxes enforced after the agreement takes effect. Ditto for the project contractors from the start of construction until the project breaks even. The trans-Balkan pipeline that will pump cheap crude to the Mediterranean and consolidate Russia's influence in the European energy market. Once launched in 2009, the EUR 950 mln link will run 279 km from the Bulgarian Black sea port of Burgas to the north Aegean port of Alexandroupolis. It will pump 700,000 barrels per day, or 35 mln tons of crude a year, with potential to rise to 50 mln per year.
Source: Dnevnik (23.03.2007)

Bulgargas Holding CEO Kiril Gegov has tendered surprisingly his resignation, which was accepted by the board of directors, the company said. Gegov, who served as CEO of Bulgargas for nearly 10 years, will remain member of the board of directors of the company. Executive director Lyubomir Denchev will succeeded Gegov as CEO of Bulgargas. The longstanding work at the company and the successfully achieved targets are among the motives for Gegov's resignation, which comes shortly after Bulgargas was restructured into a holding company. The restructured company is in charge of the natural gas supplies and trade and the Nabucco gas pipeline project. The promotion of Lyubomir Denchev, who represents the company in the Bourgas-Alexandroupolis oil pipeline project, comes at a time when the works on the project started picking up. Bulgargas strengthened its positions in the project after private company Frontier pulled out of the project.
Source: Pari (28.03.2007)

The board of state-owned gas distributor Bulgargaz Mon relieved chief executive director Kiril Gegov at his own request. Gegov, who will remain on the board of directors, quits the post after a 10-year stint and will be replaced by his deputy Lyubomir Denchev. The board has revised the articles of association of the company to put in charge an executive director instead of the current power-share between a chief and an executive director.
Source: Dnevnik (28.03.2007)

Kazakhstan officially confirmed its interest in share participation in the Bourgas-Alexandroupolis oil pipeline. The Minister of Energy and Mineral Resources Baktykozha Izmukhambetov who visited the Azerbaijani capital Baku, said that Kazakhstan wanted to buy from Bulgaria and Greece a part of the pipeline, where 51% are held by Russia, the Russian informational agency RusEnergy released Wednesday. The Minister also said that Kazakhstan was interested in project. The preliminary agreement is that Kazakhstan will participate in the project through the 49 percent share of Greece and Bulgaria, he said. A Russian consortium of the Transneft, Rosneft and Gazprom energy companies participate in the project now holding 51 percent, and Bulgaria and Greece hold equal shares of 24,5%.
Source: BTA (05.04.2007)

Gazprom CEO pays surprise visit to Sofia The unexpected trip to Sofia undertaken by Gazprom CEO Alexei Miller suggests that Moscow may be having some concerns about likely obstacles to the realisation of the Burgas-Alexandroupolis oil pipeline project. At a meeting with the Bulgarian prime minister and economy minister, Miller reportedly inquired about possible procedural glitches that the project could be facing, Dnevnik learned from a source on condition of anonymity. Last month, Bulgaria, Russia and Greece signed an accord on the creation of the 279 km pipeline which will run from the Bulgarian Black Sea port of Burgas to the north Aegean port of Alexandroupolis, bypassing the congested Turkish Bosporus Straits. The launch of the project has stirred concerns about the environmental impact of the unloading of oil tankers in the Burgas bay before the oil is transported to Greece. The project does not yet have an environment impact assessment because the company that will invest in the facility is yet to be set up. Russian oil producers Rosneft and Gazprom Neft and pipeline monopoly Transneft will share 51 per cent of the Burgas-Alexandroupolis pipeline while Greece and Bulgaria will share the remaining 49 per cent. Bulgarian deputy regional development minister Kalin Rogachev told Dnevnik in a recent interview that the project may not be implemented if the environmental hazard is too great. The source also told Dnevnik Miller insisted before the prime minister that Bulgaria speed the realisation of the project. The accord on the oil pipeline is expected to be moved for ratification by the Bulgarian parliament by the end of April.
Source: Dnevnik (06.04.2007)

Bulgaria's power regulator Tuesday granted a 35-year gas distribution permit for the territory of ski resort Bansko to local gas supplier Overgas. For the purposes of the project, Overgas will have to invest BGN 7.5 mln in a 35 km gas main linking Bansko with Simitli. In partnership with the economy ministry, Overgas will apply for project financing from the regional development funds of the EU, said Overgas CEO Sasho Donchev. The construction of the gas distribution network will begin in 2008 when 180 and 49 industrial customers are expected to be signed up. A total of 53 km of gas mains will be laid through 2027 at a cost of BGN 20 mln. The potential customer base is seen at 3,000. A possible challenge looming for the project could be the routing through the northern fringes of the Pirin nature reserve. The other bidder for the Bansko gas distribution permit was Pirin Power, co-owned by local power engineering company Enemona.
Source: Dnevnik (25.04.2007)

All Kremikovtzi liabilities are cleared Kremikovtzi does not have any liabilities to the state. This was said by the chairman of the supervisory board of Kremikovtzi JSC Alexander Tomov in March. He also introduced a paper issued by the National Revenues Agency, proving this statement. Since 2002, when Global Steel Holdings acquired the majority stake in Kremikovtzi, till now the company has paid BGN 776.441 mln to different state institutions. BGN 77 mln were paid in 2007. We periodically cover our debt installments to NEK (BGN 86 mln), Bulgargas (BGN 24 mln) and the State fund for reconstruction and development (BGN 70 mln), said Tomov. NEK and Bulgargas, confirmed this information and stated that currently they do not have any problems with Kremikovtzi. The company still have liabilities to private companies totaling BGN 124 mln.
Source: Pari (04.05.2007)

Sensors detect pollution caused by Kremikovtzi Sensors will detect the emissions around Kremikovtzi metallurgical plant. They will be mounted in the surrounding villages. This was promised by the chairman of the supervisory board of Kremikovtzi Alexander Tomov during a meeting of the ecology commission, part of the Sofia municipal council. A new environment friendly programme is already adopted at it will implemented pretty soon, added Tomov. For its implementation, about BGN 319 mln will be required over a 4-year period. Company’s experts have already developed a scheme for stopping the waste waters from the plant. Currently 7 200 workers are employed at the site and their average salary is BGN 900, said Tomov. The current liabilities to NEK, Bulgargas and other major creditors, total BGN 303 mln.
Source: Novinar (04.05.2007)

London-based banks willing to acquire Kremikovtzi’s liabilities Two London-based bans are willing to acquire Kremikovtzi’s and Bulgargas’s liabilities. The total liabilities are BGN 24 mln. Alexander Tomov announced about British interest in Kremikovtzi’s policy. The two banks are willing to become shareholders in the company by acquiring its liabilities. Tomov refused to point their names. Kremikovtzi’s old liabilities total BGN 304 mln. Despite all these debts, the average monthly salary at the metallurgical site is BGN 903. As Tomov says, there are some 54 000 people who are somehow bounded to the company. The plant is currently considering the idea of installing a new electric furnace for steel processing.
Source: Pari (04.05.2007)

Gazprom plots foray into Europe through Bulgaria Russian state-controlled gas monopoly Monday announced a new project for the transit of Russian fuel to Southern and Central Europe via Bulgarian territory. The announcement was made at a meeting in Moscow between Gazprom CEO Alexei Miler and Bulgarian economy minister Rumen Ovcharov. The implementation of the project in partnership with Bulgargaz, the Bulgarian state-owned gas distributor, will take Sofia's geostrategic position to another level, said Miler after the meeting. Ovcharov refused to give any details about the project but said it will increase several-fold the current gas transit volumes. In his view, the project could be activated as early as the beginning of June. Energy experts said the project concerns the expansion of the incumbent transit network through Macedonia to Italy and through Romania to Hungary. Ovcharov dismissed as untrue a report in Russian newspaper Komersant claiming that Moscow will tie the increase in transit volumes to the granting to Russian companies of access to the modernisation of Bulgaria's gas distribution network. Moscow has long had an eye on the gas distribution business in Bulgaria. A long-term memorandum on gas deliveries signed last year between Gazprom and Bulgargaz envisages the creation of joint ventures for the supply and distribution of natural gas. A Gazprom press release said that the transit of Russian gas via Bulgarian territory rose to 3.2 bln cu m in 2006. Before his get-together with Miler, Ovcharov met with Sergei Shmatko, CEO of AtomStroyExport, tapped to build a new 2,000MW nuclear power plant at Bulgarian Danube town of Belene. It was announced that an agreement will be signed by late May on the shipping to a Russian nuclear power plant of the disused equipment delivered to the Belene site in the early 1990s before the project was mothballed. AtomStroyExport said it has specified the Belene works that will be farmed out to Siemens and Areva. AtomStroyExport has nothing to do with the financing of the Belene project, said Ovcharov in response to media reports that the Russian company was preparing to issue bonds in a bid to secure funding for the undertaking.
Source: Dnevnik (08.05.2007)

Dalkia Bulgaria, the local unit of French utility Dalkia International, said it is interested in acquiring a 20 per cent stake in district heating company Toplofikacia-Sofia in a debt-for-equity scheme. Despite the lack of an official response to the letter the company said to this effect to the Bulgarian energy ministry in late 2006, Dalkia Bulgaria said the offer still stands. The French company is ready to settle a portion of Toplofikacia's debts that corresponds to a 20 per cent equity stake. The heating utility, co-owned by the government and the Sofia municipality (58 per cent), is some BGN 300 mln in the red. Czech utility company CEZ has also indicated it is interested in a debt-for-equity swap with Toplofikacia-Sofia. The government and the Sofia municipality have clashing ideas for the future development of the heating company which makes unlikely the privatisation of the company over the near-term. The Sofia municipality insists that the heating utility should be dismembered and then sold off in pieces while the energy ministry is pushing for the privatisation of 100 per cent of the capital in one go. Dalkia Bulgaria said it will definitely join a privatisation procedure for Toplofikacia-Sofia if such is launched. The French company, however, is not interested in a piecemeal privatisation and wants 100 per cent ownership. Dalkia said it has slated BGN 20 mln for investment over the next 5 years in the Varna district heating company which it acquired for EUR 6.8 mln in early 2007. The owner will invest in the rehabilitation of the transmission infrastructure and in the reduction of losses in transmission from the current level of 30-35 per cent to around 11 per cent. The company's developing a project for the adoption of a technology for biomass energy production at the Varna utility. The cost of the project is included in the 5-year investment program.
Source: Dnevnik (14.05.2007)

Sofia and Moscow to ink agreement on new gas pipeline Two months after endorsing the project for the Burgas-Alexandroupolis oil pipeline, Bulgaria and Russia are working on a new intergovernmental energy agreement, Dnevnik was told by a source from the Bulgarian energy ministry. The new agreement concerns the project for the transportation of Russian natural gas via Bulgaria to the rest of Europe. The planned trans-Black Sea gas pipeline will most likely connect Russian port Novorosiisk with Bulgarian port Burgas. Once it reaches Bulgarian territory, the pipe could have up to 5 onward routes to destinations in Central and Southeastern Europe, in particular Greece and Italy. There is also an option that the new pipe could replicate the route of the rival Blue Stream project and connect Turkey with Bulgaria. State-owned gas suppliers Gazprom and Bulgargaz are expected to give more details about the project in June. The implementation of the project is expected to take Sofia's geostrategic position to another level. There are still no official estimates for the likely cost of the new gas pipeline. The Blue Stream project cost USD 3.2 bln with more than half of the funds spent on the undersea section of the facility which is three times shorter than the proposed Novorosiisk-Burgas route. At the moment, Bulgargaz transits 15 bln cu m of Russian natural gas annually and has the infrastructure capacity to increase the volume to 17 bln cu m per year. In related news, Svetoslav Ivanov, deputy executive director of local gas distributor Overgas, said the new government energy strategy sets a goal of some 11 per cent of Bulgarian households switching to gas by 2011 with that share reaching 30 per cent by 2020. Only 3 per cent of Bulgarian households have already made the switch versus over 50 per cent in the rest of the EU, said Ivanov. Some 4.5 mln Bulgarians, out of a population total of 8 mln, live in municipalities with no gas distribution infrastructure.
Source: Dnevnik (23.05.2007)

The receivers of Razgrad-based glassworks Diamant said they expect to clinch a BGN 13.8 mln deal by the end of the week for the sale of the assets of the bankrupt company to Via Properties. The plant has been inoperational for over a decade. Most of the production equipment has been canibalised. Via Properties, a company active in construction, tourism and leasing, said it will invest EUR 50 mln within 2 years to reboot glass production. The product range will include flat, patterned and tableware glass. The insolvency proceedings against Diamant were initiated in January 2002 at the request of its main creditor, state-owned gas distributor Bulgargaz. The glass factory owed various creditors BGN 12 mln, including unpaid gas bills for BGN 9 mln.
Source: Dnevnik (29.05.2007)

Bulgaria's MPs gave a "green light" to the tripartite project for the construction of Bourgas - Alexandroupolis oil pipeline. Yesterday, the Bulgarian government ratified the cross-governmental agreement between Bulgaria, Russia and Greece. The majority of MPs (109) gave their vote for the construction of the oil pipeline; 19 MPs were against and 3 MPs abstained from voting. According to a prognosis made by Minister of Industry and Energy of the Russian Federation, Viktor Khristenko, a meeting of the management of the international construction company, commissioned to implement the project is due to take place by the end of May so that a start is given to the necessary legal proceedings. The cross-border agreement has already been ratified by Moscow and Athens. Bulgaria and Greece hold each 24,5 percent of the shares, whereas Moscow is the shareholder with 51 percent of the shares.
Source: Standart (31.05.2007)

Bulgarian state-owned gas distributor Bulgargaz will participate in the exploration of natural gas deposit concessions abroad, says the development strategy of the company which was presented to the parliamentary energy policy committee on Wed. The company said no talks are yet underway to join the exploration of gas deposits. The management said it has signed strategic partnership agreements with Italy's Enel, Gaz de France and OMV. Bulgargaz is in talks with Melrose to use as a repository the Galata gas deposit the British company is mining at the moment.
Source: Dnevnik (31.05.2007)

Kazakhstan will start negotiations with Bulgaria and Greece for acquiring shares from the Bourgas-Alexandroupolis oil pipeline, Nurlan Nogaev, Director of the Oil Industries Department to the Ministry of Energy and Mineral Resources of Kazakhstan, said for Interfax-Kazakhstan news agency. In this project Bulgaria and Greece hold 24,5% each and Russia holds the rest 51%.
Source: Standart (01.06.2007)

Gazprom will study a Greek proposal to build a gas pipeline alongside the Burgas-Alexandroupolis oil pipeline, the company was quote as saying by Russian online news outlet Moscow Times. That pipeline would eye the same southeast European markets as Nabucco, the project to diversify European supplies by delivering gas from Central Asia. Greek President Karolos Papoulias made the new pipeline proposal after talks with President Vladimir Putin. The pipeline could be connected at the Bulgarian port of Burgas with a link from the Blue Stream pipeline which takes gas from Russia under the Black Sea to Turkey. Gazprom has long been looking to use Blue Stream as a link to increase supplies to southeastern Europe and considered Greece as a possible transit country, said the publication. Greece had previously not shown interest in the project. Blue Stream is able to carry 16 bln cu m of gas every year, but shipped just 5.1 bcm in 2005. Gazprom has an edge over Nabucco thanks to its proven resources and possible lower costs due to laying the gas pipeline next to the oil pipeline, Vladimir Vedeneyev, an analyst at the Bank of Moscow, told the newspaper.
Source: Dnevnik (05.06.2007)

Bulgaria's power regulator will issue permits for gas distribution and for power transmission network management on a non-competitive basis if the permit area falls outside the eight regional gas distribution districts into which the country has been zoned. The no-bid award will be legislated with draft changes to the ordinance on power industry licensing which will be tabled for a public discussion on Friday. However, in case the permit is contested by more than one candidate, there will be a competition. The changes will provide for a transparent licensing procedure with clear requirements for the paperwork expected from the applicants for no-bid permits. The proposed changes will also allow the municipalities to ask the power regulator to include them in gas distribution regions where the gas distribution permit has been granted. The power regulator has so far granted gas distribution permits for the Mizia region, centered in Pleven, the West region, centered in Blagoevgrad, the Trakia region, centered in Plovdiv and the Dobrudja region, centered in Plovdiv.
Source: Dnevnik (08.06.2007)

Kazakhstan to start negotiations for the pipeline in June Kazakhstan will start negotiations to acquire 49 per cent of the shares that Sofia and Athens have in the oil pipeline that will run between the Bulgarian Black Sea port of Burgas and the Greek Aegean Sea port of Alexandroupolis, report Russian media. Talks are underway to sell the shares controlled by Bulgaria and Greece to oil corporations that will ensure the oil deliveries. This option is provided for in the trilateral agreement for the construction of the pipeline signed by Russia, Greece and Bulgaria.. Sources close to the project said Moscow would like to see a prompt sale of the shares and is reportedly backing Kazakhstan entry in the project. Russia has reportedly insisted that Sofia respond to the invitation for the negotiations within the next 3 weeks. Bulgarian regional development minister Asen Gagauzov confirmed for Dnevnik that Kazakhstan is keen to join the project but said that such negotiations could be launched after the incorporation of the company that will design and build the pipeline. Simeon Veinstoc, president of Russia's Transneft which has been tapped to operate the oil pipeline, told news agency Interfax that U.S. company Chevron and Russian-British company TNK-BP will likely negotiate for the Bulgaria and Greek stakes in the project. Transneft has also asked the Bulgarian side to speed up work on the pipeline project. Veinstock was quoted by the Russian media as criticising Sofia for failing to name the Bulgarian companies that will be involved in the undertaking.
Source: Dnevnik (11.06.2007)

Bulgaria and Greece have been subjected to pressure on the part of Russia to sell their shares in the Burgas-Alexandroupolis oil pipeline, representatives of the companies participants in the project said after the meetings conducted in Moscow, as quoted by the Mediapool news agency. The participants in the talks from Russia, Bulgaria and Greece discussed the structuring of the International Designing Company, which would finance and carry out the construction of the pipeline. Russian energy companies Transneft, Rosneft and Gazpromneft hold a fifty-one percent stake in the trans-sea pipeline, whereas the Bulgarian companies Bulgargaz and Technoexportstroy hold a 24.5 percent stake, and the stake of the Greek companies Hellenic Petroleum and Prometheus is also 24.5 percent. At the talks Bulgaria was represented by Deputy Minister of Regional Development and Public Works Kalin Rogachev and Emil Kotsev, CEO of Technoexportstroy. A participant in the meeting told The Standart that pressure was exerted on Bulgaria and Russia to sell their stakes. It was explained to them that such a move was necessary so that Kazakhstan could be included in the project, but experts say it seems more likely that the Russian companies want just to lay their hands on a bigger share in the project. Kazakhstan has already started talks with Greece on a possible acquisition of its share, it transpired at the economic forum in Saint Petersburg. The news was spread by Semyon Vainshtok, CEO of the state-owned oil pipeline monopoly Transneft. The US giant Chevron also shows appetite in the project. Kazakhstan has reportedly given Bulgaria's Minister of Regional Development and Public Works Assen Gagauzov a two-week term to decide on possible negotiations about the sale of Sofia's share in the project. "We are not going to sell anything until we see oil flowing in the pipe," Emil Kotsev said. "Bulgaria should step up the project's implementation," Semyon Vainshtok said. He added that a few days ago he sent a letter to PM Sergey Stanishev, in which he asks him to take the necessary measures to secure the speedy implementation of the project on the part of Bulgaria. "The Greeks have already come up with a definite stand on the issue, and Bulgaria is still shilly-shallying about it," Vainshtok said also. Russia has already come up with proposals for the registration of the international company, which will manage the pipeline and the draft sheet of the company's regulations. "The disagreements arose from Bulgaria's refusal to accept the decisions taken on one of the discussed issues," Vainshtok said further.
Source: Standart (11.06.2007)

The Bulgarian and Greek companies that will participate in the construction of the Burgas-Alexandroupolis oil pipeline have rejected as unrealistically short the deadlines set in the project's implementation timetable as suggested by Moscow. Representatives of the corporations will meet July 9 in Sofia to discuss the draft statutes of the company that will design and build the crude oil pipeline. Under the agreement signed by Bulgaria, Greece and Russia, the international project company should be incorporated by the end of 2007. Russian oil producers Rosneft and Gazprom Neft and crude oil pipeline monopoly Transneft have 51 per cent in the project. Greece is represented by Hellenic Petroleum/Thraki with the government retaining a 1 per cent stake. Sofia has tapped Bulgargaz and Technoexportstroy. At a meeting in Moscow a week ago, the Russian side raised the issue for the sale of the Bulgarian and Greek stake in the project. Kazakhstan has already said it is interested in buying the two states out of the project. Although the proposal was backed with intense pressure from Moscow, Sofia said no equity will change hands before the international project company is incorporated. The trilateral agreement requires the consent of all three states for a new player to join the project. Alternatively, Kazakhstan could also acquire a portion of the Russian share. Russia has reportedly insisted that Sofia say within the next 3 weeks whether or not it is willing to cash out of the project. On Sunday, Transneft asked the Bulgarian side to speed up work on the pipeline project.
Source: Dnevnik (12.06.2007)

Austrian utility company EVN plans to invest around BGN 7 mln in the Plovdiv district heating company through 2009, it was announced after the signing of the privatisation contract on Thursday. The investment resource will be spent primarily on the modernisation of the heating infrastructure. The new owner has also budgeted EUR 32 mln for the construction of a co-generation facility. EVN is paying EUR 32.1 mln for 100 per cent control of the heating utility. The new owner will be barred from divesting any equity or lowering his equity holdings below 51 per cent over the next three years. EVN also undertakes to align the operation of the utility with the EU requirements towards large combustion installations. The Austrian company has also agreed to settle an outstanding debt of BGN 12 mln owed to gas supplier Bulgargaz. In Bulgaria, EVN also owns the regional power distribution companies in Stara Zagora and Plovdiv. The Austrian company Thursday declined to comment on the progress of the sale of the Sunny Beach resort power distributor which it is poised to take over.
Source: Dnevnik (13.07.2007)

Austria's EVN signed a contract for privatisation of 100% of the heating utility in Plovdiv, Toplofikatsia. The company won the tender with a EUR 32.100 million bid. The contract provides for stiff forfeits in case of default, so it protects the public interest, Privatisation Agency CEO Todor Nikolov said. EVN undertakes to repay Toplofikatsia's BGN 12 million debt to Bulgargaz. It has to invest BGN 7 million in modernisation of the company and BGN 32 million in the installation of co-generation facilities for production of heating and electrical power. The company has to invest BGN 2.127 million in 2007 and another BGN 3.700 million in 2008. The new owner has no right to transfer shares or reduce its stake to below 51% for a period of three years. The company has to keep labour expenses unchanged for the same period.
Source: Pari (13.07.2007)

The state companies such as Bulgargaz, NEC, BDZ and other monopolists to be privatized only if they have real competitors, otherwise to stay state-owned. This said in interview the new Minister of Economy and Energy Mr. Petar Dimitorv, who also is in charge for the Privatization Agency. Over the last few month high officials from the Cabinet insist on putting out some of the state “mastodonts” of the forbidden for privatization list.
Source: Novinar (16.07.2007)

The shareholders of the international company specially incorporated to build the Nabucco gas pipeline have decided to start negotiations with Germany utility RWE on joining the project, said a sources from the Bulgarian side on condition of anonymity. Nabucco Gas Pipeline International was set up by the five companies behind the project -- Bulgaria's Bulgargaz, Austria's OMV , Hungary's MOL, Turkey's Botas and Romania's Transgaz. Bulgargaz confirmed the launch of the RWE talks. The new shareholder will get a share even with that of the others, said the source. The consortium has been seeking a sixth party to join the project and RWE was the runner-up among the candidates. The German company became a come-from-behind contender after the talks with first-choice Gaz de France stalled when Ankara refused to back the entry of the French company. The EUR 4.6 bln 3,300 km pipeline will bring Iranian and Caspian gas to big consuming countries in Europe. The 2,000 km first phase of the pipeline between Ankara in Turkey and Baumgarten in Austria will offer 8 bcm from 2012 The European Union sees Nabucco as a key supply route which should reduce the bloc's reliance on Russian gas after winter supply cuts to Europe.
Source: Dnevnik (19.07.2007)

French company Dalkia, which recently completed the take-over of the Varna district heating company, is in talks with local businessman Hristo Kovachki to buy from him the district heating companies in Burgas, Vratsa, Pleven and Sliven, Dnevnik learned from a source close to the negotiations. Dalkia Bulgaria declined to comment. The Kovachki office failed to respond to questions about the negotiations before Dnevnik went to press. Czech utility company CEZ is also interested in the Kovachki companies. CEZ Bulgaria CEO Martin Roman recently told Dnevnik that talks have been held on the acquisition of some assets controlled by Kovachki. The Vratsa district heating company went private through the local stock exchange. It was acquired by the Kamibo company for BGN 790,000. Kovachki was named as a Kamibo consultant. No data has been supplied to the power regulator on the investment that has been ploughed in the three utilities which collectively service 100,000 households. A successful deal would strengthen Dalkia's positions on the Bulgaria power market, putting it in the same bracket as Austria's EVN which recently bought the Plovdiv heating company. Dalkia is also eyeing a 20 per cent stake in the ailing Sofia district heating company under a proposed debt-for-equity scheme. The only state-owned district heating companies remaining are those in Sofia, Shumen and Pernik.
Source: Dnevnik (20.07.2007)

Bulgarian state-run Bulgargaz Holding and Austrian oil and gas corporation OMV have signed a memorandum to conduct joint Black Sea shelf drilling and co-operate for the expansion of the local gas market. The experts of the two companies are drafting an agreement specifying the projects that will be implemented jointly. The participation of the Bulgarian company in the OMV gas licences will also require financing, an issue that will be further discussed by the two partners. The OMV partnership is part of the strategy for Bulgargaz's development through 2009, said executive director Lyubomir Denchev. Bulgargaz is considering a joint venture with OMV or even joining under a management contract the Austrian company's Avanti chain of service stations which will sell, diesel fuel, gasoline A-95, propane-butane and methane, said Denchev. That would allow the holding company to set foot on the local methane market. Bulgargaz plans to build methane filling stations or a virtual pipeline system, supplying methane from compressor stations to clients within a 80 km radius. Bulgargaz is also in partnership talks with Melrose Resources Ltd. Which is licensed to drill for gas and oil in five Black Sea shelf blocks. Melrose's ongoing gas development is in the Galata concession area which should be depleted in 2008. The gas output is sold to Bulgargaz. The holding company plans to repurpose the depleted deposit into a gas repository. Bulgargaz is reviewing its long-term co-operation deals with Germany's Ruhrgas and Gaz de France. The review should be completed by the end of July. The agreements are expected to be updated with the inclusion of commitments for the implementation of concrete projects. At the moment, the partnership under the agreements is limited only to staff training initiatives, said Denchev.
Source: Dnevnik (23.07.2007)

The company that will design the planned Nabucco gas pipeline will be selected by the end of 2007, news agency Rompres quoted sources from the Romanian economy ministry as saying. The head design firm should complete its project task by 2009 when the construction of the facility is due to kick off. The pipeline should be operational by 2012. Rompres said that each of the participant countries will pick a local company to assist the work of the designer. The five companies behind the project -- Bulgaria's Bulgargaz, Austria's OMV , Hungary's MOL , Turkey's Botas and Romania's Transgaz, are currently in talks with Germany utility RWE on joining the project. The consortium has been seeking a sixth party to join the project and RWE was the runner-up among the candidates. The talks with first-choice contender Gaz de France have not been broken off, reported news agency Reuters. The negotiations had stalled when Ankara refused to back the entry of the French company. The EUR 4.6 bln 3,300 km pipeline will bring Iranian and Caspian gas to big consuming countries in Europe. The 2,000 km first phase of the pipeline between Ankara in Turkey and Baumgarten in Austria will offer 8 bcm from 2012 The European Union sees Nabucco as a key supply route which should reduce the bloc's reliance on Russian gas after winter supply cuts to Europe.
Source: Dnevnik (25.07.2007)

The city of Sofia has chosen a public auction format for the divestiture of its 56% stake in the Municipal Insurance Company (MIC). The municipal council will set in September the minimum sale price for the stake which has been valued by an independent appraiser at 6.3 mln levs. The sale procedure is expected to be concluded in October ahead of the local elections. The municipal stake is made of the 9.57% held by the city itself, the 46.41% controlled by municipal company Sofiiski Imoti and the 9.57% of municipal company Parkings and Garages. The municipal stake will not be broken up for the purposes of the privatisation procedure. Last year, local businessman Hristo Kovachki accumulated a 20% stake in MIC after several equity transactions. Another local insurer, Lev Ins, had also notified to the municipality its interest in the company. Insurer Armeec has reportedly also inquired about the possible sell-off. Potential buyers would pursue the insurer, one of the nation's smallest with a 2006 premium income of 7.4 mln levs, mainly for the sake of its licence and steady position.
Source: Dnevnik (03.08.2007)

Customers of Heat Supply-Sofia JSC currently owe BGN 190 mln to the company and the collection rate is 38 percent, said CEO Petko Milevski. Meanwhile the heat supply company owes BGN 150 mln to Bulgargaz for delivered fuel. The company commented that the low collection rate is because the equalizing bills have not yet been received. According to Milevski most of those bills will be received in September.
Source: BTA (03.08.2007)

Alma Tour, one of Bulgaria’s biggest tour operators, has bought the Tamplier holiday homes complex in local ski resort Bansko. The deal was confirmed by Alma Tour executive director Lyubomir Pankovski and former Tamplier owner Ilko Yotsev. The four-star Tamplier was among the first condo complexes to be built in Bansko. The BGN 12 mln facility offers 50 apartments on four floors. The list of amenities of the 12,000 sq m complex includes swimming pool, gym, spa center, restaurant, bar and underground parking. The buyer said the complex will continue to operate as a hotel with further apartments to be added. The tour operator has already purchased 0.5 ha of land for the expansion of the complex. An aquapark will also be built. Alma Tour also owns the Atlas hotel in local sea resort Golden Sands. The company invested BGN 12 mln in the 580-room hotel which opened in 2003.
Source: Dnevnik (07.08.2007)

Blast in Bulgarian Pipeline Cuts Supply An explosion ripped through a pipeline in Bulgaria, interrupting Russian gas supplies to Greece on Monday, authorities said. No injuries were reported, according to AP. Police officials said the explosion occurred near the town of Blagoevgrad, 50 miles south of Sofia, and damaged about 30 feet of the pipeline running beneath agricultural land. The most likely cause of the blast was a gas leak, said Angel Semerdjiev, general manager of Bulgartransgas, an affiliate of state-owned gas company Bulgargaz. "There is no other visible cause for the incident." Energy Ministry spokeswoman Veselina Velcheva said authorities were investigating the incident. A recent inspection had shown "that everything was in good order," she said. A police spokesman said safety systems in the pipeline automatically shut off the flow of gas and the situation was under control. The area was cordoned off and measures taken to prevent any risk from the gas to people living nearby. Repairs were being carried out on the damaged part of the pipeline, and Semerdjiev said the flow of gas should be back to normal within 48 hours. Velcheva said earlier that the work could take up to 78 hours. Bulgargaz transports gas from Russia's Gazprom through Bulgaria to Greece, Macedonia and Turkey.
Source: Other (07.08.2007)

"Bulgarian tankers will supply oil for the Bulgarian sector of Bourgas-Alexandroupolis oil pipeline. At least two Bulgarian vessels will be shipping crude oil to Novorossiisk. The Bulgarian tankers will compete with Greek and Russian vessels in the tenders for crude oil shipping," said Assen Gagauzov, Bulgaria's Minister of Regional Development and Public Works. Yesterday, Minister Gagauzov and Interior Minister Rumen Petkov had talks with Bourgas Deputy Mayor Venelin Todorov and some municipal councilors. The ministers promised that part of the collected crude oil transit fees would be granted to Bourgas Municipality to help the city solve some of its environmental and infrastructure problems. The expected revenues to the State Fisc from Bourgas-Alexandroupolis project vary between thirty-five and fifty million US dollars a year and about fifteen million of this money will be granted to Bourgas Municipality. Minister Gagauzov also said that only the latest and the safest technologies would be used in the construction of the necessary facilities.
Source: Standart (08.08.2007)

Bulgarian state-run Bulgargaz Holding gearing to go public Bulgarian state-owned Bulgargaz Holding is preparing to list on the local and international stock markets. The holding was incorporated in late 2006 to comply with EU requirements for the unbundling of natural gas trade and transmission operations. It comprises subsidiaries Bulgartransgaz, Bulgargaz and Bulgartel. The goal is to float over the next 2-3 years a 20-30% stake first on the Bulgarian bourse, said Bulgargaz Holding chief executive director Lyubomir Denchev. The package will then be increased and listed on the London Stock Exchange, said the company official. Unless Bulgargaz Holding, with a capital of 500 mln euro, goes that route, it would not achieve parity in terms of market capitalisation with its European counterparts that are in the 2 bln to 10 bln euro range, said Denchev. The Bulgargaz management plans to meet with representatives of the Bulgarian Stock Exchange soon to discuss the listing procedure. In view of Bulgaria's EU membership, an LSE listing could happen within six months, said Denchev. The company is currently included in the list of enterprises with no privatisation option. Unless the holding goes public, there will be a push to strike it from the no-privatisation roster, said Denchev. Any Bulgargaz listings will be preceded by the adoption of a development strategy through 2011. The holding intends to hire a consultant to advise on the financial packaging of the company’s participation in projects like the Nabucco, South Stream and Burgas-Alexandroupolis pipelines. On the homefront, the company plans to grab a share of the gas business in areas left off the energy ministry-approved map of the local gas distribution regions. To this end, talks have been scheduled with the local authorities in Smolian, Kardjali, Vidin and Srednogorie. Bulgargaz Holding and Austrian oil and gas corporation OMV recently signed a memorandum to conduct joint Black Sea shelf drilling and co-operate for the expansion of the local gas market. The holding company also has co-operation deals with Italy's Enel and Gaz de France and plans to soon meet with representatives of Germany's Ruhrgas.
Source: Dnevnik (17.08.2007)

Struggling district heating company Toplofikacia Sofia has asked state-owned gas supplier Bulgargaz to agree to the rescheduling of some 150 mln levs in outstanding gas bills, said Bulgargaz executive director Dimitar Gogov. The gas distributor said it is amenable to a debt-for-equity payment scheme. Bulgargaz is owed 203 mln levs in unpaid gas bills by the domestic heating utilities carried over from the '06-'07 heating season.
Source: Dnevnik (20.08.2007)

It seems Russia has again found a way to twist arms of Bulgaria and Greece in the Burgas-Alexandroupolis project. Moscow is now trying to compel the two countries to sell their shares in the project - 24.5 percent each. Surprisingly, during the meeting in Athens the Russian experts made a proposal off the agenda, under which Bulgaria and Greece are to take the financial responsibility, if they fail to supply their quotas of crude oil for the pipeline. A meeting of the companies - partners in the International Project Company has been going on in Greece since Monday. Bulgargaz CEO Angel Semerdzhiev and Emil Kotsev, CEO of Technoexportstroy are also participants in the meeting. The clause proposed by Russia practically compels Bulgaria and Greece to sell their shares, because it is virtually impossible for them to provide the required quantity of crude oil for the pipeline, the capacity of which amounts to 35 million tons of crude oil per year on the average, or 50 million tons at the maximum. This means that Bulgaria, according to our share, is to provide eight and a half million tons of crude oil a year. The candidate buyers are Western oil companies and also the Government of Kazakhstan.
Source: Standart (29.08.2007)

A new set of conditions tabled by Moscow have raised question marks over the implementation of the Burgas-Alexandroupolis oil pipeline project and have undermined Bulgaria's possible benefits from the facility. At a meeting in Athens, the Russian side has demanded that its partners in the project, Bulgaria and Greece, provide 49% of the oil that will be pumped. Unless Sofia and Athens comply, they will be facing financial penalties. When the Bulgarian parliament ratified the intergovernmental agreement on the pipeline it was announced that the government will have no financial commitments towards the project. It was claimed that the facility will generate over $35 mln in annual income for Sofia.
Source: Dnevnik (29.08.2007)

Bulgaria attempts to slip away from Russia's energy grasp. Bulgaria's Foreign Minister Ivailo Kalfin has been entrusted with the mission to negotiate gas from Turkmenistan, The Standart learnt. A governmental delegation departs for the Caspian republic today. One of the most important meetings will take place on September 6 in Ashkhabad. Kalfin will hold talks with the President of Turkmenistan Gurbanguly Berdimuhammedow. In case an agreement is reached, the gas will be transported via the Gazprom pipelines and Bulgaria will pay only transit fees, said Deputy Minister of Energy Luchezar Borissov, member of the delegation. According to the gas directive, observed by the countries all over the world, Russia is under an obligation to allow the gas be transported via its pipelines, no matter how unpleasant this may be for the Kremlin.
Source: Standart (03.09.2007)

Bulgarian tycoon to invest 98 mln euro in new cold rolling mill Bulgarian businessman Valentin Zahariev has announced plans for a large-scale investment in a new cold rolling mill on the outskirts of capital city Sofia. A complex comprising two units for cold-rolled steel coils and one for zinc-plated steel sheets will be constructed over the next three years on the site of the Zahariev-owned Inter Pipe steel pipes factory. The size of the investment in the new Inter Pipe mill, to be located in the vicinity of Kremikovtzi, Bulgaria's biggest steel maker, is seen at 93.8 mln euro, including 25 mln euro that will be provided by Zahariev's Intertrust Holding BG. Bulgarian and international lenders will also be involved in the financial packaging of the project. Inter Pipe, which is implementing the project, has won a First Class Investor certificate from the InvestBulgaria Agency, the local investment promotion authority. The government thus undertakes to facilitate the project not only in terms of the permits that will have to be obtained but also in the interaction with state-owned utilities for the purposes of the new substation, gas main and related infrastructure that will have to be put in place. The first two cold-rolled production units will be operational by the end of 2008. They will have an annual production capacity of 0.4 and 0.3 mln tons. The output will be marketed locally as well as in the rest of the EU and Turkey. The third Inter Pipe factory will produce 0.25 mln tons of zinc-plated steel sheets annually.
Source: Dnevnik (05.09.2007)

Poland-based top-refiner PKN Orlen is the CEE’s biggest company and Lukoil Neftocchim is ranked on the highest position among the Bulgarian companies in top 500 for the past year. A total of 9 local enterprises are ranked among the top 500 CEE’s companies with the highest income, set by Rzeczpospolita - the Polish business daily, assisted by Deloitte auditors company. It shall be noted that about one third of the companies ranked in top 100 are operating in the Energy sector. The leader reported income for 2006 of EUR 13.57 bln, followed by MOL – Hungary with EUR 11.39 bln, and the Czech Skoda with EUR 7.37 bln. The local Neftocchim is ranked 65th with the revenues of EUR 1.632 bln.
Source: Sega (10.09.2007)

The state-owned stake in Heat Supply-Sofia JSC might be sold. Experts from the Ministry of Economy and the minister Petar Dimitrov himself have met representatives of the World Bank and the European Bank for Reconstruction and Development, which are the creditors of the Sofia-based company on the state-guaranteed loans. We have been calculating what is to be lost and what is to be won, if we sell the shares, said sources of ministry. The state holds 42 percent in Bulgarian’s biggest heat supply company.
Source: Standart (11.09.2007)

Sofia has balked at the proposal of natural gas major Gazprom that the Russian state-controlled company is granted a majority stake in the joint venture it will co-create with the local Bulgargaz to install and operate the stretch of the South Stream gas pipeline on Bulgarian territory. The Bulgarian side fears possible Russian ownership claims over the gas mains in case of a majority participation, Dnevnik learned from a government source that asked not to be named. An interdepartmental working group set up by the Bulgarian government is already discussing the parameters of the future bilateral agreement on the South Stream project and on the joint venture that will be incorporated by Gazprom and Bulgargaz after the document is signed. It is expected that the two sides will put pen to paper by the end of 2007.
Source: Dnevnik (11.09.2007)

Fuel prices prod Bulgarian inflation The perfect storm of recent electricity and food price gains and the just announced proposal for a 11% increase in gas tariffs could well send Bulgaria's annual inflation on track to beat all forecasts. Experts quoted by news agency Bloomberg have forecast a 1.4% month-on-month price inflation for August with the year-on-year increase seen at 9.9%. The increase in fruit and vegetable prices and the rising fuel costs have cancelled out the price deflation that is usually recorded in August, Georgi Ganev from the Center for Liberal Strategies told Bloomberg. The upward revision of gas prices requested by Bulgargaz will spike heating tariffs and production costs in the metallurgical, chemical and ceramic industries, among others.
Source: Dnevnik (12.09.2007)

The price of natural gas may go up by 10.78 per cent to slightly over BGN 353,000 per cu. m in the fourth quarter of 2007. The figure would represent an increase of BGN 34.46 compared to the price of natural gas at present, according to the estimates of state-owned gas monopoly Bulgargas, which were tabled for approval by the State Commission for Energy and Water Regulation (SCEWR) on Tuesday.
Source: mediapool.bg (12.09.2007)

Bulgaria Not to Sell Its Share of Bourgas-Alexandroupolis Pipeline Bulgaria has given up the idea of selling its share in the Bourgas-Alexandroupolis oil pipeline, the news was spread by Reuters, as quoting a Bulgarian energy expert. Initially, the Bulgarian Government planned to sell Bulgaria's share of 24,5% to the US oil giant Chevron and Kazakhstan's national oil and gas company Kazmunaigaz, Reuters writes further. A week ago, Bulgaria's Foreign Minister Ivaylo Kalfin paid a visit to Kazakhstan to negotiate the supply of crude oil for the pipeline. If Bulgaria fails to provide crude oil for the pipeline, the country should sell her share at the insistence of Russia, which is a majority shareholder in the project. "The sale of Bulgaria's share is no longer considered a possible option," Bulgargaz CEO Lyubomir Denchev said.
Source: Standart (12.09.2007)

Indian companies are interested in engaging in the Nabucco gas pipeline project via Bulgaria, it emerged at a business forum in Delhi during the state visit of Prime Minister Sergey Stanishev. "Bulgaria would welcome offers by companies that want to take part in Nabucco," Stanishev said. Economy and Energy Minister Petar Dimitrov, who is in the Bulgarian delegation accompanying Stanishev, explained that the delay in the EUR 4.6 B, 3,300 kilometre project was triggered by politics, not business.
Source: Darik Radio (13.09.2007)

Bulgargaz stooped the gas supply to Heat Supply-Pleven SPJSC for nearly three hours. The Pleven-based compny owes more than BGN 14 mln. The unpaid customers’ bills are worth more than BGN 11 mln, said chairman Ivan Getov. In case Pleven citizens pay their bills until September 30, the interest will be remitted. The heat supply this year will be BGN 2 cheaper. The price will be 76.15 BGN/MWh. Getov said that if the company does not manage to pay Bulgargaz in time, it may start the heating later.
Source: Standart (14.09.2007)

Protests against Kremikovtzi a month before the verdict Pressure over Kremikovtzi is brought a month before the final date of Ministry of environment and waters decision to whether permit Kremikovtzi to operate or close it. Civil organizations protested against the polluting production and the government’s protection. The ecology minister refused to meet the remonstrants. The final date for the department of Jevjet Chakarov to grant or refuse an integrated permit to the plant is 31 October 2007. Ecological organizations, fighting against the government decision to prolong the operations in Kremikovzi from last year, swore they would bring the case to the court in Strasbourg if the Supreme Administrative Court does not take into consideration their appeal. In their opinion the government interference was illegal and only the Ministry of environment and waters can decide whether the plant to function or not.
Source: Sega (26.09.2007)

Bulgaria's power regulator has shaved 5 levs off the gas hike requested by local distributor Bulgargaz. The watchdog is scheduled to review at an open-door meeting today the Bulgargaz proposal. The gas distributor has asked by a 34.46 lev increase to 353.98 levs per 1,000 cu m without taxes while the regulator said it is more amenable to 348.98 levs. The 10.78% upward revision requested by Bulgargaz prompted economists to warn that it could fuel inflation.
Source: Dnevnik (26.09.2007)

If the ruling coalition approves a long-time discussed plan, Bulgaria might offer minority interests in its government gas and energetic monopolies on the stock exchange in the beginning of 2008, the Minister of Economics and Energetics Petar Dimitrov announced in an interview for Reuters. The government will not consider a complete privatization of Bulgargaz and The National Electricity Company as long as they insist on defending the users and keeping the energy prices low, he said.
Source: Darik Radio (27.09.2007)

Bulgargaz, the Bulgarian state-owned gas distributor, said it is considering differentiated tariffs for industrial users tied to the consumption volume of the respective company and the scheduling of the deliveries. The proposal will have to be approved by the regulator. The watchdog is scheduled to take a final decision on a Bulgargaz proposal for a hike in domestic gas prices at a closed-door meeting on Mon. The gas distributor has asked by a 34.46 lev increase to 353.98 levs per 1,000 cu m without taxes while the regulator said it is more amenable to 348.98 levs. The 10.78% upward revision requested by Bulgargaz prompted economists to warn that it could feed inflation.
Source: Standart (27.09.2007)

Bulgaria's transmission company Bulgargaz may sell natural gas at prices lower than the ones set by the State Commission for Energy and Water Regulation (SCEWR). A similar option is possible in case the state decides to give up its dividend from the company, Petar Dimitrov, economy and energy minister, said. Estimates are currently being made, Dimitrov said. The figure at stake is BGN 51.6 million and accounts for almost half of Bulgargaz's net profit for 2006. SCEWR chairman, Konstantin Shushulov, suggested last week that Bulgargaz should give up its guaranteed 3-percent profit. This is another option for the natural gas to be sold at lower prices. Bulgargaz initially asked for an 11-percent increase in the price of natural gas. SCEWR, however, suggested that the price may be hiked by as much as 9% and the final decision will be taken today. This means that Bulgargaz will incur losses over the next three months, estimates of the company show.
Source: Pari (01.10.2007)

Bulgaria's state-owned gas firm Bulgargaz and the Toplofikatsiya heating utility in capital Sofia agreed on Friday to reschedule the payment of the debts owed by the heating firm. Toplofikatsiya owes Bulgargaz BGN 150 M for deliveries of gas, the main source of energy it uses. It will pay back the debt over the next six years. The managing boards of both firms have already approved the deal. Toplofikatsiya was found to be on the verge of bankruptcy last year after an impromptu audit, and its chief executive Valentin Dimitrov was arrested. He has since been indicted on charges of currency fraud and is being investigated for alleged money laundering and embezzlement.
Source: Darik Radio (01.10.2007)

Minister: Bulgaria to Forgo Bulgargaz Dividend to Keep Prices Low Bulgaria's cabinet could forgo its dividend from state-owned gas company Bulgargaz in order to mitigate the gas price hike, economy and energy minister Petar Dimitrov said on Friday. Bulgargaz wants prices to rise by 11% next month, but utility prices regulator DKEVR said earlier this week that it would not authorise a hike of more than 9%. DKEVR is expected to rule on the issue when it next meets on October 1. The economy ministry is currently calculating the impact of the hikes, as well as how forgoing the dividends would impact the gas prices, Dimitrov said. Bulgargaz has also offered to sell gas at lower prices to its biggest customers, like the Kremikovtsi steel mill and the Sofia heating utility Toplofikatsiya.
Source: Darik Radio (01.10.2007)

State-run gas distributor Bulgargaz and beleaguered district heating company Toplofikacia Sofia signed last week an agreement rescheduling the payment of 150 mln levs in unpaid gas bills through 2013. The deal, which will have to be reviewed by the nation's anti-trust authority to make sure it does not constitute unacceptable state aid, was made possible after Toplofikacia Sofia settled a fraction of its outstanding obligations by paying around 7 mln levs to the gas supplier. This is the second time that the two companies have hammered out an extended debt payment schedule. In 2003, Toplofikacia Sofia was allowed to spread the payment of some 60 mln levs to Bulgargaz over a five-year period. At the time, the government became a shareholder in the heating utility, converting the Bulgargaz debt into a 42% equity stake.
Source: Dnevnik (01.10.2007)

Bulgaria's utilities regulator DKEVR approved on Monday a 9,2% increase in the price of natural gas to BGN 349 per 1000 cubic metres, nearly 2,6 percentage points less than demanded by state-owned firm Bulgargaz. Although natural gas is little used in Bulgarian households, it is one of the main fuels used by Bulgarian thermal power plants and heating utilities. With weather forecasts predicting a cold winter and consumption expected to rise strongly compared to last year, which saw a much milder winter than usual, Bulgaria's government has been scrambling for solutions to minimise the impact of the hike on end users. Bulgargaz is allowed to sell gas at a lower price, but that would mean cutting into its profit margins and would need a cabinet decision in order to do so. Bulgaria's economy and energy minister Petar Dimitrov has said the ministry could forgo its dividend to temper the price hike, but needed to analyse how the measure would impact the prices first.
Source: Darik Radio (02.10.2007)

New prices hit chemistry New prices of Bulgargaz holding SPJSC will affect chemistry and metallurgy companies as well. In such companies gas is significantly smaller part of the prime cost but has an effect. State Commission for Energy and Water Regulation announced they regulate the prices, However each of the gas companies may sell below BGN 348.96. This is the first significant increase of prices after the new contract with Gasprom. Another 30% increase are expected before 2012.
Source: Standart (02.10.2007)

New Price-Tsunami to Hit Bulgaria A new price-tsunami will sweep through the pocket of the Bulgarian. Starting in 2008, electricity and natural gas prices will increase by 10% in Bulgaria, the Chairman of the State Energy Regulatory Commission (SERC) Mr. Konstantin Shushulov stated before the MPs from the Energy Commission with Bulgaria's Parliament. "The blue fuel, which raised its price in October by 9.21%, is to become more expensive by another 10% in January, 2008," Mr. Shushulov said further. "The reason for the increase is the growing prices of the alternative fuels on the Mediterranean markets," he pointed out. "Between 7 and 10% will be the hike in electricity price next year. However, it will be introduced no sooner than July because the regulatory period is one year," said Valentin Mirchev, Deputy Chairman with the (SERC). Expensive fuels are again the cause for the electricity price-hike. Shushulov also pointed out that last year's price of imported coal had went up by 20%, and this was exactly the type of coal used in most thermal power plants in Bulgaria.
Source: Standart (04.10.2007)

Bulgartransgaz, a unit of state-owned gas distributor Bulgargaz Holding in charge of natgas transmission, transit and storage operations, said it will seek to introduce differentiated tariffs for the injection, stockpiling and withdrawal of gas in the Chiren underground repository. The new tariffs will likely take effect in the first quarter of 2008. The Chiren storage tariff is set based on the inventory volume ordered by the respective client. Some customers may benefit from lower tariffs because they don't subscribe for all services offered by the Chiren repository, said Lyubomir Denchev, chief executive director of Bulgargaz Holding. In related news, it emerged that Bulgargaz's dividend payouts for 2007 will be lowered after the government opted for a dividend waiver of a yet-to-be-specified amount.
Source: Dnevnik (08.10.2007)

Bulgargas is signing a memorandum with the gas distributing companies in Bulgaria, under the auspices of the economy and energy minister Peter Dimitrov, announced the press centre of the Ministry. The contract objective is to ensure the fair dealing with all natural gas consumers. During the 4th three-month period of 2007 Bulgargas will be selling natural gas to those who have signed the contract at the price of BGN 332.30/ 1000 cubic metres (no VAT included), i.e. the price is raised by 4% in comparison with the price of the 3rd three-month period.
Source: Zastrahovatel (08.10.2007)

Bulgargaz, the Bulgarian state-owned gas supplier, said it is in talks with private counterpart Overgas Inc. to create a joint gas distribution venture. Establishing a foothold on the segment for retail gas sales to household customers is part of Bulgargaz's development strategy. The news was confirmed by Overgas Inc. which declined to comment further. The state-run corporation intends to have a majority control in the planned joint venture. The partnership will have to be approved by the energy ministry and the government because it would involve a major state-owned enterprise. Bulgargaz will also have to apply for a gas distribution licence for the new company.
Source: Dnevnik (09.10.2007)

Local gas supplier Overgas Inc. said it has marginally lifted the sale price tariffs of its subsidiaries. The average tariff for retail customers is revised to 0.073 levs/kWh, the new price for customers from the public, administrative and retail sectors is 0.062 levs/kWh while for industrial customers it is 0.053 levs/kWh. The tariff update was prompted by an increase in the price at which Overgas buys natural gas from local state-owned distributor Bulgargaz.
Source: Dnevnik (10.10.2007)

Veliko Tarnovo-based Heat Supply signed an agreement directly with Bulgargaz for blue fuel supply. So far the company paid for the supply to Rahovetzgas-96 JSC, said company’s deputy CEO Milcho Mihailov. The law allows us to negotiate a direct supply. Rahovetzgas-96 will be paid only for the energy carrier transfer from Ivancha to Veliko Tarnovo. This will reduce our costs significantly, Mihailov told. The past two heating seasons were marked by a number of conflicts between Heat Supply - Veliko Tarnovo and Rahovetzgas-96 JSC, as the gas supplier suspended for a few times the heat supply company deliveries.
Source: Borba - Veliko Tarnovo (18.10.2007)

The Pleven district heating company has brought on stream a new gas-fired GE turbine that is expected to lower heating tariffs by around 2.62 levs/MWh over the '06-'07 winter season. The utility has the go-ahead from the nation's power regulator to charge a heating tariff of 76.15 levs/MWh with taxes from Aug 1. The company invested over 13.3 mln euro in the purchase and installation of the 32MW turbine. In related news, the heating company has acknowledged a debt of 14.3 mln levs to gas supplier Bulgargaz.
Source: Dnevnik (29.10.2007)

NEK, Bulgargaz, BTC and several other big companies are out of the traditional rating of the leading Bulgarian companies and holdings, made by the Bulgarian Chamber of Commerce and Industry for seventh year in a row now. By last year they used to be ranked top positions, but now the Chamber has altered the leading criterion – in stead of the net sales revenues of the companies, the key factor this year is the profit per each BGN 100 of income. The new criterion made the Varna-based Roads and Road Facilities become leader, as last year the company ranked 86th. Practically all the companies providing communal services, electricity distribution companies all that were well-presented in 2006, dropped out of the rating. On the other hand, the top companies are construction companies and big industrial companies, except Kremikovtzi. Over 4,500 companies have applied for a participation in the rating.
Source: Sega (02.11.2007)

Top officials from the Bulgarian government will have a talk with the Russian Gazprom about the South Stream projects. Bulgarian ministers of regional development and economy Asen Gagauzov, Petar Dimitrov, his deputy Galina Tosheva and Kiril Gegov, a member of the Bulgargaz holding board of directors, will have a discussion with the Russians about the gas pipeline from Russia to Italy and the Bulgarian participation in it. In mid-2007, the Russian gas monopoly and ENI signed an agreement on the implementation of the South Stream project. 'We will request guarantees for the supplies at the South Stream entry point. They could be provided either by the Russian side or by Italy's ENI which will own the bulk of the transmitted gas volumes,' said Dimitrov.
Source: Standart (08.11.2007)

Bulgargaz may stop the reduce and even stop the gas supply for some heat supply companies, which delay their payments. The state-owned company said that this does not concern Heat Supply-Sofia JSC as it conscientiously pais its obligations. Not long ago the two companies signed an agreement for the space out of a BGN 150 mln debt.
Source: Pari (09.11.2007)

The price of the central heating in Sofia will become 20 per cent higher since New Year, if The State Commission for energy and Water Regulation accepts the required by Bulgargaz increase of the blue fuel with more than 33 per cent. The gas share in the heating is 70-80 per cent in the different heat-and-power supply, branch experts comment. This means that 1 megawatt per hour in Sofia will cost more than BGN 72 without VAT included compared to BGN 60.25 now. If the gas price increases by 20 per cent, the heating will register an increase of 14 per cent, if it increases by 10 per cent, the equivalent for the heating will be 7 per cent, experts estimate. They hope from the branch that the regulator will not change the price of the heat energy in the winter, though. They expect an increase in the price of the electricity, manufactured by the heat-and-power supply, which NEK is obliged to buy. The State Commission for energy and Water Regulation is worried by the demand for a drastic increase of the price of the natural gas, they say.
Source: 24 chasa (19.11.2007)

State-owned distributor Bulgargaz intends to request a 33.5% hike in domestic natural gas prices from January 1, 2008. If the proposal is accepted by the State Energy and Water Regulatory Commission (SEWRC), major industrial consumers like heating utilities, chemical, metallurgical and ceramics companies will pay 111.54 levs more per 1,000 cu m of gas or 443.84 levs without tax, a record increase for the past decade.
Source: Dnevnik (19.11.2007)

Bulgaria's state-owned gas company Bulgargaz said on Friday it plans to ask permission for a 33,6% price hike to BGN 444 per 1000 cubic meters from utilities regulator DKEVR, effective from January 1. The company argues the hike is justified by the record high prices for crude oil and other fuels. Such a drastic increase would hit thermal power and heating plants worst, since they are the biggest consumers of gas in the country.Bulgargaz also said it could ask for a smaller hike if gas consumption in winter is lower than expected. DKEVR's next meeting is on December 11. It could also ask for a lower increase if the economy ministry, which owns the company, agrees to subsidise the difference. Gas prices rose by 4% in October, instead of the initially planned 11%, after the ministry agreed to cut its planned dividend from the company.
Source: Darik Radio (19.11.2007)

The industry stunned by the threat of a gas price hit The heat-suppliers and the companies from Chemistry, Metallurgy and Ceramics face a new price shock because of the demanded rise of 33 percent of the gas prices starting January 2008 by Bulgargaz. If the demand is accepted by the State Commission for Energy and Water Regulation, industry consumers will pay BGN 111.54 more for 1,000 cub.m. natural gas, or BGN 443.84 (VAT not included). The increase will be a record for the last ten years. The news threw the companies in panic as they have not recovered yet from the shock of the July 30 to 45 percent rises. Currently they even refuse to calculate the reflection of the rise to their production waiting for a ‘No’ answer from the watchdog. Unofficial comments from the Ministry of Economy, a principal of the gas company, however, do not support such hopes. The industry has to get used to market prices and invest in energy efficient installations, said representatives of the Ministry Sunday. They turned down the possibility that the state withdraw their dividend from the gas company in order to cushion the price shock like they did a month and a half ago. Most of the Metallurgy furnaces are gas supplied. However, the steel prices will not increase even if the Bulgargaz demand is accepted because they depend on the international stock-markets, commented the head of the Branch Chamber of Ferrous and Non-ferrous Metallurgy Mrs. Politimi Paunova. That means that the difference will be on the steel companies. Mrs. Paunova explained that due to the lack of differentiated prices of the blue fuel for the different consumers, the industry will have to cover the whole rise, while in other countries the tariff for big consumers is lower than the tariff for the rest. According to her the fall of the USD by 20 percent from the beginning of the year has to be taken into account as well as the increase of the petrol prices pointed out in the Bulgargaz demand.
Source: Dnevnik (19.11.2007)

Shares in the energy holding that Bulgaria will set up in 2008 will be listed on the Bulgarian bourse and on one of the foreign stock exchanges, Bulgarian energy minister Petar Dimitrov said on Monday. The holding will be created through the consolidation of the Maritsa Iztok mining company, thermal power plant Maritsa Iztok 2, nuclear power plant Kozloduy, national power grid operator NEK and Bulgargaz Holding. The initial plans were to consolidate into the holding structure first the power stations and the mines, then Bulgargaz telecom division Bulgartel and NEK's telecom operations and then the gas and electricity transmission operations.
Source: Dnevnik (20.11.2007)

Bulgaria's economy minister Petar Dimitrov left the door open on Monday for more government intervention to temper the rise in the natural gas prices. "The government might intervene when the next price hike is discussed," Dimitrov said, but refused to commit himself to any definite action in that sense. Bulgaria's state-owned gas company Bulgargaz said on Friday it plans to ask permission for a 33,6% price hike to BGN 444 per 1000 cubic meters from utilities regulator DKEVR, effective from January 1.
Source: Darik Radio (20.11.2007)

The Bulgarian power regulator has asked Bulgargaz, the state-controlled gas distributor, to provide the rationale for a natural gas hike the company is contemplating for the beginning of '08. The regulator said it will everything possible to ensure the upward revision is less than the 33.5% eyed by Bulgargaz. The regulator said it has not been briefed on the idea of the energy ministry to enforce a new mechanism that will ensure simultaneous hikes in the heating tariffs and gas prices.
Source: Dnevnik (21.11.2007)

Nat'l railway carrier to hike haulage tariffs for industrial customers BDZ, Bulgaria's state-owned railway carrier, said it will raise tariffs for major industrial clients by 5.5% on average, citing the increase in electricity prices that took effect on July 1 and diesel price gains. The railway carrier has already updated its tariffs once this year, in August by 10% to 15%. Under the new tariff table, the increase for some cargo shipments transported by diesel engines will be around 30%. The biggest impact will be felt by clients shipping over short distances. The increase for them will be around 15%.
Source: Dnevnik (22.11.2007)

Kremikotvzi becomes scrap Sasho Mirchev is a secretary of the newest union Zashtita in the company organization of Kremikovtzi. He is an ex-member of Confederation of Labor – Podkrepa. He was fired because of the numerous signals for corruption in the confederation. He was inquired what is happening in the steel-maker and why there is a preparation for a strike on the ‘yellow pavement’. - Mr. Mirchev, what is happening in Kremikovtzi? - The steel mill is being chopped into pieces for almost an year. Loom 250 became a second scrap unit. Operating installations are being uninstalled. Lots of companies were engaged in order to tear the mill into pieces. It is being cut and chopped at all tracks. There is no control. The plant has become Great Andromeda Nebula. According to latest data the owner will gain BGN 1.2 bln if the whole mill is turned into scrap. Hardly someone is seeking a solution for the mill problems. The cold rolling unit does not operate since 20 November. The doors are sealed. One of the best productions before the Indian came, the plastic covered sheet iron production, is no more. - Did you ask the management what is the reason for ceasing the productions? - We made numerous signals to Alexander Tomov, but there is no response. We cannot reach Mittal. We would like to know why fully operational machinery is being cut into pieces, as well as why are company real estates being sold out in panic. - What has been sold? - We ask why apartments, mansions and stores were sold without auctions, but yet no response. Only Alexander Tomov tells what the prices will be. He manages everything and answers to no one. The state owns 25 per cent, however, nothing is done. They were in a hurry to sell everything and managed to do so only in three months. There are absurd situations in which apartments have been sold while the tenants have not been warned and the new owner go and throw them away by force. I am aware of three cases similar to this, but they are a lot more. - Are the money from cutting for future investments ot for the company liquidation? - That is the big question. These funds have to return to Kremikovtzi as the mill is finished without them. It is the only steel plant that was not granted an integrated ecological evaluation. Now the two bought unions will force the government to grant it as no money have been invested for ecology and pollution reduction. It may seem to the detriment of Kremikovtzi but the only way is to shut down the polluting installations and to modernize the remaining. The problem is that no one wants to invest. They may be granted an integrated permit but then the State will pay the fines and they will keep on stealing. - What is the Kremikotzi future? - If Kremikovtzi is not modernized up to two years, it will shut down all by itself. It is like a 100 year-old man that is being prepared for an Olympics. The death is tolerated by the state. Why is nobody looking for the debts of the company? Why are Bulgargaz closing their eyes? Other plants can pay everything, but not Kremikovtzi! Unofficial information shows that the debts is near BGN 1 bln. Half of it is owed to the state. They are saved by the good market conjuncture. Currently the metal prices are high. However, there is a cycle trend in the price collapses of 5-6 years. In a situation of such a collapse, Kremikovtzi will shut down immediately. - Do you see any solution? - The State has to intervene. Mittal has not invested a single lev in any production. A real investor has to be found and the owner has to be changed. Otherwise the plant will be a Moon sight in an year or two. The Confederation of Independent Trade Unions in Bulgaria and Confederation of Labor – Podkrepa saying that everything is normal, bearing all that in mind, is not serious. They were bought with apartments. One of the Podkrepa chairmen Luydmil Pavlov was given an apartment in Metalurg quarter, block 32. It is not clear whether he will pay for it. The former chairman Cvetozar Boyanov was given a 110 sq.m. apartment for BGN 5,000. The water supply company bought Podkrepa the Suzuki jeep.
Source: Standart (26.11.2007)

EVN Bulgaria will clear off the debts of Heat Supply-Plovdiv to Bulgargaz holding and the negotiations about this are the reason for the delayed finalizing of the deal, Todor Nikolov, the executive manager of the Privatization Agency said in an interview for Darik. This means that the deliveries of natural gas for Plovdiv will not be stopped and 40 000 clients of the Heat Supply will not be left without heating because of the unpaid BGN 14,5 million for gas.
Source: Darik Radio (27.11.2007)

Austrian utility company EVN is nearing an agreement with state-owned Bulgargaz on the unpaid gas bills of a district heating company it owns in Bulgaria, sell-off agency chief Todor Nikolov told Darik Radio on Tuesday. Bulgargaz recently warned the Plovdiv heating utility it will ration down gas supplies if the unpaid bills are not settled. The two sides are engaged in intensive negotiations and the agreement should be concluded soon, said EVN.
Source: Dnevnik (28.11.2007)

Gas price to be considered It is still unclear what the gas price increase from 1 January 2008 will be, said Minister of Economy and Energy Petar Dimitrov at an Energy Commission in Parliament meeting. He pointed out that currently Bulgargaz representatives and Ministry experts discuss the matter so that the gas price do not injure any of the parties. According to Dimitrov the situation in most of the heat supply companies is outrageous. It is not proper to assume the debts for Bulgargaz with transportation fees and other money, he said. It is possible to unite the energy companies in Bulgaria into a holding until the middle of next year, added Dimitrov.
Source: Standart (29.11.2007)

Bulgargaz, the Bulgarian state-controlled gas distributor, said it is in talks with several banks to sell a debt it is owed by Kremikovtzi, the nation's biggest steel maker. The steel mill rescheduled four years ago a 35 mln lev debt to Bulgargaz, spreading the repayment over a 10-year period. The debt has since been whittled down to 18 mln levs. Bulgargaz executive director Dimitar Gogov said there has been interest towards the debt on the part of some banks but that the talks with the Kremikovtzi management are still ahead.
Source: Dnevnik (06.12.2007)

Bulgargaz intends to propose to the nation's power regulator a 26.5% increase in domestic gas tariffs from January 1, 2008, backing off from earlier demands for a hike of 33.5%, said a source from the state-owned gas distributor on condition of anonymity. The new proposal will lift the price to 441.40 levs per 1,000 cu m. The gas distributor will motivate the proposal with the cheaper oil which recently fell from around $99 per barrel to $86.
Source: Dnevnik (07.12.2007)

Bulgargaz tries to sell Kremikovtzi debt Bulgargaz tries to sell the debt that Kremikovtzi owes to the gas holding. The matter is for BGN 19 mln. It will be offered to several banks and the talks will start immediately after New Year’s Eve, Bulgargaz informed. We are ready to negotiate with all international financial institution on the local market. Real offers will be made not until February, forecasts the holding. Until then the fund market that is currently unstable will calm. Kremikovtzi shares dropped recently due to the troubles with the implementation of the EUR 325 mln bond emission obligations. In the present conditions there can hardly be found a bank to cover more than 50 percent of the Kremikovtzi debt, said the gas monopolist. The debt of the steel-maker was rescheduled five years ago when it was BGN 36 mln. Nowadays it is cut in half. We welcome the idea of Bulgargaz. We will be able to sell our claims to a bank which is a sign for our financial stability, commented Kremikovtzi. They have not yet been approached, however, on the idea of claim sale. Other big debtors to Bulgargaz are the heat supply companies, informed ENErgy Commission deputies on Wednesday the CEO of the gas holding Lubomir Denchev.
Source: Standart (07.12.2007)

After recrunching the numbers, the Bulgarian energy ministry has come up with a domestic gas tariff increase lower than that eyed by gas distributor Bulgargaz from January 1, 2008. Pricing in current gas inventories and U.S. dollar fluctuations, the energy ministry said gas tariffs should be revised upwards only by 16%. That compares with the 33.5% increased proposed a month ago by Bulgargaz. The gas distributor is scheduled to announce Monday the exact tariff hike it has proposed to the State Energy and Water Regulatory Commission. The gas company has since back-pedaled, revising the hike down to 26.5% but sources form the commission told Dnevnik the maximum adjustment that the regulator is likely to sanction is up to 20%.
Source: Dnevnik (10.12.2007)

The price of the natural gas may go up by 16% as of the beginning of 2008, rather than by the 33% suggested by Bulgargaz, Galina Tosheva, deputy minister of economy and energy, said. The ministry's estimates show that the price hike demanded by the state monopoly is unreasonable. Some 9% of the price increase suggested by Bulgargaz may be offset by the declining value of the US dollar, according to Tosheva. When the demand was made the USD was valued at BGN 1.44 and currently it is traded for BGN 1.33. According to the Ministry reports, Bulgargaz may decrease the gas price growth by 5 more percent if the supplies in the Chiren gas storage are used. The gas in it costs less than the gas sold to us by Gazprom. According to Bulgargaz CEO Lubomir Denchev those supplies can be used only if emergency occurs. However Tosheva cannot point out what quantities from Chiren will be used and on what basis the analysis was made. 2 more percent may be dropped out of the price increase if Bulgargaz guaranteed profit is shrunk to 1 percent from 2 percent, Tosheva added.
Source: Pari (10.12.2007)

Two Heat Supplies demanded rise in the price of the heating Five of the largest heat supply companies in the country – of Sofia, Plovdiv, Varna, Burgas and Pernik, demanded rise in the prices from the State Commission for Energy and Water Regulation. The heat supplies of Sofia and Varna want a correction of the prices of the heating, and all five insist on the Commission to increase the prices, on which they sell the produced electricity to the National Electricity Company. The corrections for the heating are minimal – they want a rise from BGN 72 to 75 for one megawatt per hour in Varna, and according to the director of the heat supply in Sofia the company demand 8% rising.
Source: Sega (11.12.2007)

Bulgargaz Holding has signed a deal for the purchase of 0.1% of the outstanding stock of Romanian gas distributor Transgaz, Bulgargaz CEO, Lyubomir Denchev, said. The investment amounts to BGN 1.1 million and is Bulgargaz's first acquisition of foreign stock. Bulgargaz also plans to take part in large-scale investment projects jointly with companies such as OMV, ERV, Gaz de France, Denchev said. In order to secure funding for such projects Bulgargaz will have to get listed on the Bulgarian Stock Exchange (BSE). Some 20-30% Bulgargaz's stock may be listed on the BSE. Thus, the market capitalisation of the company will amount to between EUR 4 billion and EUR 6 billion, Denchev said. Bulgargaz also plans to set up its own engineering company, which will be part of the holding structure. The new company may also be a joint venture but Bulgargaz will own 50% of its capital. Bulgargaz also considers getting involved in the gas distribution business. A considerable improvement has been achieved in the projects for transnational pipelines in which Bulgargaz participates. A meeting with the partners in the Nabucco project will be held shortly. The sixth participant in the project will be disclosed after the meeting.
Source: Pari (11.12.2007)

Unpaid natural gas worth millions of BGN is the reason for the warning periods for stop of supply at the end of the year, which Bulgargaz has announced for some of the heat supply companies, said Valentin Terzyiski, spokesperson of the innitiative board of the heat supply managements. Heat Supply-Vratsa SPJSC owes BGN 3.8 mln and a warning shut down date on December 21, 2007. Heat Supply- Burgas SPJSC owes BGN 10 mln and has a warning shut down date on December 27, 2007. Both companies are owned by the energy boss of Bulgaria Hristo Kovachki. . Heat Supply – Pleven SPJSC has a debt of BGn 13 mln and a warning shut down date on December 21, 2007. Sofia heat supply company owes BGN 140 mln has no warning shut down date.
Source: Sega (20.12.2007)

Bulgaria's utility regulator DKEVR and state gas monopoly Bulgargaz failed to reach an agreement on Wednesday regarding the gas price hike planned for January 1. Earlier this month, Bulgargaz demanded a 26% increase to stay profitable and claimed it would need at least an 11% increase to maintain a cash flow that would allow the firm to pay its own suppliers. DKEVR has said it is willing to allow 8% quarterly hikes, starting from January, but Bulgargaz insists it is not enough. The regulator is due to announce its decision on Thursday. It does not need Bulgargaz' consent to set the ceiling for the gas prices, but met with the company's executives hoping that Bulgargaz would agree to its counteroffer. Bulgargaz has said its rationale for the drastic hike request was the big rise of fuel prices on global markets, but DKEVR is unwilling to trigger the inevitable requests for central heating price hikes, since all heating utilities use gas as their primary energy resource.
Source: Darik Radio (20.12.2007)

There will be a 9.87 per cent increase in the price of the natural gas since January. That’s what the Energy regulator decided. The price of the blue fuel will be BGN 365.64 per 1000 cub. m. VAT not included. This is a BGN 33.34 increase instead of the wanted BGN 68.
Source: Standart (21.12.2007)