Economic ministry will decide what stake of BEH to list on the stock exchange Within a week or two, the economy ministry must decide minority stakes in state-owned energy companies that will be sold on the exchange, said in an interview with newspaper "24 Chasa" Deputy Prime Minister Simeon Djankov. He indicated two options - for a package of Bulgarian Energy Holding shares or shares of "Bulgartransgaz" and Electricity System Operator. Before Christmas, Economy Minister Traicho Traikov explained that it is considered the option of placing 15% of the energy holding the stock exchange. Government's intentions are to retain up to 66% of large energy companies. Intentions are the sale of packages to be implemented by the end of 2012. I think the more attractive it will be BEH, because there is diversification. BEH will arise interest of German and Austrian pension funds," Djankov said. The government will intervene aggressively in the pricing of goods and services to protect consumers. Deputy Prime Minister acknowledged that the financial and economic ministry have few rights, but certain products have higher prices without clear reasons. He did not specify whether the prices of electricity, heating and water, which are fixed by the formal independent State Energy and Water Regulatory Commission, will be subject to interference.
Source: 3e-news (05.01.2012)

Court to Decide on Legality of Coal Miners Strike The management of Maritsa Iztok Mines AD will address the Stara Zagora District Court, seeking that the looming strike at the state-owned coal mining company be declared illegal. A one-hour warning rally will be staged on Tuesday, while the actual strike will start on Sunday. In the beginning of 2012, the National Institute for Conciliation and Arbitration (NICA) allowed the miners to go on strike, specifying that it could last until energy supplies were disrupted. After that, the management of Maritsa Iztok Mines AD submitted another claim with the NICA, asking it to reconsider its stance on the matter. NICA has not yet presented its stance on the matter. The Stara Zagora District Court will review the claim submitted by the management of the state-owned company within a seven-day period, meaning that there will be no changes to the scheduled start of the strike activity. The subsequent turn of events will be determined by the court's decision.
Source: Standart (10.01.2012)

Five more electricity retailers will be supplied by the NPP Kozloduy in the first half of 2012, announced Executive Director Alexander Nikolov. After the scandal of the last few days because of reduced amounts of electricity from nuclear power plants for businesses and allegations of large plants for artificial raises of the price for them, the plant's management has decided to provide an additional 80 megawatts. They will go to five dealers which have most strongly expressed dissatisfaction that had failed to qualify at the auction held in December. These are CEZ Trade, EVN Trading, E.oN Bulgaria Trading, Enemona Utilities and Energy Supply. During talks with them Alexander Nikolov has promised to provide electricity but asked them to update their bids submitted earlier for the auction in December. During the auction held in December the minimum price announced by NPP Kozloduy for the proposed electricity was BGN 69 per megawatt.
Source: Standart (12.01.2012)

Bulgaria government cancels Chevron shale gas permit The Bulgarian government, preparing a full ban on shale gas drilling due to environmental concerns, on Tuesday cancelled a exploration permit for the unconventional energy source that it granted to U.S. energy major Chevron in June. The centre-right government decided Chevron can still prospect for oil and gas in northeastern Bulgaria but only by using conventional drilling techniques and not hydraulic fracturing, which involves injecting water mixed with sand and chemicals at high pressure into shale formations. Traikov said Chevron had not been informed and talks with the company were pending. The decision comes a day before the parliament debates a total ban on hydraulic fracturing, or fracking, in the Balkan country and its Black Sea territorial waters - a proposal drafted by the ruling GERB party which is expected to be passed. The government in June granted a 5-year permit to Chevron to prospect for shale gas at the 4,400-square-km Novi Pazar field for which initial estimates, based on similar rock formations, showed potential reserves of between 300 billion and 1 trillion cubic metres of shale gas.
Source: 3e-news (19.01.2012)

Finns Eager to Take 20% of Belene NPP Finnish Fortum Company, which is the only nuclear power plants operator in Finland, declared interest in buying out 20% share in Belene NPP, according to the Russian on-line Vzglyad, quoting its own sources. Fortum is interested in an engineering company, to be contracted for building Bulgaria’s second nuke. In November 2010 Fortum officially bid for investor in Belene NPP and joined the already signed memorandum for the establishment of an engineering company. The paper read that Fortum would take no less than 1% from the future company’s shares and would keep the option to increase their share to 25%. The French Altran would initially take 1% but their plans are to increase their share up to 5%. The majority shareholder would be the National Electrical Company with 51% of the shares.
Source: Standart (20.01.2012)

Miners’ Strike in Bulgaria Is over Bonuses of 300 leva (about 150 euro) per capita have appeased the striking miners in the Marits Iztok mines. As of yesterday the strike is over. The decision was taken at 6 a.m. after 15-hour-long negotiations between the trade unions, mines’ management and deputy minister of economy Delian Dobrev. The morning shift in the mines has started working and the first coal supplies have been brought to grass. The sum total of the bonuses to be dispensed to miners amounts to 2,13 million lela. Meanwhile it has transpired that the losses the mines suffered as of the beginning of the strike January 15 amount to over 8 million leva in missed benefits and unsold stocks, investor.bg reported. During the talks with the striking miners the mines’ management and trade unions’ reps declared the commitment to work towards technological modernization, higher production efficiency and output in Bulgaria’s biggest coal mine complex. All sides in the negotiations said they were content with the agreement they reached.
Source: Standart (23.01.2012)

Extending the life of the fifth and sixth unit of NPP "Kozloduy" is energy project N1 in Bulgaria Extending the life of the fifth and sixth unit of NPP "Kozloduy" is energy project N1 in Bulgaria, because it is the cheapest way to generate power energy. That said the Minister of Economy and Energy Traicho Traikov before btv. The licenses of both units expire in 2017 and 2019. Intentions are the Nuclear Regulatory Agency to extend them by another 10 years, but for that purpose the nuclear plant must submit a program for the measures that would be taken. NPP "Kozloduy" already selected a consultant for extending the life of reactors. For that purpose it should be consulted by the Russian manufacturer "Gidropress." Asked whether Russia will not blackmail Bulgaria for the two 1000 MW units in result of delay in the construction of NPP "Belene" Traikov said: "It would be naive and child behavior." Negotiations for NPP "Belene" with Russian state-owned company Atomstroyexport for inflation-adjusted price and appreciation of the materials continue. On this issue negotiations go for a second year without significant success for both parties. The Russian side insists on to be taken into account the inflation in Russia and for Bulgaria - reported by Eurostat inflation. The cost of the project also remains unclear. Initially, the Russian contractor offered a fixed price of 6.8 billion euro, but Bulgaria wants price about 5 billion euro.
Source: investor.bg (24.01.2012)

Subsidiary of Citigroup wants to trade electricity in Bulgaria Registered in London Citigroup Global Markets, owned by U.S. Citigroup, will step on the Bulgarian electricity market. The company has asked the State Energy and Water Regulatory Commission (SEWRC) to issue 35-year license for electricity trading. The Commission will consider its request tomorrow. The maximum term of the license is sought because the company intends long-term market presence that will improve competition between the participants and will positively affect prices for end-users, who are on the free market, is said in the report of regulatory commission experts. They found that the company has the needed financial resources to perform this activity. It paid 150 thousand BGN warrant. The company has experience in the electricity trade in Central and Eastern Europe and has attracted 250 customers in the last two years. By issuing new license the number of power energy traders in Bulgaria is more than 100, but five companies are most active on the market.
Source: 3e-news (24.01.2012)

Finance Minister Simeon Djankov: Transactions at the domestic and Eurobond markets will cover the state debt The Bulgarian GERB (Citizens for European Development of Bulgaria) government will continue to privatise state-owned shares this year. It is also considering the drafting of a mixed strategy for issuing debt bonds at the domestic market and resorting to the Eurobond market, stated the Finance Minister Simeon Djankov in an interview for Reuters. According to him, the government's objective is to sell a share of 10 - 25% of the state Bulgarian Energy Holding (BEH) by the end of the year through auctioning at a foreign stock exchange, which could bring a profit of several million euros. The Eurobonds, in their turn, can have a seven-year maturity and a value of ˆ500 mln - ˆ1 bn, specified the Deputy Prime Minister. The domestic market became attractive this week after the sale of 7-year government securities yielding 3.9%, indicated the news agency, quoting the Finance Minister. According to him, the pension funds and local banks have excess liquidity and are willing to invest in government securities. The news agency reminded that our country had the lowest debt compared to the GDP ratio of a mere 16%, but it will purchase Eurobonds worth ˆ816 mln, maturing in January next year. It comes down to the replacement of part of the Brady bonds of the Bulgarian external debt for global bonds during the former government of the NMSP (National Movement for Stability and Prosperity). Some experts claim that the transaction was concluded in the period when the dollar exchange rate was too high compared to the euro, as a result of which Bulgaria suffered financial losses. The former Finance Minister Muravey Radev estimated that the incurred losses amounted to about $ 2 bn. Djankov himself pointed out that it came down to some BGN 1 bn. Besides, the transaction failed to have a positive impact on the credit rating of our country. Other options for providing funds refer to the investment of 60% of the state budget reserves from the Silver Fund into Bulgarian or foreign government securities. Up to 20% of the budget reserves should be deposited with private banks, up to 20% should be invested in foreign government securities and up to 10% - in shares of public companies traded on the Stock Exchange. However, a few days ago the Chairman of the Financial Supervision Commission, Stoyan Mavrodiev opposed this idea. Ultimately, the strategy of the GERB government will include a combination of the different options. GERB is expected to improve its budget deficit target of 1.3% of GDP this year, which is important for avoiding the pressure on the Monetary Council (Currency Board), was also explicit Djankov before Reuters. According to him, the forecast for economic growth of 2.8% seems feasible.
Source: Class (30.01.2012)

Businesses demand rules for the development of the free market of electricity The State to present a roadmap on how the quotas of electricity for the free market will be increased in the future, demanded large companies in the country after their meeting with trade unions, suppliers and producers of electricity. There is an artificial shortage of energy on the open market in Bulgaria after the recent auctions for electricity from the Kozloduy Nuclear Power Plant (NPP) in December. “The provided 250 MW were insufficient and this move increased energy prices, which led to closure of production facilities,” said Konstantin Stamenov, Chairman of the Bulgarian Federation of Industrial and Energy Consumers. According to him, if the large companies are not able to cope with the price increase in electricity, then the small and medium-sized businesses could not be expected to do it either. “The Government should be more focused on the Bulgarian industry, rather than on the export of electricity,” said Anton Petrov, Chairman of the Bulgarian Association of the Metallurgical Industry. The electricity distribution companies also demanded an increase in the quotas for the free market. The Kozloduy NPP and the Maritsa-Iztok 2 TPP are currently the only legitimate suppliers of electricity on the open market. Deputy Minister of Economy, Energy and Tourism Delian Dobrev explained that the listing of a 10-15% stake of the Bulgarian Energy Holding on an international stock exchange was being considered.
Source: Class (30.01.2012)

Rosatom to Convince Serbia to Take Part in Belene NPP Project Russian state-run corporation Rosatom has started negotiations over Serbia’s participation in Belene NPP project. Atomstroyexport delegation visited Belgrade and had a meeting with Serbia’s minister of infrastructure and energy Milutin Mrkonjic and the advisor to Serbia’s PM and former minister of energy Petar Skundric. The talks were personally conducted by Rosatom’s deputy general director Kiril Komarov. Last year, Bulgaria’s PM Borissov had a personal talk with Serbia’s President Boris Tadic and the two discussed Serbia’s participation in Belene NPP as an investor in the project with 5% to 10%. After his meeting with Kiril Komarov Minister Mrkonjic had stated that Serbia is interested to participate actively in Belene project, ITAR-TASS informed. Notwithstanding the ban for building nuclear power plants in Serbia till 2015, the country has a number of well-trained specialists, who could assist the construction of Belene nuke, Serbian minister added. Although it was not announced officially Serbia is joining the project experts believe that practically it will participate as an investor even with a small share because of the shortage of electricity it suffers.
Source: Standart (02.02.2012)

Construction of new units at Maritsa-Iztok 2 to begin in a year “By the end of the year, we could have a detailed draft for the construction of two new units at Maritsa-Iztok 2,” the Governor of Stara Zagora, Nedyalko Nedyalkov, said to Klassa today, explaining that the Bulgarian Energy Holding had returned the project for redrafting. Some time ago, Energy Minister Traicho Traikov announced that units 9 and 10 at Maritsa-Iztok 2 could be built for about five years and would cost some BGN 700 mln. According to Nedyalkov, the first sod can be turned as early as next year. The necessary investments are too large to be undertaken by the state-owned thermoelectric power plant. Therefore, an option is being considered to establish a subsidiary to operate the two new units together with the other two generators of the plant. “The company might be listed on the stock exchange and attract funds in that way,” explained Nedyalkov. “Investments in the new power plants in the area of the Maritsa Iztok Mines have not been projected for the time being,” he said. However, AES Galabovo TPP may ask to build new units in the near future. Coal deliveries to Maritsa-Iztok 2 have been suspended because of the floods in the region. “The reason is that the Trayanovo 2 Mine has been flooded and cannot supply coal,” added Nedyalkov. Supplies to Brickel TPP have also been suspended,” reported Darik Radio.
Source: Class (07.02.2012)

Sergey Shmatko: Gas Deliveries for Bulgaria Ensured Russia will deliver the negotiated volumes of natural gas and Bulgaria won't suffer another gas crisis, Russian Minister of Energy Sergey Shmatko promised during the meeting with Bulgarian counterpart Traycho Traykov and vice premier Simeon Djankov. The three of them have discussed issues of mutual interest - extending the life of units V and VI at Kozlodyu nuclear power plant, the construction of Belene nuke and South Stream project. However, no details on the talks on Belene project have been announced till late afternoon yesterday. Minister Shmatko assured Bulgarian ministers that Russia will continue its work on South Stream project notwithstanding its relations with Ukraine. During the talks was discussed the flow of Russian tourists to Bulgaria and the growth of trade between the two countries. Sergey Shmatko has thanked Bulgarian ministers for the abolishment of visas for Russian citizens, who already have a Schengen visa. Meanwhile the Bulgarian part confirmed there is no problem with natural gas deliveries from Russia.
Source: Standart (08.02.2012)

Workers of Maritsa Iztok Mines restarted operations from the three mines. Supply of coal to Maritza East 2 TPP was expected late yesterday. The extraction of coal at the Radnevo mines was halted yesterday morning. The reason was the heavy snowfall in the region and flooding in the mines. Currently the company is working on restoring the operation of the pumping station, which flooded us and restoration of the railroad between Mine Troyanovo 1 and Mine Troyanovo 2, which prevented the transportation of coal. Maritsa Iztok Mines has restored the supplies of coal to Brikel as well.
Source: 3e-news (08.02.2012)

Bulgaria and France to Cooperate on Energy Projects Nuclear engineering, shale gas prospecting and the Southern natural Gas Corridor were some of the issues that Bulgaria’s Economy and Energy Minister Traycho Traykov discussed during his visit to Paris. “Regardless of the moratorium that is in place in France, I expect this debate to be reopened,” France’s Minister of Industry, Energy and the Digital economy Eric Besson said. Besson and Traykov discussed opportunities for participation of French companies in nuclear energy projects in Bulgaria. Minister Traykov also had a talk with Lord James Sassoon, UK’s first Commercial Secretary to the Treasury, during which the two discussed the development of the Southern Gas Corridor, in which BP is a key player.
Source: Standart (13.02.2012)

Four companies want to consult the ESO separation from NEK Four companies have submitted bids and indicated the price and conditions under which they would consult the Bulgarian Energy Holding (BEH) for separation of Electricity System Operator from the National Electricity Company (NEK), Deputy Minister of Economy and Energy Delyan Dobrev said. The deadline for submission of expired on 10 February. Nine companies declared Interest in the proceedings. Dobrev, who is chairman of the board of directors of BEH, declined to give details. Bids evaluation will be delayed by a week and will be ready in March. Consultant will negotiate with creditor banks on restructuring of NEK loans. This calls for because ESO will be separated along with the grid that serves as collateral on loans. NEK negotiates with BNP Paribas for rescheduling by year the allocated 250 million euro for preparation of the project for construction of NPP Belene, Dobrev said. The maturity is in May. After choosing of consultant, it will participate in negotiations. "Project" Belene "and 3 million BGN a day are ticking because of commitments taken under the project," said Minister of Economy and Energy Traicho Traikov on the occasion of allegations of MP "Coalition for Bulgaria" and former Energy Minister Rumen Ovcharov for delaying the decision and stopping its construction.
Source: 3e-news (17.02.2012)

Bulgaria allocates up to BGN 2.1 mln for the gas connection with Greece The Bulgarian Energy Holding (BEH) has earmarked some BGN 2.1 mln for the preparation of a technical project for the construction of the interconnector with Greece, reads the procedure for the selection of a consultant for the project, posted on BEH’s webpage. Companies may submit their offers until 16 March at the ICJB office, the company, which is responsible for the construction of the pipeline between Komotini and Stara Zagora. The deadline for implementation of the order is until a permit for the construction of the interconnector is obtained, explaine BEH. Under the plan, the construction should be completed by the end of 2013 and the Bulgarian section of the pipeline will be some 150 km long. The construction of the pipeline between Komotini and Stara Zagora will cost around ˆ130 mln and the EU has allocated ˆ45 mln to the project under the recovery plan. At least 1.4 billion cu m of gas per year will pass along the conduit and the quantity should subsequently be increased to 5 bn cubic m per year at the most. Bulgaria is expected to receive also 1 billion cu m of gas from Azerbaijan along the pipeline, negotiated by former President Georgi Parvanov. The consortium building the Nabucco gas conduit is considering to halve its capacity, reported Wall Street Journal, citing its own sources. The new idea is for the pipe to be only between Austria and Bulgaria, and it is not clear where the gas would come from. The initial Nabucco project planned the construction of a 3,900-km long pipeline, connecting Central Asia and Austria through Turkey, Bulgaria, Romania and Hungary. The capacity of Nabucco was planned at 31 billion cu m of gas and the project was expected to cost around ˆ8 bn.
Source: Class (21.02.2012)

Bulgaria Starts Export of Power again Bulgaria has started anew the export of power to its neighbouring countries. With an order of Bulgaria's Minister of Economy and Energy, Traycho Traykov as of 01:00 a.m. this night Bulgaria started the export of power. This became possible after the temperatures went up and the Bulgarians decreased the consumption of power. The export of power was suspended for a second time this year on February 10 due to the severe colds which hit Bulgaria and the record-breaking consumption which led to a power shortage of 400 megawatts/hours.
Source: Standart (21.02.2012)

Bulgaria's government plans to privatize this year a minority stake in the state-owned energy holding, which groups the country's top energy assets, the finance minister has confirmed. Talking in parliament at the end of the week, Simeon Djankov said the government aims to sell a stake of between 10 to 25% in state energy company BEH (Bulgarian Energy Holding) via a foreign stock exchange by the end of the year. The deal is expected to raise "several hundred million euros". Bulgaria's government is expected to list its 33% minority stake in E.ON and CEZ power distributors in April and May respectively in a bid to enliven the local stock exchange and boost revenues.
Source: Darik Radio (27.02.2012)

EC Gives Gives Ultimatum to 8 EU Member States The European Commission gave a final ultimatul on Monday to eight EU countries, including Bulgaria, for failing to inform the EC about their measures to implement the EU's third power and gas market opening directives. "So ofar Bulgaria, Cyprus, Spain, Luxembourg, the Netherlands, Romania and Slovakia have not informed the Commission of any transposition measures for the two directives and Estonia has not done so as regards the gas directive," the EC said. The EC has sent reasoned opinions, the second and final written warning in the EU's formal infringement process, to the national governments involved. The governments have two months to respond. If they fail to comply, the EC said it may refer the cases to the EU Court of Justice. All 27 EU countries were required to transpose most of the provisions in the EU's third power and gas market opening directives, adopted in 2009, by March 3, 2011 and to inform the EC of them. The EC said that some EU nations had only notified partial transposition of the directives, and that it is analyzing the measures they had notified. It said it "will decide in the coming months on appropriate further steps." In February 2011 EU leaders committed to complete the EU's internal energy market by 2014. Many EU countries were also late transposing the EU's second power and gas directives into national law, and the EC had to launch formal infringement procedures against nearly all of them.
Source: Standart (28.02.2012)

Bulgaria to Liberalize Energy Market "With the adoption of the amendments to the Energy Act, Bulgaria will correspond to the European directives for liberalization of the gas and energy and power market," stated Bulgaria's Deputy Minister of Economy and Energy Delyan Dobrev in line with EC warning that Bulgaria fails to observes the rules of the EC and may be sanctioned. "The reason for the critics is that the National Electric Company (NEC) has not been separated from the Electricity System Operator (ESO)," Mr Dobrev stated. A contract with the consultant on the separation of the two companies could be signed within a month. The term for the separation is 9 months. In the first 3 months the consultant will make analysis on then best way to separate the companies and how to restructure the assets and arrears to NEC. The second three months are for the real separation of the companies and the last three months are for the clearing the remarks," Mr Dobrev added.
Source: Standart (29.02.2012)

Bulgaria to sign a new contract for gas supplies without intermediaries A new contract for gas supplies will be signed between Bulgargaz and Russian Gazpromexport. This became clear after the yesterday's meeting between Prime Minister Boyko Borissov and Alexey Miller, Chairman of the Board of Directors of Gazprom. “The contract will not include participation of intermediaries in the supply process,” said Minister of Economy, Energy and Tourism Traicho Traikov, who attended the meeting. This confirms the intention of both sides declared a year and a half ago that two of the current gas suppliers - Overgas and Wintershall - should drop out from the process of gas imports to the country. The new contract is expected to be finalised by the end of the year. The period for the future gas supply under the new contract is yet to be specified. The present contracts with the three companies expire at the end of December and the largest volumes of gas so far have been supplied by Overgas. “Gas prices will be tied to the quotations on the spot market, not to the oil market,” Traikov explained. This change will also be introduced in the new contract. The Minister added that in a month or two the reduction of natural gas prices under the new contract with Gazprom would become clear. So far, Bulgaria has managed to negotiate discounts of around 7%. Because of the price increase of natural gas on world markets, however, Bulgargaz has already requested a price increase of nearly 27% as of April 2012. The South Stream gas pipeline project was discussed at the meeting with Prime Minister Borissov as well. It was agreed that the research activities would be completed in the coming months. This will allow for the final investment decision on the construction of the pipeline on Bulgarian territory to be made in November.
Source: Class (01.03.2012)

CEZ, E.On and EVN requested tariffs to be raised by 3.6% to 9.1%. Electricity distribution company in northeastern Bulgaria E.On asked night-time tariffs to be doubled – from BGN 0.002 per KWh to BGN 0.004. The company also requested 3.8% for day-time tariffs, VAT not included. EVN also suggested larger uptake for the night-time tariff. According to the company’s calculations night-time prices should be raised by 4.2%, day-time tariff should be raised by 3.6%. Electricity distribution company in Northwestern Bulgaria CEZ proposed average uptake of 7%. But the uptake that will be approved by the SEWRC regulatory body could be even higher because of the growing prices of green energy.
Source: Standart (01.03.2012)

Bulgaria Asks Russia for Cheaper Natural Gas Bulgarian PM Boyko Borissov, Economy Minister Traycho Traykov and Bulgargaz CEO Dimitar Gogov had talks with Gazprom CEO Alexey Miller, at which they insisted on Russia's gas giant lowering the wholesale prices of the natural gas supplied to Bulgaria. The Bulgarian statesmen asked for a ten-percent discount, which has already been granted to Germany, Slovakia, France and Turkey. The discount, if granted, is to come into force immediately as amendment to the agreements that expire at the end of the year, and this clause will also be provided in the future direct contract between Bulgargaz and Gazprom Export, which is to be signed by December 2012. "In a month or two it will become clear how much the wholesale price of the natural gas supplied to Bulgaria can be lowered," Mr. Traykov said after the meeting. However, during the talks Miller emphasized that Gazprom would expect something in exchange for the lowered price of natural gas. Alexey Miller did not deny that such a possibility exists but this should be tied to certain engagements on behalf of Bulgaria. For example, this could be the acceleration of the construction and making the final investment decision on South Stream gas pipeline which will ensure Gazprom the exclusion of Ukraine from the route of the natural gas from Russia to southern and central Europe and at the same time opens the opportunity for bigger amounts of deliveries for these countries. Another option for the reduction of the price of natural gas for Bulgaria is that this country allows Gazprom make investments in Bulgarian economy and step on the local gas market, energy experts state. Gazprom has received similar "bonuses" from Germany where the price of natural gas for the households is cheaper than the one in Bulgaria.
Source: Standart (01.03.2012)

Bulgargaz to draw BGN 60 million from CCB Bulgargaz will draw a BGN 60 million loan from Corporate Commercial Bank (CCB) in order to pay for part of its Russian gas deliveries, the state-owned company announced, the Trud daily learned. Buglargaz will pay BGN 5.7 million to the bank in interest and fees. By the end of the third quarter of 2011 Bulgargaz used to keep USD 72 million in a deposit at CCB. In end-2011 Bulgargaz’ owner - the Bulgarian Energy Holding (BEH), refused another loan to the company forcing it to seek funding elsewhere. Bulagargaz is facing difficulties to pay for Russian gas due to the debts of its major clients – heating utilities, and the State Agency and Water Regulatory Commission’s (SEWRC) refusal to allow a price hike. The loan will be issued for three years, CCB was chosen as financing bank in end-December, but was approved by the BEH only two weeks ago. The bank was the only candidate.
Source: Trud (06.03.2012)

Bulgaria Pays Foreign debts with BEH Shares and Bonds The payment on Bulgaria's foreign debt in January 2013 in the size of 1.8 billion levs will be realized with resources from privatization and emission of state bonds on the foreign and domestic market, the Standart learnt. The Bulgarian state thinks of selling 20% from the Bulgarian Energy Holding (BEH) in the coming months. This is one of the options which is being discussed in an attempt to provide the necessary funds for the next due payment of the foreign debt. The 20% share of the BEH is calculated to 1 billion levs and it is expected to be listed on a foreign stock exchange. It is not clear yet if a small part of the BEH shares will be released on the domestic stock exchange. In case the Bulgaria state decides to use this option it will need to look for a much smaller foreign financing than the initially talked 500 million euro.
Source: Standart (07.03.2012)

UDF appeals for suspension and audit of the NPP Belene construction project The construction of NPP Belene should be suspended immediately, demanded yesterday UDF (Union of Democratic Forces) leader Martin Dimitrov. He explained that the current negotiations conducted with the Russian side on the plant's construction continue to be held in the dark. In late March, the extended deadline, within which a decision must be issued as to whether the NPP Belene project will be implemented, expires, added Dimitrov. In 2006, the Russian company Atomstroyexport offering a bid of ˆ3.977 bn was selected as the project contractor. In 2011, the Russian company offered the amount of ˆ6.3 bn as the fixed price for the plant's construction. In turn, the financial project adviser - the London-based HSBC Bank - has been making its analyses on the extent of the project's cost-effectiveness in view of the new price. According to the initial data, the NPP could be launched into profitable operation since this makes sense due to the lack of energy-generating facilities in the region. Besides, the UDF demanded that Prime Minister Boyko Borissov present the HSBC analysis to MPs instead of the GERB (Citizens for European Development of Bulgaria) government evading the questions posed by the Bulgarian Parliament. The Prime Minister must publicly disclose the contents of the report, as well as all possible future actions of the Cabinet on this important project, reckoned Dimitrov. According to him, if the government continues to hide information from Bulgarian citizens, it will repeat the disadvantages of the natural gas supply contracts unfavourable for Bulgaria, which were signed by BSP (Bulgarian Socialist Party) ministers with Russia. The right-wing party also demanded that a complete audit be carried out on the hitherto implemented construction works of the NPP Belene project. It would be better if the billions of leva that the Bulgarian state will allocate for the construction of the NPP are invested in the improvement of the energy efficiency of our economy and the homes of Bulgarian citizens, explained Dimitrov.
Source: Class (14.03.2012)

Hot Negotiations for Cheaper Gas in Moscow Hot negotiations for cheaper gas from April 1 have been on since yesterday in Moscow. A special delegation of Bulgargaz led personally by the director of the company Dimitar Gogov has departed for Moscow. The task of the delegation is to meet with Gazprom officials and to negotiate a reduction of the price of natural gas by 10-15% from April 1. The meeting between Dimitar Gogov and Gazprom's Alexey Miller will decide if the gas for Bulgaria will be reduced in price by 10-15%. So far it is not clear what exactly will Bulgaria give to get cheaper prices of natural gas. Miller also does not exclude such an option as he himself admits for such a possibility for Economics magazine several weeks ago.
Source: Standart (20.03.2012)

Erdogan: Forget Your Worries over Natural Gas Supplies I would not permit Bulgaria to have problems with natural gas supplies, Turkish premier recap Erdogan promised to counterpart Boyko Borissov during the joint session of the two governments in Ankara. Reportedly Erdogan personally forwarded the signing of the agreement yesterday, according to sources from the Bulgarian delegation. In the morning it was not clear whether the Turkish gas company possessed the necessary licence to sign the papers. Later the problems were solved through the energetic intervention on the part of the Turkish PM, for which Borissov expressed his special gratitude. After his talk with PM Erdogan, PM Borissov announced that a meeting between the PMs of Bulgaria, Turkey and Greece had been prepared in order to accelerate the hydro-energy projects Tundzha and Maritsa. Before that PM Borissov will gather in the Black Sea city of Varna PM Erdogan and his Qatar's counterpart at a forum to be held in May on the possibilities for Turkish and Qatari investments in Bulgaria. PM Erdogan bore the new nickname of Bulgaria's minister of Culture - Vezhdi Rashidov who presented PM Erdogan with his sculpture. "Te Big Plus in your cabinet is called Vezhdi Rashidov," Turkish PM stated.
Source: Standart (21.03.2012)

Russia Wants Clear Answer on Belene NPP Construction Russia's state-owned energy company Rosatom has urged Bulgaria to quickly make up its mind about the Belene nuclear power plant project. "Bulgaria's government is yet to inform us about its political decision," Rosatom head Sergey Kiriyenko said. Kiriyenko has pointed out that Bulgarian officials come up with statements once every month, often contradicting themselves. "If the decision is to construct it - we will. If the Bulgarian government decides it does not need a nuclear power plant, it won't be a big problem for us," the Rosatom head has stated. Rosatom's subsidiary Atomstroyexport has already assembled the reactor for the first block of the NPP to be built in the Bulgarian Danube town of Belene. Kiriyenko underlined that Rosatom (daughter company of Atomstroyexport has an agreement with the Bulgarian National Electric Company for the construction of Belene NPP) is ready to keep its obligations if Bulgaria keeps hers. Kiriyenko also informed that a possible refusal on behalf of Bulgaria to construct Belene NPP will not be a problem for his corporation which doubled the volume of its contracts last year and has many directions where to focus its efforts. In October 2011, Bulgaria and Russia reached an agreement to extend the negotiations over Belene nuclear project by another six months as of the beginning of October amidst continuing haggling over its price and feasibility. Mr. Kiriyenko also commented the position expressed by Bulgaria's PM Borissov that Bulgaria would give up Belene NPP as Bulgarian-Russian project and is thinking of installing the ready nuclear reactor at the ground of Kozloduy NPP but only waits for the stand of the consultant of the project - HSBC bank. The tern of the next annex to the Bulgarian-Russian agreement for the construction of Belene NPP is to expire next week.
Source: Standart (22.03.2012)

Bulgarian Energy Holding head Yordan Georgiev has been dismissed and replaced by Mihail Andonov, announced the Bulgarian Ministry of Energy and Economy Sunday. Georgiev was serving as executive director of the Bulgarian Energy Holding (BEH), an umbrella entity uniting state energy companies, since July 2010. On his part, Mihail Andonov was up to now the director of Bulgaria's National Electric Company (NEK). "BEH needs a manager who knows in detail the development of the energy sector in Bulgaria. Andonov has worked in energy for 17 years and has an excellent knowledge of its issues," stated the Ministry.
Source: mediapool.bg (26.03.2012)

Bulgarian Energy Holding head Yordan Georgiev has been dismissed and replaced by Mihail Andonov, announced the Bulgarian Ministry of Energy and Economy Sunday. Georgiev was serving as executive director of the Bulgarian Energy Holding (BEH), an umbrella entity uniting state energy companies, since July 2010. On his part, Mihail Andonov was up to now the director of Bulgaria's National Electric Company (NEK). "BEH needs a manager who knows in detail the development of the energy sector in Bulgaria. Andonov has worked in energy for 17 years and has an excellent knowledge of its issues," stated the Ministry.
Source: Standart (26.03.2012)

Bulgargaz wants to drill for natural gas "Bulgargaz will ask for a permission from the Bulgarian Energy Holding (BEH) to participate in the exploration and extraction of natural gas in Bulgaria," announced the company's CEO Dimitar Gogov after a meeting between Valentin Nikolov, Deputy Minister of Economy, Energy and Tourism, and the the largest domestic consumers of natural gas. The event was organised by the Confederation of Independent Trade Unions in Bulgaria (CITUB) because of the already announced price hike of natural gas of 12.73% as of April 1. "We have repeatedly addressed BEH with such a request but we have received no answer. I have reasons to believe that this will change under the new management of the Energy Ministry," added Gogov. "Gazprom is ready to revise the price of natural gas exported to our country because they know it is high for Bulgarian consumers. This, however, should be mutually beneficial," said Gogov. He reminded that among the elements for setting the price of natural gas are the prices of petroleum products which skyrocketed due to the crisis in the Middle East. "Specify a spot market of your choice where you have access and we will change the way of setting the price of natural gas," Gazprom allegedly told Gogov's team. According to Gogov, Bulgaria is now ready to begin supplying gas from other countries besides Russia - the Caspian region or the Middle East, provided there is such an arrangement.
Source: Class (28.03.2012)

Bulgargaz Wants to Extract Natural Gas in the Black Sea “Bulgargaz may start extracting natural gas within two years,” Bulgargaz CEO Dimitar Gogov informed. It is a question of gas deposits in the Bulgarian Black Sea waters and on land, as well as in neighboring to Bulgaria countries. The idea is that Bulgargaz becomes a partner to concessioners of natural gas deposits. "Currently, Bulgargaz has offers from 6-7 companies,” Mr. Gogov stated. Bulgargaz has been invited to take part in the extraction of natural gas by one of the concessioners which exploit the recently found big natural gas deposit in the Romanian Black Sea waters. Through its own extraction of natural gas, Bulgargaz may to a certain extent compensate the expensive natural gas from Russia.
Source: Standart (28.03.2012)

First Gas Station Instead of a Second Nuke Instead of a second nuke, Bulgaria will have a first gas plant. This has been the Cabinet's decision on the hot topic concerning the nuclear project some thirty-three years after its start. "We give up on constructing Belene and after paying 140 million euro for the nuclear unit, it will be installed in Kozloduy," Bulgaria's PM, Boyko Borissov stated. "Mr. Putin and I agreed to avoid turning this project into an apple of discord and prolonging the saga for years," the PM also said. Today Bulgaria's new Minister of Energy, Delian Dobrev will leave for Moscow to try and "find a friendly way out" of the project, without having to go to court. Borissov defined South Stream pipeline as the main priority for Bulgaria. It is possible that the new gas station would be directly supplied by the pipeline.
Source: Standart (29.03.2012)

Bulgarian Delegation to Negotiate Reduction on Gas Price We expect serious deal and great news for Bulgaria about the negotiations on reduction of natural gas price, officials close to the negotiations with Russia commented before The Standart. The positive development of South Stream pipeline project is the trump card of Bulgarian delegation leaving for Moscow today. The delegation led by Economy Minister Delyan Dobrev includes deputy Minister of Economy Valentin Nikolov, the president of Bulgarian Energy Holding Mihail Andonov and Executive Director of Bulgargaz Dimitar Gogov. In Moscow they will meet with Russia's Energy Minister Sergey Shmatko and the Gazprom CEO Alexey Miller as the decision depends mostly on the last. In fact Gazprom would receive confirmation on the realization of South Stream project and for building a gas power plant in Bulgaria that will be direct client of the Russian company. Most probably on these reasons Moscow will agree on decrease of the price, expects forecast. Recently Alexey Miller explained that discount could be given to those countries in which Gazprom has pipelines, gas power plants or direct buyers without mediation of local operators. In Bulgaria now the Russian company will have all the three elements so good news are expected, experts comment.
Source: Standart (29.03.2012)

South Stream in the Making As early as 2012 the South Stream project company will start selecting suppliers for the pipes and the equipment for the construction of the future pipeline, informed sources told the Standart. After Bulgaria's Prime Minister, Boyko Borissov declared that the state would give full support to the construction of South Stream, shareholders in the project can now move to taking the final investment decision which was impossible a week ago. The reason was that Gazprom that holds 50% of South Stream Bulgaria Project Company was not sure the project would have a future. Now, all obstacles have been removed and the work can be seriously pushed. Even this year, the share-holders - Gazprom and the Bulgarian Energy Holding (BEH) will make the final investment decision after which the financial structuring of the project for the Bulgarian part of the gas pipeline will be started. This will give the opportunity that the Russian side immediately starts the construction of the gas pipeline on Russia's territory as well as on the Black Sea route. This will realize the acceleration of the project which Russia's PM Putin recently placed before Gazprom. "In the South Stream project Bulgaria will put all its ambitions and efforts so that in 2015 the first gas supplies be started," PM Borissov is explicit.
Source: Standart (29.03.2012)

Sofia Seeks Short-term Contract with Gazprom As of next year, Bulgaria will be seeking a short-term flexible contract with Gazprom, regarding the supply of Russian natural gas to Bulgaria. "We do not want a long term contract with the Russian company, as we will be seeking alternative suppliers - either through interconnections with the gas carrying systems of our neighbors or, which is far more important, through local extraction of natural gas," Economy and Energy Minister Delyan Dobrev told the national television BNT 1. His optimism is based on some foreign companies? interest in exploring natural gas fields deep into the Black Sea. Mr. Dobrev also said that the Bulgarian government was to review two controversial clauses in its contract with Gazprom, so as to avoid punishment from the European Commission. He added that soon Bulgaria's profit from the transit of Russian natural gas would increase by 12% while the South Stream pipeline, when built, would bring a profit of 150 million euro a year.
Source: Standart (03.04.2012)

Bulgarian Govt Set to Build 7th Reactor of NPP Kozloduy "A procedure for the preparation of the construction of a seventh power unit at NPP Kozloduy could be launched soon," Bulgaria's Deputy Economy Minister Valentin Nikolov said, speaking at a conference organized by the Vienna Economic Forum and the Bulgarian Chamber of Commerce and Industry. In his words, the proposal will be voted at the sitting of the Council of Ministers next week. Once the ministers decide to launch a procedure, a working group on the project could be set up. According to Mr. Nikolov, power units five and six of NPP Kozloduy will be upgraded as scheduled.
Source: Standart (05.04.2012)

PM Boyko Borissov: Bulgaria has natural gas deposits ”I am optimistic that the country has deposits of conventional gas and that, within a year and a half, we can start using it,” stated Prime Minister Boyko Borissov in an interview for BTV yesterday. The Prime Minister refused to say where the gas deposits are and when they had been discovered. I promised the Minister of Economy, Energy and Tourism, Delian Dobrev not to announce details on the gas fields, but they are considerable and will contribute effectively to the energy independence of the country,” added Borissov. Delian Dobrev refused to answer the question of Klassa, whether the availability of deposits of natural gas in the country and in the continental shelf had been confirmed but promised “to give details later." In March, the Press Office of the Council of Ministers announced that three tenders for the selection of contractors for prospecting for oil and natural gas will be cancelled because of the lack of interest on the investors' part and the fourth tender will be suspended because only one offer was submitted and it does not meet the requirements of the Government. The tender procedures were called for the exploration of the land areas: 2 – Silistra, 3 - Tsar Kaloyan, 4 –Kubrat and 5 - Byala. The tenders for land areas 3, 4 and 5 were suspended because no applications were submitted on time. In March 2009, David Nelson, Vice President of the American company Direct Petroleum Exploration Inc, involved in prospecting for natural gas near the village of Deventsi, region of Pleven, announced that the deposit contained at least 6.6 billion cu m of natural gas. The American specialists were surprised by the excellent quality of the gas found in terms of low sulphur content. The natural gas from the field is different from the gas produced in Bulgaria so far. The fuel is highly calorific, with a methane content of about 95%. “This is not merely a deposit but a new geological formation,” said Edward Gandelman, President of the US company Direct Petroleum Exploration Inc, which holds the concession.
Source: Class (10.04.2012)

Mines Maritsa Iztok launched the largest of three projects financed by the fund to support the decommissioning of NPP Kozloduy. The project is worth over EUR 12.5 million, of which EUR 8.8 million are grants. The first delivery of the main contractor Siemens Bulgaria is already a fact - cables for medium voltage worth BGN 7 million, the company announced. It was the beginning of a long-awaited rehabilitation and modernization of equipment in two mines of the company. The delivery included a new current-collection devices and batteries for excavators. The main objective of the project is to improve power quality of heavy mining equipment, reducing electricity costs and modernize the technology used.
Source: Standart (18.04.2012)

Bulgaria to Extend Life of Kozloduy NPP by 20 Years Bulgaria's Kozloduy NPP has started the first phase of the procedure to extend the life of its two 1000 MW reactors by 20 years. The Kozloduy NPP has made a contract with a consortium of Rosenergoatom Russia and French company EDF formally called Consortium OAD "Concern Rosenergoatom" (Russia) - EDF (France) for complex surveying and appraisal of the resources and equipment of the two operational reactors, Units 5 and 6, announced the CEO of the plant Alexander Nikolov at a joint news conference with Bulgarian Prime Minister Boyko Borisov and Finance Minister Simeon Djankov. The results of the survey will be the base for the preparation of a program on the extension of the exploitation life of the two units. The second stage will focus on the realization of the measures on this program. After that Kozloduy NPP submit an application to the Nuclear Regulatory Agency for new licenses of Units 5 and 6 respectively till 2037 and 2039.
Source: Standart (21.04.2012)

Sofia Has Already Paid EUR 400 M for NPP Belene Sofia has already paid 400 million euro to Russia's Atomstroyexport for the construction of NPP Belene. Of it, 130 million euros has been paid under a contract that has not been signed to this day. The payments were made from November 29th 2006 to March 31st 2012. This becomes clear from a report of the State Finance Inspection Agency, published by the Economy Ministry. The conclusion is that such actions are incompatible with the current legislation in Bulgaria, having in mind that no contract for realization of the NPP Belene Project has been signed to this day. This is the gravest violation of the laws which the financial inspectors discovered. But they state there are a series of violations on behalf of the contracting authority at the procedures on the election of a candidate and the realization of the public procurement. In contrast to the law, no public procurement was announced while a dismantling of the already installed fittings on the ground of Belene NPP worth 100 million euro was assigned. It turns out that the electricity produced in Belene NPP would be much more expensive than the one generated by natural gas, for example, shows the analysis of British bank HSBC which was hired as a consultant of the project with the task to state if it would be profitable or not. According to the report, the price of power generated in a gas power station will be US$59 per megawatt. According to the calculations of HSBC, the power produces in a thermo-power plant as well as wind and geothermal energy will be also cheaper than the Belene NPP electricity.
Source: Standart (24.04.2012)

NEK Emits Bonds to Pay for Belene NPP The National Electric Company (NEK) will emit bonds in order to pay a 55-million euro installment on the loan of 250 million euro to a bank consortium led by BNP Paribas. The credit was drawn for payments to the Russian side for the purchase of equipment for the Belene NPP project. “Despite the attempts of Bulgaria’s cabinet to spread the payment on the credit by 1 year, at this stage only 4 of all 6 banks in the consortium agreed to do so,” Bulgaria’s minister of economy and energy Delyan Dobrev commented. The other two banks insist that Bulgaria should pay the due installments, as the sum of 55 million euro has to be paid on the maturity day, which is May 23. The National Electric Company, however, doesn’t have money to pay this installment, Minister Dobrev said flat. For six months now we have been working to cure the current financial situation. It is not easy to find a way out of it and space out the loan, he explained. Two of the banks refused because of the problems with their own portfolios, he commented further. Others agree to space out the payments although under more advantageous payoff conditions. That is why the maturity in May will be paid by BEH. In the long term experts mull over the issuance of NEK bonds that will enable the country to settle the debt, the Minister declared.
Source: Standart (25.04.2012)

The Bulgarian Energy Holding (BEH) will cover EUR 55 million (BGN 107 million) from the syndicated loan that its subsidiary – the National Electricity Company (NEÊ) has towards the consortium of banks led by BNP Paribas, NEÊ’s Executive Director Ivo Lefterov said. By end-October 2011 the BEH had BGN 114 million in deposits, BGN 79 million of which kept at Corporate Commercial Bank.
Source: Capital Dàily (04.05.2012)

NEK to recieve a one-year deadline extension for the loan from BNP Paribas “The National Electricity Company (NEK) will recieve a one-year deadline extension for its loan from BNP Paribas, amounting to ˆ250 mln. Part of the loan will be paid with credit from the Bulgarian Energy Holding (BEH), granted to NEK,” said Delian Dobrev, Minister of Economy, Energy and Tourism, who attended the fourth International Environmental Congress 2012, organized by Overgas yesterday. The Minister noted that the current instalment would be between ˆ50 and 70 mln and that the BEH was likely to pay the amount of ˆ 50 million because NEK had free resources to repay the rest. The payment of the remaining part of the loan will be extended by one year. The maturity of the loan expires on May 23, 2012. The deadline extension was agreed by the bank and the decision on the current contribution was made by the Management Boards of BEH and NEK last week. The Bulgarian authorities are still calculating the amount, which NEK owes for the Russian nuclear reactor for the Belene Nuclear Power Plant (NPP). “The amount is not large and we have no firm deadline in which to pay this liability. After having justified exactly how much we owe to Atomstroyexport, the funds will be paid within a normal term,” Dobrev said. According to Sergey Kiriyenko, Head of Rosatom, our country owed about ˆ1 bn for the reactor at the end of April. Dobrev did not exclude the option of selling the equipment, but noted that the registration of the project company for the construction of the 7th unit at the Kozloduy NPP was underway. Bulgarian end users still do not consume cheaper gas, even after Russia reduced the fuel price by 11% as of April 1. A decision of the State Energy and Water Regulatory Commission is expected. According to the Minister, the reduction will be calculated retroactively after signing the relevant agreements with Gazprom. He did not announce how this would happen and how it would affect consumer prices of natural gas.
Source: Class (08.05.2012)

Transit fees for the Nabucco and South Stream gas to be determined under a special methodology “The prices for natural gas transmission via the Nabucco and South Stream pipelines will be determined under a special methodology that will synchronize the regimes of price setting in all relevant countries,” stipulate amendments to the Energy Act, which were passed at a second reading by the Parliamentary Committee on Economic Policy, Energy and Tourism. The MPs agreed that "the prices for access and transmission of natural gas via the transmission and distribution networks had to be subjected to regulation by the State Energy and Water Regulatory Commission (SEWRC), except in cases where the Commission, at its discretion, approved a methodology for their determining." “This exception applies only to the South Stream and Nabucco projects,” said Chairman of SEWRC Angel Semerdjiev. The committee will continue determining the prices for the gas distribution networks. In early April, the Government specified the Nabucco pipeline, in the section, which will be built in Bulgaria, as a site of national importance. The Nabucco pipeline is intended to transport Caspian gas to Europe. Together with the Turkey-Greece-Italy pipeline and the Trans Adriatic pipeline it is included in the so called Southern Gas Corridor. Some 6 companies partake in the Nabucco Gas Pipeline International Corporation with equal shares of 16.67%: Austrian OMV, Hungarian MOL, Romanian Transgaz, Bulgarian Energy Holding, Turkish Botas and German RWE. At the end of April, it became clear that the northern ground section of the future South Stream gas pipeline would be built first. It includes the infrastructure, passing through Bulgaria, Serbia and Austria.
Source: Class (17.05.2012)

Six Oil and Gas Companies bid for Black Sea Gas Field Six of the leading oil and gas companies in the world have tabled bids for exploring the deep water gas field Khan Asparuh off Bulgaria’s Black Sea coast. The participants in the tender so far are UK’s Melrose, Austria’s OMV, US ExxonMobile, France’s Total, Spain’s Repsol and the Dutch company. “The participants are expected to table their competitive bids by June 17th,” Economy Minister Delyan Dobrev said.
Source: Standart (21.05.2012)

Stara Zagora mayor Zhivko Todorov proposed to move Bulgarian Energy Holding SPJSC and Elektroenergien Sistemen Operator SPJSC in the city. The initiative is supported by the Chamber of Commerce and Industry, Club of the employers, representatives of both unions. We support the idea of decentralization, because besides creating new jobs, it allows regional development, said the mayor of Stara Zagora. The proposal will be formally submitted along with photos, a proposal for premises and financial statement. Besides BEH and Elektroenergien Sistemen Operator, in Stara Zagora can be moved the Agency for Selection and Reproduction in Animal Breeding, National Grain Office, Agricultural Academy. It is yet to be calculated what resources will be needed to repair the buildings to house the state structures.
Source: Darik Radio (28.05.2012)

ITAR-TASS: Nabucco project to be dropped by June The EU-backed Nabucco natural gas pipeline project may be dropped for good by late June, according to the ITAR-TASS News Agency, which has cited London business circles. The fiasco of the project has been reportedly predetermined by drastic changes on the global gas market. ITAR-TASS has reminded that a number of energy giants, including BP, have already pulled out of the project. The Nabucco project aimed at lessening Europe's energy dependence on Russian energy was supposed to achieve a gas transport capacity of 31 billion cubic metres (bcm) a year. On May 16, the Nabucco Consortium presented a revised, smaller version of the gas pipeline project called Nabucco West to the consortium developing the Shah Deniz II gas field in Azerbaijan. On Sunday, Dimitar Abadzhiev, Bulgaria's representative in Nabucco Gas Pipeline International GmbH, sought to dispel claims that the EU-backed energy diversification project is unfeasible.
Source: 3e-news (29.05.2012)

Sofia Claims Extra EUR 255 M for Shut down Nuclear Reactors According to NPP Kozloduy CEO Valentin Nikolov, Bulgaria could claim as much as 255 million euro for the decommissioned four reactors of NPP Kozloduy for the period 2014-2020, provided that the sum is accepted by the Kozloduy Fund donors.
Source: Standart (31.05.2012)

Moscow Claims EUR 1,1 B as Compensation for Belene Project Rosatom, Russian state nuclear energy corporation, will demand from Bulgaria 1,165 billion euro in compensation for dumping Belene nuke project. The sum covers the equipment ordered by Bulgaria’s National Electric Company, groundwork at the construction site carried out by Russian contractor Atomstroyexport, etc., a source close to the negotiators told The Standart. The sum is not finalized and may vary within narrow margins. The manufactured equipment includes two reactors, their cost accounts for the largest item in the balance sheet. The first reactor is almost ready and could be delivered to Bulgaria by end-year. As for the second one, the claims of the Bulgarian and the Russian negotiators differ – Sofia claims that it is 25 percent ready, while Russians maintain that the reactor is 80 percent ready. Bulgaria plans to sell the second reactor to a third party.
Source: Standart (01.06.2012)

Private Company to Buy Belene NPP Project A private company will most probably buy the Belene NPP by the end of the year, the chairman of the Bulgarian Atomic Forum Bogomil Manchev stated before the BTA. The consortium will include one key company and several more which can change in time. A serious interest in the construction of the company has been expressed. In case the Bulgarian state and the private investor come to terms for the construction of the project, the turning of Belene NPP into a private one should be agreed upon and with the Russian side which is a supplier of the equipment," Mr Manchev added.
Source: Standart (05.06.2012)

Cheap Gas Agreement Delayed due to South Stream Project "The signing of the agreement for reduction of the price of natural gas by 11,1% as of April 1 is being delayed due to new requirements from the Russian side towards the financial model of South Stream project," Bulgaria's minister of economy and energy Delyan Dobrev stated. "The new requirement cannot be accepted easily as Bulgaria will have to defend its national interests," Mr. Dobrev added. Bulgaria has to make the final investment decision on South Stream gas pipeline by November 15.
Source: Standart (05.06.2012)

Russians to Build Unit 7 in Kozloduy NPP Rosatom, the Russian state-owned corporation, and its subsidiary Atomstroyexport will build the nuclear power generating facilities of the new Unit 7 of Bulgaria’s Kozloduy nuke on the Danube. Sofia and Moscow have confirmed the news almost synchronously. “The fact that the reactor originally made for Unit 1 of the suspended Belene NPP project and the Russian part has nearly completed it automatically means that the nuclear part of Unit 7 in Kozloduy will be manufactured by our partners from Atomstroyexport. Bulgaria’s minister of energy Delyan Dobrev broke the news. Minister Dobrev added that another contractor was searched for the non-nuclear part of Unit 7 of Kozloduy NPP in order to diversify the project. "The negotiated reduction of natural gas price for Bulgaria by 11,1% as of April 1 will come in force when Bulgaria takes a written commitment for a final investment decision for the construction of South Stream project by Novemner 15,” minister Dobrev also stated.
Source: Standart (06.06.2012)

Natural Gas Europe: Bulgaria has not secured money for the South Stream project Bulgaria has not found an investor to finance its participation in the South Stream gas pipeline project, posted the online edition Natural Gas Europe, quoted by Focus agency. “In order to avoid a new scandal like the one regarding the shelved Belene NPP project, we must find the money first and only afterwards - sign a contract,” said Bulgarian Minister of Economy, Energy and Tourism, Delian Dobrev, quoted by the online edition. The Bulgarian Government should sign an agreement for building the pipeline by November 15, 2012. According to Minister Dobrev, the South Stream project will cost Bulgaria BGN 300 mln and up to 70% of the construction costs will be guaranteed by loans. “The money for Bulgaria’s participation in the South Stream project should come from loans,” Dobrev specified on Saturday for Darik Radio. Once again, he explained that the reduction in the price of Russian natural gas by 11% as of April 1 will come into force after Bulgaria signs the final agreement for the gas conduit, which must happen by November 15. “Politically, it is very tempting to sign an agreement on this 11% reduction. Had we signed that agreement back in April, we would have probably become national heroes – the only ones in Bulgaria’s history who have achieved a decrease in the price of gas. The latter has always increased with one exception - in 2009 - when it was reduced by about 2%,” commented Minister Dobrev.
Source: Class (18.06.2012)

Bulgarian Energy Holding to select a new Head of the National Electricity Company Bulgarian Energy Holding (BEH) announced the start of the procedure for selection of a new Executive Director of one of its subsidiaries - the National Electricity Company (NEK). The applicants must be Bulgarian citizens or citizens of an EU member state. They should have higher education - technical, economic or legal one. They also should have experience in senior management positions in commercial companies or government structures from the energy sector. The new Head of NEK should not perform leading or control functions in a political party. The applicants cannot be related to a member of the management or supervisory body of BEH or its subsidiaries, and cannot be agents or managers of an offshore company. Previous experience in investment projects in the energy sector and a good understanding of the mechanisms of operation of the EU institutions will be considered an advantage. On March 28, 2012, Ivo Lefterov, Finance Director of NEK, became acting manger of the company. He assumed the post from Mihail Andonov, who became Executive Director of the Bulgarian Energy Holding.
Source: Class (27.06.2012)

Scottish and French Companies Compete for Black Sea Gas Field Two companies – France’s Total and Scotland’s Melrose Resources - have tabled bids for probing and exploitation of the natural gas fields in the Bulgarian territorial waters of the Black Sea. The news was broken by Bulgaria's economy minister Delyan Dobrev. The third bidder, the U.S. Exxon Mobil, pulled out of the tender in the last minute. Minister Dobrev speculated that they might want to focus on the exploitation and probing of their gas fields in neighboring Romania.
Source: Standart (06.07.2012)

Dozens of violations in the state-owned enterprise Mines Maritsa Iztok SPJSC were revealed by a comprehensive review of the public procurement procedures undertaken by the Agency for State Financial Inspection (ASFI) for the period 2009 – 2011. Inspectors have imposed a total of 100 fines on current and former executives of the mining company, and another 17 violations were not administered, because the three-year limitation period had expired. Some of the violations are serious indeed. The Agency has determined that management has concluded 11 contracts for which a tender had not been made, although all prerequisites for this were available. Their total value is BGN 1.092 million. This is the first comprehensive examination under the Public Procurement Act of ASFI in Mines Maritsa Iztok, but the violations are by no means the first in recent years. The management of the company declined to comment the report on the grounds that it is not yet public.
Source: Capital (10.07.2012)

The state of Bulgargaz deteriorate The state of Bulgargaz deteriorate - the gas supplier wants Its capital reduced by a further BGN 72.7 million to BGN 257.6 million, the company announced. The reason - the company does not have enough money to cover its losses. The owner of the company Bulgarian Energy Holding explained that they have yet to consider the request of the gas company and so far have only adopted the report and audits for 2011. BEH has refused to discharge the management of Bulgargaz for the financial decisions taken in 2011. The gas company was in serious condition since last year. The reason, according to the state company, is the retention of prices of natural gas from the State Energy and Water Regulatory Commission. This forced it to sell natural gas at a lower price than it had purchased it from Russia.
Source: Trud (18.07.2012)

Turkish Intermediaries to Supply Azeri Natural Gas to Bulgaria Private companies from turkey will probably become intermediaries in the supplies of natural gas from Azerbaijan to Bulgaria. This became clear from a statement of Turkish Energy and Natural Resources Minister, Taner Yildiz, as quoted by local and Azeri news agencies. Mr. Yildiz met with his Bulgarian counterpart Delyan Dobrev in Ankara Wednesday and discussed the ongoing construction of an interconnection between the natural gas networks of Bulgaria and Turkey. The interconnection will supply Azeri natural gas to Bulgaria. As the Standart wrote earlier, Sofia and Baku agreed supplies of at least one billion cubic meters of natural gas per year. Earlier it was considered that the gas interconnection will be constructed and exploited by Bulgartransgaz and Turkey's BOTAS Petroleum Pipeline Corporation. However, at a press conference following his talk with Minister Dobrev Yilfiz said that any private Turkish company may become an intermediary in the supplies of Azeri natural gas to Bulgaria, provided it has obtained the necessary license for such activities from the state regulator in Ankara. With this move Taner Yildiz has turned the tables, as now Turkey, who until not before long was regarded as a mere transit country on the natural gas route from Azerbaijan to Bulgaria, has now secured ten billion cubic meters of natural gas per year from Azerbaijan's Shah Deniz-2 gas field. Thus, Ankara is now planning to become an authorized reseller of Azeri natural gas for Bulgaria.
Source: Standart (03.08.2012)

More players enter the transit of gas Monopoly of Russian suppliers of gas through transit pipes in Bulgaria will fall. This is provided in a project for a contract between the transmission network operator Bulgartransgaz and potential buyers of spare capacities. The type document has been put for public consultation and suggestions are accepted until 25 August. Bulgartransgaz allocate capacity for transit of gas through the "first said - the first received" principle. Preference will be given to the state-owned Bulgargaz. Currently the majority of capacity is held by the Russian-Bulgarian company Overgas (50% owned by Gazprom). Many industrial companies complained in Brussels and last year the European Commission started an infringement procedure against Bulgaria. Capacities will be given for month, quarter, one year or more. The condition is to have equal amounts of free entry and exit of the network. Only they can be transferred. If the document is approved before the end of the year, traders besides Overgas in practice can only benefit 9 million cubic meters of spare capacity. The reason is the mismatch between the physical volumes of the inlet pipe from Romania and the three exit pipes to Turkey, Greece and Macedonia, and in the reserved amounts of the subsidiary company Gazprom for this year.
Source: Trud (14.08.2012)

Bulgarian Economy Minister Delyan Dobrev has reshuffled the management of two major state energy corporations – the National Electric Company NEK Jsc and the Maritsa East Mines Jsc, the press service of the Economy Ministry announced. Dobrev has thus accepted a resignation submitted by Ivo Lefterov, the head of NEK. Lefterov will be replaced by Krum Anastasov. The Bulgarian Minister of Economy, Energy, and Tourism has at the same time dismissed Evgeni Stoykov, the CEO of the Maritsa East Mines Jsc (Mini Maritsa Iztok EAD), and has appointed Teodor Drebov in his position. "Evgeni Stoykov's dismissal is necessitated by the need to improve coordination and the speed of work in the company," the Economy Ministry explained. The management reshuffle has been approved by the boards of NEK and the Maritsa East Mines as well as by the management of their parent company, the Bulgarian Energy Holding (BEH). The new CEO of NEK, Krum Anastasov, is a graduate of the Sofia Technical University; he has specialized economics and management at KPMG Advisor and Eagle's Flight Creative Training Exellence Inc.. Anastasov has 21 years of experience in the energy sector, including 10 years at senior management positions. He is a former employee of Czech-owned utility in Western Bulgaria, CEZ Razpredelenie Bulgaria AD. Until now, he has been the head of the regulated market department at NEK. The new CEO of the Maritsa East Mines, Teodor Drebov, is a mining engineer who graduated from the Sofia University of Mining and Geology back in 1986. He has been the director of other Bulgarian state-owned mining companies – "Antratsit" and "Bobov Dol", and has worked at the former State Commission for Energy, and State Agency for Energy and Energy Resources. Until now, he has been a employee of the Natural Resources and Concessions Directorate at the Bulgarian Economy Ministry. Drebov has 26 years of experience in his field.
Source: Capital (21.08.2012)

NPP Kozloduy sell a beach complex NPP Kozloduy announced an auction with a secret bidding for a sale of a beach complex and a store. The company wants to release itself from an entertainment complex, situated at the Danube River’s coast, to the name of Paradise. The initial auction price of the beach complex is to the amount of BGN 129 150 with VAT excluded. The offer includes an administrative building, a restaurant, a summer bar and a workshop for boats, as well as a land with an area of 4,180 square meters. A watchtower, portals, parking, and an artificial beach have been built on it. The deposit for participation in the tender is BGN 12,900, while the starting price is BGN 14,300 VAT excluded.
Source: 24 chasa (26.08.2012)

Westinghouse to Carry out Feasibility Studies for Kozloduy Unit 7 Westinghouse Electric Company has received a contract to perform a feasibility study on a potential seventh unit at Bulgaria’s Kozloduy Nuclear Power Plant. The required study will encompass a review of two potential designs: a reactor of WWER design utilizing equipment already purchased by the customer together with Westinghouse instrumentation and control (I&C) systems, fuel and a Toshiba Corporation turbine generator, and the construction and operation of a pressurized water reactor (PWR) 1000-1200 MW design. The scope of the feasibility study includes an evaluation of the site, radioactive waste and spent fuel management, reuse of existing infrastructures and facilities, licensing, local economic aspects, and the profitability of the two reactor designs. The Kozloduy Nuclear Power Plant has an excellent operational and safety record, which provides a strong basis to host an additional reactor at the site, Westinghouse has pointed out in a press release. Five companies had submitted documents to develop a project for the new Unit 7 of Bulgaria's Kozloduy NPP. The companies were Westinghouse, French Areva, Areva in a consortium with Mistubishi, Bulgarian company Risk Engineering and Australian Worley Parsons. The initial assesment must be ready some 7-9 months after concluding the contract; by the end of 2013 the company must choose the site for the new Unit 7. At present, only the 1000 MW units 5 and 6 are operational at the Kozloduy NPP, after Bulgaria agreed to shut down the 440 MW units 1-4 in 2002 and 2006 as part of its EU accession talks under pressure from Brussels.
Source: Standart (28.08.2012)

Bulgaria's state energy holding company BEH plans to tap international markets with a bond issue to raise up to $300 million at the beginning of next year to refinance existing debt, its Chief Executive Mikhail Andonov said on Monday. Speaking on the sidelines of an energy event, Andonov said BEH needed to find a way to pay 195 million euros ($244 million) its NEK unit owes to a syndicate of banks led by BNP Paribas by next May. Andonov said BEH, whose assets are valued at over 12 billion levs ($7.7 billion), plans to get a credit rating this autumn which he expected to match Bulgaria's sovereign rating. He said the group aimed to issue between $250 million and $300 million worth of dollar-denominated bonds. "We are thinking U.S. dollars, as the dollar markets are quite deep and resourceful," he said. "It will be good if we can get a coupon at about 3.5 to 4.5 percent." He declined to elaborate on the maturity of the issue. In July, Bulgaria tapped global markets for the first time in 10 years, selling 950 million euros worth of new five-year Eurobonds with a coupon of 4.25 percent. Bulgaria is the European Union's poorest member state, but one of its least indebted, and is rated at investment BBB grade by Standard and Poor's, level with Lithuania and Russia, Baa2 by Moody's and BBB- by Fitch.
Source: Capital (29.08.2012)

BEH’s Head: If we find large gas deposits in the Black Sea, Bulgaria will be independent of supplies “If we find large deposits of gas in the Khan Asparuh field in the Black Sea, all major players on the gas market will have to take into consideration the supplies on our territory,” Mihail Andonov, Executive Director of the Bulgarian Energy Holding (BEH) said on BNR on Sunday. If the existence of industrial quantities of gas is proven in the Black Sea shelf, in some four or five years, Bulgaria will become independent of gas supply over the next 25-30 years. “Explorations will begin with the signing of the contract, so we hope for results within three or four years,” added Andonov. In October 2011, a decision was made to open a procedure for issuing permits for prospecting and exploration for oil and gas in the 1-21 Khan Asparuh field. The oil giant Total won the tender. The contract is for five years within which the French company will invest more than BGN 1 bn in the exploration. Asked about the prices of fuels, Andonov said these are rising worldwide. “Everything is interrelated and Bulgaria cannot remain an island and not be influenced by the prices on international markets. The Government is taking adequate steps for getting out of this situation. As of October 1, the price of gas might be reduced. What could be better than that,” Andonov asked rhetorically referring to the protocols signed with Gazprom, stipulating an 11% decrease of natural gas prices, at that, with a retroactive effect as of April 1, 2012.
Source: Class (03.09.2012)

One Billion Cubic Meters of Natural Gas under Bulgaria's Svilengrad The Bulgarian part of the so-called oil and gas basin spreading over the territory of Greece, Turkey and Bulgaria, may provide as much as one billion cubic meters of natural gas per year and thus meet a third of the country's demand for the fuel, preliminary explorations show, At present, Bulgaria consumes between three and 3.2 billion cubic meters of natural gas per year, of which only ten percent is home-extracted. If the Thrace bloc proves reliable, it can provide a third of the country's natural gas at prices 40% lower than these of the natural gas imported from Russia. The explorations in the region of Svilengrad, whose start was announced by economy minister Delyan Dobrev on Sunday, will be carried out with the so-called vibration method, which is absolutely harmless for the people and the environment. The activities start on September 15th and will last for about two and a half months.
Source: Standart (05.09.2012)

Bulgarian PM: Russia launches an all-out attack about Belene The one-billion-euro claim of Russia's Atomstroyexport against Bulgaria's National Electric Company (NEC) is a blatant provocation, Bulgarian PM Boyko Borissov said during yesterday's sitting of the Cabinet. Borissov was surprised by the unexpected move of the Russian constructor of NPP Belene to inflate its claim towards Bulgaria's electric utility NEC, regarding the compensations for the cancelled project. "This is below the belt," he shouted on hearing Economy Minister Delyan Dobrev's report, and immediately urged him to contact Rosatom's CEO Sergey Kirienko. During the sitting it transpired that Russia's President Putin will make one-day visit to Bulgaria on November 9. Apart from that Putin and Borissov will definitely discuss the future of South Stream project.
Source: Standart (13.09.2012)

The New Reactor Fits Kozloduy NPP "The producer reactor for Belene NPP could be installed as Unit 7 of Kozloduy NPP," the deputy director of Russian state-run company Rosatom, Kiril Komarov stated, cited by Interfax agency. "Atomstroyexport's 1-billion-euro claim, daughter company of Rosatom, against the Bulgarian National Electric Company (NEC) does not mean that the reactor once meant for Belene NPP cannot be installed as Unit 7 of Kozloduy NPP through a suitable project," Mr Komarov commented. Mr Komarov pointed out that two reactors were ordered for Belene NPP and the second one is nearly ready while the Kozloduy NPP could take only one reactor with the construction of a new unit. According to Mr Komarov, Bulgaria has not demanded the termination of the contract for the production of the equipment for Belene NPP yet and part of the equipment is still being produced. Mr Komarov stated that due to this reason the claim of Atomstroyexport worth 1 billion euro is justified as it is based on the work accomplished, inclusive of the production of the equipment and the claim is not kind of a sanctions or fines.
Source: Standart (14.09.2012)

Bulgarian Energy Holding (BEH) announced a competition for rating agency. The mega company involves the largest state-owned energy companies - NPP Kozloduy, NEK, TPP Maritza East 2, Mines Maritsa Iztok, Bulgargaz, Bulgartransgaz and Bulgartel. The money from the issue will be used to help the two troubled companies - NEK and Bulgargaz. The announced competition for rating agency is divided into two stages - credit rating and its transformation into issue. The first phase should be completed at most for two months, and the second – for a month and a half. The competition can be entered only by agencies, which over the past three years have performed at least 3 successful agreements on rating energy companies with a turnover of at least EUR 1 billion. Furthermore, their previous guarantors must have successfully issued bonds for a minimum of EUR 250 million.
Source: Trud (17.09.2012)

Moscow wants NEK as compensation for Belene NPP The fret over Belene NPP continued as Moscow announced that Russia has filed a lawsuit against Bulgaria’s National Electric Company (NEK) for the suspended nuclear power plant project, which could bring NEK to bankruptcy. If NEK loses the lawsuit and fails to repay its debt, the Russian state-run corporation Rosatom is ready to take steps for acquiring NEK’s assets as compensation, said an unnamed Russian nuclear sector source, cited by RIA Novosti. “Although Bulgaria’s withdrawal from the project was sanctioned by the Government and the National Assembly, this is a matter of relations between two commercial companies. It must be seen what has been ordered and paid and if Bulgaria has to pay more, this cannot be avoided. Moreover, I guess that in addition to Atomstroyexport, equipment has been ordered and paid to French and German companies,” Yordan Kostadinov, a former MP and CEO of Kozloduy NPP commented for Klassa.bg. On September 11, the Russian company Atomstroyexport (a subsidiary of Rosatom) announced that it will increase its default claim for the suspended Belene NPP project to ˆ1 bn. The Russian claim has been submitted for consideration by the International Court of Arbitration at the International Chamber of Commerce in Paris. “The amount of the claim is so high and Russia’s arguments are so serious that the legal dispute could bring NEK to bankruptcy in the end. This is not the best option for Bulgaria, but, unfortunately, it is possible,” RIA Novosti quoted the unnamed Russian source.
Source: Class (19.09.2012)

Energy Minister Inquires about Belene NPP Investor Bulgaria’s Minister of Economy and Energy Delyan Dobrev sent letters of inquiry to the US Energy Department. He requires more information about the US company Global Power Consortium Ltd., a candidate investor in the Belene NPP project. The Bulgarian government has already declared that it will start negotiations with the investor only after the company confirms that its intentions are serious. Global Power, in its turn, has declared before the National Electrical Company and the MPs of the parliamentary economic committee that it has investment interests in Belene project. So far it has become known that the consortium is based in New York and is represented by Samuel Reddy. Its major shareholder is Quantum Group Inc., USA. What are the Western European and American companies behind the Global Power Consortium will become clear after NEC and Global Power Ltd. sign an agreement, Bogomil Manchev, CEO of Risk Engineering and consultant of the US investors said.
Source: Standart (29.09.2012)

Bulgartransgaz to invest ˆ650 mln in gas transmission infrastructure Bulgartransgaz plans to invest nearly ˆ650 mln in the development of gas transmission infrastructure over the next 10 years, 3E-news.com posted, citing CEO Kiril Temelkov who presented to journalists the ten-year investment plan of the company at the Golden Sands Black Sea resort. “The large-scale investment is aimed at ensuring reliable and secure infrastructure for gas flows into and through Bulgaria and diversification of the sources and routes of gas supply,” specified Temelkov. He added that the investment will be ensured by own funds of Bulgartransgaz, grants schemes and attracted external financing on a project basis. The interconnector links with Greece, Turkey, Serbia and Romania with a total capacity of 8-15 billion cu m and a total length of 300 km will absorb ˆ117 mln. Some 272 km of new routes will be built that will make the access to gas available to regions. Their total capacity will be approximately 2.5 billion cu m of gas and these will cost ˆ49 mln. The expansion of the transmission network will cost ˆ250 mln and, within five years, the capacity of the gas depository in Chiren will be doubled from the current 550 million cu m to 1 billion cu m of storage and up to 10 million cu m for injection and extraction. According to Temelkov, this will cost the company some ˆ200 mln. The capacity of Chiren is not being completely used at present and cannot be used without an extension of the depository. Gas from Chiren is now offered on the Bulgarian market but, after the expansion, it will be marketed in the entire region.
Source: Class (01.10.2012)

Ukraine to Buy Natural Gas from Bulgaria Ukraine has asked to buy natural gas from Bulgaria, Bulgartransgaz CEO Kiril Temelkov said. Kyiv’s interest has been triggered by Sofia’s plans to expand its natural gas transfer system by building interconnections with its neighbors – Turkey, Greece and Romania, as well as by the construction of the Nabucco West pipeline. The realization of these plans may turn Bulgaria into a major natural gas hub in Southeastern Europe. By 2017, Sofia expects to start receiving natural gas from Azerbaijan, either through the interconnection with Ankara, or the Nabucco West pipeline. The first quantities of natural gas from the South Stream pipeline are expected to enter Bulgaria at the end of 2015. In 2013, Bulgaria will be extracting about one-third of the natural gas it needs from own fields. Currently, these fields meet 15% of the country’s demand for the fuel.
Source: Standart (01.10.2012)

Bulgaria Won’t Pay for the South Stream Pipe Bulgaria will not invest money in the construction of the South Stream gas pipeline. The draft financing plan for the pipelines route through the Bulgarian territory envisages that the project will be paid by the Russians but Bulgaria will not collect transit fees for 15 years. This is the final agreement concerning the construction of the South Stream pipe that will be inked in November, sources close to the negotiating parties reported to mediapool.bg. Saturday, Minister of Economy and Energy Delyan Dobrev said that the financial participation of Bulgaria in the project was symbolic and pointed out that up to now the Bulgarian Energy Holding (BEH) invested a 6-million euro stake in the capital amounting to 12 million euro of the South Stream project company set up by BEH and Gasprom that will build and operate the pipeline on the Bulgarian territory. According to the preliminary agreement, the pipeline that will supply Russian gas through the Black Sea via Bulgaria to Austria, Bulgaria had to pay 30 percent of the project’s cost, which amounts to 900 million leva, but the sum was unaffordable to BEH.
Source: Standart (01.10.2012)

An Operator and a bank Want to Finance NPP Belene Among the participants in the Global Power Consortium, which has shown interest in financing the construction of Bulgaria’s NPP Belene, there are an investment bank, a venture operator a licensing and an engineering company, Risk Engineering CEO Bogomil Manchev said. In his words, the consortium consists of nine companies, eight from the USA and one registered in Western Europe. He said the consortium can’t have been laundering Russian money, because had they been doing so, the American financial intelligence would have known about that. According to Mr. Manchev, the investors are billion-dollar-worth companies with wide experience in nuclear engineering. Their names will be made public after the official start of the negotiations, the businessman said. According to Manchev, the price of the Belene nuke project will total 8 billion euro, this is the overall price.
Source: Standart (01.10.2012)

Bulgaria and Serbia to Sign Gas Connection Agreement "Bulgaria and Serbia will sign an agreement for the construction of inter-system natural gas connection by the end of November. The construction of the gas pipeline will be launched next year," Serbia's PM Ivica Dacic informed. The construction of the gas pipeline should be finalized in 2015 when the first gas supplies will be started. The planned capacity of the pipeline be between 1.8 and 5 billion cubic meters a year. The length of the pipeline, which will connect the gas grids of the two countries from Nis to Sofia will be about 150 km, 55 km of which are on the Bulgarian territory. For the construction of the pipeline Bulgaria will receive 10 million euro funding under the Regional Development Operational Program of the EU.
Source: Standart (04.10.2012)

M. Andonov: We propose a six-year contract with Gazprom “Important negotiations will be held in Moscow next week – for natural gas deliveries from Gazprom and on the final parametres of the South Stream project,” Mihail Andonov, head of the Bulgarian Energy Holding (BEH), told Darik radio on Saturday. “Our proposal is for a six-year agreement, it was approved by the Russian side, and we have to negotiate the specific parametres,” he explained. The negotiations have almost been completed. “Our proposal regarding the price is for a lower price than the adopted 11.1% reduction of gas prices,” added Andonov. According to him, within the same period – by November 15 – the two sides must agree on the financial model, the procedures to be implemented, the feasibility studies and the drafting of an environmental impact assessment (EIA) of the South Stream gas pipeline and Bulgaria will have to announce its investment decision. Andonov was explicit that our country will not concede any ownership on its transit gas pipelines. Currently, BEH is in a stable financial state, with a positive result exceeding BGN 500 mln for the first eight months of 2012, but this does not hold true of the National Electric Company (NEK) and Bulgargaz which are in dire financial straits. NEK’s investments in the Tsankov Kamak dam and the Belene NPP amount to some BGN 1.5 bn. Moreover, the company owes about BGN 450 mln in arrears for electricity supply. The rating agency Fitch will evaluate BEH’s credit rating. The contract will be signed this week and the evaluation can be ready within 6 - 8 weeks. Then, the holding company may issue a bond loan in order to enable NEK to pay to its suppliers.
Source: Class (08.10.2012)

Russian Company Bids in Kozloduy NPP Tender Russian company Rosatom Overseas has submitted documents for participation in the tender for elaboration of the Environmental Risk Assessment (ERA) in connection with the construction of Unit 7 of Kozloduy NPP, a source well informed about the Bulgarian nuclear industry informed the RIA Novosti. Not long ago, the project company Kozloduy NPP - New Capacities invited a tender for the elaboration of the ERA for the construction of Unit 7 in Kozloduy NPP. The information was confirmed by the Executive Vice President of Rosatom Overseas Leos Tomicek. “It is true that we have recently submitted a bid for the invited tender on the environmental risk assessment act for the new unit of the Kozloduy nuclear power plant. Bulgaria is our traditional partner in nuclear power engineering that is why our interest to this kind of projects is understandable,” Tomicek said. After the Belene NPP project was frozen the Bulgarian government has an idea to install the reactor, which Atomstroyexport and its subcontractors originally built for the Belene nuke, at Unit 7 of the Kozloduy plant. The new facility should be a cross between a Russian reactor and a turbine generator designed using Western technology. Experts recon that Unit 7 of the Kozloduy nuke may be set in operation by 2024.
Source: Standart (11.10.2012)

Bulgargaz and Gazprom will sign a contract for the supply of gas to 15 November The new contract for the supplies of Russian natural gas for Bulgaria between Bulgargaz and Gazprom is due to be signed by November 15, 2012, Bulgarian deputy economy minister Evgeniya Haritonova has announced. She spoke at a meeting of the Economic Committee at the Bulgarian Parliament on Wednesday, as cited by Sofia News Agency. Haritonova has not revealed any details about the terms of Bulgaria's new contract with Gazprom. As Bulgaria's is over 95% dependent for its natural gas on Russian supplies, the government's deals with Gazprom are traditionally one of the country's hottest political issues, with the usually high prices paid by Bulgaria's state company Bulgargaz being blamed on the intermediaries between Bulgargaz and Gazprom. Haritonova has assured the public that the government is making progress on the natural gas interconnectors with Romania, Turkey, and Serbia, which have been touted by the Borisov Cabinet as the means to diversify Bulgaria's natural gas supplies presenting coming only from Russia.
Source: 3e-news (18.10.2012)

A flood of dismissals is about to hit Bulgaria's national electricity transmission company after a discrediting letter surfaced, allegedly reviving the nuclear power plant project at Belene. Marin Angelov, head of Trafelectroinvest company with NEK, was the first to get kicked out on Thursday. His dismissal came shortly after the right-wing opposition alleged the government has not halted the construction of Belene nuclear station and the project is in full steam. They based their allegations on a letter, which they obtained, by the national electricity transmission company NEK to the mayor of the Danube town of Svishtov Stanislav Blagoev regarding the construction of high voltage lines needed "to ensure the connection of future facilities that will be built on the site of NPP Belene." The document is dated October 8, 2012. "The lines are part of Belene infrastructure and will connect the plant with the energy system of the country," Martin Dimitrov, co-chairman of the Parliamentary Group of the Blue Coalition, said. "Marin Angelov was dismissed because he sent this letter. Anyone who has anything to do with this will have to face the music," Energy Minister Delyan Dobrev warned on Thursday. "This letter is a clear sabotage against the government. I find it hard to believe there are still people who are not aware this project is a thing of the past," he added. The minister went as far as to thank the right-wing opposition for alerting the government about this letter. Bulgarians will probably vote on the future of its Belene nuclear station before the end of the year, but the right-wingers says the referendum will just be a tool to legitimize the nuclear plant construction. The referendum was initiated by the Socialists and backed the ruling party. Bulgaria decided to abandon plans to build its second nuclear power plant in March this year after failing to agree on its cost with Russian company Atomstroyexport, a subsidiary of Rosatom, and find Western investors. Bulgaria's government is currently tangled up in a EUR 1 B dispute with Russia over the termination of the Belene project. Last month recently registered US consortium Global Power Consortium expressed interest in taking over the project to install two 1,000 megawatt nuclear reactors at the Danube River town of Belene and build it without state funds or guarantees. The companies behind the consortium however are yet unknown.
Source: Standart (19.10.2012)

Nearly three years after Bulgaria cancelled relations with one of the leading rating agency Fitch-it is to work for our country again. Now it is hired by the Bulgarian Energy Holding, which needs rating in order to issue bonds to the amount of EUR 250 million on international markets. With it the company plans to cover the remaining debt of NEC, its subsidiary, which is assessed to EUR 195 million and is taken for the project "Belene”. Its maturity expires at the end of May next year. BEH officially stated that Fitch is the chosen candidate. The reason is the lowest price offer, which was the basic requirement. BEH’s intention to issue bonds on the international markets became clear in September. The bonds are to the amount of EUR 250 million, the term is 5 years.
Source: Capital (26.10.2012)

Sofia Signs New Contract with Gazprom on November 9th The Bulgarian government is expected to sign a new contract with Russia's state-owned company Gazprom, regarding the supply of natural gas to the 7.2-million country. The new contract can be signed on November 9th, Energy and Economy Minister Delyan Dobrev told the Bulgarian news agency BTA in Brussels. An agreement between Sofia and Moscow about the construction of the South Stream natural gas pipeline is also to be signed on November 9th. According to Mr. Dobrev, the term of the new contract between the Bulgarian government and Gazprom will be six years and it will come into force as of January 1st, 2013. The prices of the Russian natural gas that Bulgaria is to receive under the new contract have not been discussed yet, but Minister Dobrev made it a point that they should be more favorable. He visited Brussels to discuss the construction of the South Stream and Nabucco West pipelines with representatives of the European Commission. On the whole, Bulgaria's EU partners supported the construction of the Southern Natural Gas Corridor, which will supply natural gas from Azerbaijan via Turkey, including the Nabucco pipeline, as well as the Russia-backed South Stream.
Source: Standart (30.10.2012)

The revenues of the Bulgarian Energy Holding (BEH) JSC for the first nine months of 2012 were double the amount for the same period of last year, showed the published financial report of the Finance Ministry. The gross profit for January-September is almost equal to the revenues, totaling BGN 560.86 mln, while last year’s profit before taxes was BGN 235.1 mln. The gross profit of Bulgartransgaz for the period amounted to BGN 94 mln, up from BGN 83 mln last year. The Kozloduy NPP concluded the first nine months of 2012 with a pre-tax profit of BGN 142.6 mln, compared to BGN 178.2 mln for the same period of last year. The company’s revenues amounted to BGN 655.1 mln, registering a slight decrease of 2.4%, compared to the same period of 2011. Proceeds from electricity accounted for the largest share (95%) in the structure of revenues from the overall operation of the plant. These decreased by BGN 25.75 mln (4.03%), mainly due to the 3% drop in the electricity sold during the period, compared to 2011. The costs incurred for the activities of Kozloduy NPP amounted to BGN 515.4 mln. For the first nine months of 2012, another company of BEH – the National Electric Company (NEK) accumulated a loss of BGN 77.2 mln, compared to a profit of almost the same amount for January-September 2011. This is due to the low selling wholesale prices of electricity on the regulated market, as the company has already warned. However, after the hike of electricity prices as of July 1, 2012, NEK posted a profit for Q3 of the year, as per preliminary data.
Source: Trud (05.11.2012)

Bulgarian Energy Holding to Sign Final Investment Decision on South Stream Bulgaria's government has authorized Delyan Dobrev, Minister of Economy, Energy, and Tourism, to grant permission to Bulgarian Energy Holding EAD to adopt a final investment decision on the South Stream gas pipeline project on Bulgarian territory. The condition for the adoption and the signing of a final investment decision on South Stream is the signing of a gas supply contract for 2013 between Bulgaria's Bulgargaz EAD and Russia's Gazprom Export whose key points satisfy the Bulgarian state-owned gas supplier. Earlier Wednesday it was announced that the Bulgarian Energy Holding would sign the contract with Gazprom on Friday. The parameters of the final investment decision were discussed at Wednesday's Cabinet meeting. The pipeline project includes a 540-km long main pipe with a divergent 59km section to Provadia, three compressor stations with the corresponding loops to the main pipe, with a technical capacity of a total of 63 billion cubic meters of gas per year. The total indicative construction cost of the project is EUR 3.308 B but the estimation is yet to be revised and updated as the designing and the environmental impact assessment procedures progress. The project is estimated to have a payback period of up to 15 years after the start of the commercial exploitation of the gas pipeline on Bulgarian territory. A few days ago, right-wing party Democrats for Strong Bulgaria accused Prime Minister Borisov of conducting secret negotiations with Russia over the South Stream project. However, Dian Chervenkondev, Deputy Chair of the Parliamentary Energy Committee and MP of center-right ruling party GERB, insisted that the activities surrounding the agreement on the project were transparent and all steps had been coordinated between all project participants, including the European Commission.
Source: Capital (08.11.2012)

BEH to sign with Gazprom for South Stream Minister of Economy, Energy and Tourism Delian Dobrev will authorise the Bulgarian Energy Holding JSC to accept a final investment decision on the South Stream project in Bulgaria, the ministers decided on Wednesday. A condition for the adoption and signing of the final investment decision is the conclusion of a new contract between Bulgargaz JSC and Gazprom Export for gas supplies to Bulgaria in 2013, which has to meet Bulgargaz's critical issues. The gas pipeline's main pipe is approximately 540 km long with a diversion to Provadia of 59 km and three compressor stations - Varna, Lozen and Rassovo, with a technical capacity of 63 billion cubic metres of gas annually. The target date for redemption of the investment will not exceed 15 years from the start of the gas pipeline's commercial exploitation on Bulgarian territory. As for the base period to reach the necessary level of the internal rate of own funds return, the parties have agreed on 25 years, starting from the issuance of the operation permit. The internal rate of return, provided in the Protocol, is 8% of own funds invested in the project. In case the requirements for project financing are met and in case of inability to provide it 100%, OAO Gazprom will provide funds to cover BEH JSC's own funds invested in the construction, but this will not change the equal participation of BEH JSC as a shareholder. The allocated funds to cover BEH JSC's deductibles will return through dividends from the activities of the South Stream Bulgaria AD. The South Stream project involves state institutions, as well as public and private companies from Austria, France, Germany, Italy, Greece, Bulgaria, Serbia, Hungary, Slovenia and Russia. Its main objective is, at achieving an acceptable return for the investors, to provide natural gas from Russia to meet growing demand for natural gas in Europe.
Source: Class (08.11.2012)

M. Andonov: There is enough information on the South Stream project “The Bulgarian society has been presented with sufficient information on the South Stream pipeline project,” Mihail Andonov, Executive Director of the Bulgarian Energy Holding (BEH) said on BNR on Sunday. “Everything that could be said before signing the contract on November 15 has been said,” he underlined, commenting on President Rosen Plevneliev’s statement from Saturday that there is not sufficient information about the project. According to Andonov, the Head of State has also been given adequate information. The signing of the South Stream contract was postponed to November 15 because of the day of national mourning in Bulgaria for the death of Patriarch Maxim. “No one has held secret negotiations. Bulgaria’s interests are adequately protected. Everything is transparent,” assured BEH’s head. He specified that the talks on the South Stream project had been held by BEH on behalf of Bulgaria, and Gazprom on behalf of Russia, which are are shareholders in the gas pipeline. “The most recent intense talks were held in August and September. We are now ready to sign the investment decision,” explained Mihail Andonov. “The State and BEH have not undertaken any commitments for financing the South Stream gas conduit,” he pointed out. “The term of operating the pipeline is 25 years and its life cycle - 40 years. The facilities will be owned by the South Stream Bulgaria company, in which we and Gazprom have an equal 50% stake,” specified Mihail Andonov. He explained that the real price of gas will become clear after all tenders for supply of pipes and other materials are held. However, Andonov is adamant that the proceeds from the gas conduit are guaranteed.
Source: Class (12.11.2012)

President Rosen Plevneliev: It's final: Bulgaria will sign on South Stream on November 15 The final investment decision on the South Stream gas pipeline will be signed on Thursday, President Rosen Plevneliev said after a meeting with Minister of Economy, Energy and Tourism Delian Dobrev on Monday. The Minister gave the President a report on the South Stream project. Plevneliev said he will examine the report and stressed that an approach to transparency is important. Our country will have to invest about ˆ500 mln in the South Stream project, Minister of Economy, Energy and Tourism Delian Dobrev stated in an interview for Nova TV about the investment decision our country has to sign for the construction of the gas pipeline. Dobrev reminded that the company South Stream Bulgaria was created in 2010 and its shareholders include the Bulgarian Energy Holding (BEH) and Gazprom. They have equal stakes in it. At the signing of the agreement, it was agreed that the pipe will be financed by 70% attracted funding and 30% own funding. According to estimates of engineers working on the gas project, the pipe will cost about ˆ3.3 bn. Since Russia and Bulgaria have equal shares in South Stream Bulgaria, roughly estimated, our country will have to invest about ˆ500 mln in the project. Dobrev said, however, that our country lacks the necessary resources to make the investment. The Economy Minister reminded that the term of exploitation of the pipe is 25 years and the life cycle is 40 years. Regarding the new parameters of the project, he stated that there will only be a change in the technical requirements for the pipe.
Source: Class (13.11.2012)

Bulgaria negotiates more than 20% lower price for Russian gas The new contract with Gazprom for gas supply to the country will be for a period of ten years and at prices which are 20% lower than before, became clear at the signing of the contract on Thursday. The document was signed by Deputy Chairman of Gazpromexport Alexander Medvedev and Executive Director of Bulgargaz Dimitar Gogov. The final investment decision on the South Stream gas pipeline, however, will be signed by Alexei Miller, Gazprom's Chairman, and Mihail Andonov, Executive Director of the Bulgarian Energy Holding. The ceremony at the Council of Ministers was attended by Prime Minister Boyko Borissov and Minister of Economy, Energy and Tourism Delian Dobrev. During the negotiations, a more than 20% decrease in the price of natural gas for the country was achieved, i.e. a discount of another 9-10% of the 11% reduction agreed for the period April-December this year. The contract's term is 10 years, but in the sixth year, Bulgaria will have the right to renegotiate both the price and quantity of supply, depending on local production. The contract states that the annual gas supplies to Bulgaria will be 2.9 billion cubic metres, since the commercial clause "take or pay" refers to 80% of the volume (versus 90% in the previous contract). Energy Minister Delian Dobrev said that the exact price of gas for Bulgaria is a "trade secret", but it is one of the lowest, although slightly higher than that for Germany. According to Prime Minister Borissov, the achieved price is the lowest possible for a country which does not invest in the facilities. In this regard, Alexei Miller explained that Gazprom has a number of joint energy projects with Germany from which it also has revenues, therefore the price of gas there is lower.
Source: Class (16.11.2012)

Bulgaria Joins the Club of Big Gas Players Bulgaria now ranks among the big gas players. This has become possible after the country took its final investment decision on the construction of the Bulgarian sector of the South Stream pipeline. The document was officially inked in the Granite Hall of the Council of Ministers by CEO of the Bulgarian energy holding Mihail Andonov and Chair of the Gazprom Directors’ Board Alexey Miller. “This decision makes Bulgaria one the biggest transitors of natural gas in Europe; 63 billion cub.m/y of gas that will flow via Bulgaria to the West will make Bulgaria one the biggest gas players on the Old Continent, Miller said after putting his signature under the document. He added that now a gas supply crisis, similar to the one occurred in 2009, are ruled out in Bulgaria. “The South Stream pipe guarantees that Bulgaria will always be able to divert gas for its needs and the Bulgarians will never remain in the cold,” PM Boiko Borisov commented. The Premier said further that the negotiations were tough, especially when it came to setting the price in the new agreement. The parties started negotiating late Thursday evening right after Moscow’s “heavy artillery” arrived in Sofia. To the Bulgarians’ surprise Miller brought along his deputy Alexander Medvedev. “We have put in great efforts to get rid of the three intermediaries in gas supplies to Bulgaria. We have been wasting millions on them at the expense of the Bulgarian consumer. We have been discussing this particular topic till morning,” Borisov said.
Source: Standart (16.11.2012)

Gazprom to Build TPP in Bulgaria Gazprom is working hard for the construction of a gas-fueled Thermal Power Plant (TPP) in Bulgaria, it transpired from the words of Gazprom president Alexey Miller straight after the signing of the new contract for natural gas deliveries from Russia in 2013 and the final investment decision on the South Stream natural gas pipeline on Bulgarian territory. "According to the already made preliminary analysis on the possibility for the construction of steam-gas power plant in Bulgaria we have already spotted three potential sites. After more thorough research their number may increase,” Mr Miller stated further. In an interview for Economics magazine in February Alexey Miller explained that several European countries get Russian natural gas at lower prices because Gazprom makes business on their territory. Part of these activities are namely the construction and exploitation of gas-fueled TPP. In case such a TPP is built in Bulgaria this may have a positive effect on the price of natural gas in Bulgaria,” Mr Miller stated then. "Thus the conditions for the Bulgarian citizens will become even better,” Alexey Miller said.
Source: Standart (16.11.2012)

Bulgaria's Maritsa Iztok 2 Thermal Power Plant to Get 2 New Units The Bulgarian Energy Holding (BEH) and the management of the state-owned Maritsa Iztok 2 thermal power plant (TPP) have an investment plan to build two new units at a specially earmarked site at the plant. The announcement for the construction of the future units 9 and 10 at the Maritsa Iztok 2 TPP was made by Pencho Penchev, director of the Repairs Directorate at the plant. Speaking Friday in the southern city of Stara Zagora, Penchev made clear that the opportunities for building units 9 and 10 at the Maritsa Iztok 2 TPP were being studied and the government was looking for a strategic investor. Penchev noted that the costs and revenues would be split on the basis of percentage ownership. He explained that the entire plant, including the units that were to be built, would be run by the staff of the Maritsa Iztok 2 TPP. Penchev announced that the option of supplying coal from the state-owned Maritsa Iztok Mines to the two new units of the TPP was being examined. He said that each of the new units would have an increased capacity of 280 MW. The head of the Repairs Directorate at the Maritsa Iztok 2 TPP announced that the projects would be implemented by the repair staff of the state-owned company and supervisors from Japan. Penchev emphasized that the scope of the reconstruction had been expanded and the high-pressure cylinder would be made in Japan by Toshiba. He said that the reconstruction would add at least 40 MW to the total installed capacity of the Maritsa Iztok 2 TPP of 1600 MW.
Source: money.bg (19.11.2012)

BEH CEO: Gas Prices for End Consumers to Go down by 10% The price of natural gas in Bulgaria will go down by over 20% after the latest contract with Russian energy giant Gazprom, says the CEO of the Bulgarian Energy Holding, BEH, Mihail Andonov. Speaking Saturday for Darik Radio, Andonov noted the price reduction would be in the vicinity of 22% - 23% under the new contract, but this would not be the reduction for the end consumer. The contract with Gazprom for natural gas supplies was signed Thursday in the presence of Gazprom CEO, Alexey Miller. "Bulgargaz sold gas at a price below the cost it was purchasing it for, but it is regulated by the State Commission for Energy and Water Regulation, DKEVR. I expect the price for end consumers to go down by 10%, which will also affect the prices of electricity and heating," said the BEH CEO. Earlier Saturday, Bulgargaz Head, Dimitar Gogov, announced the reduction for end consumers will be about 6% - 7%, but Andonov noted Gogov was protecting the interests of his company and reiterated the country has an energy watchdog. He was firm consumers must pay their bills regularly and on time, otherwise the achieved discount would "melt" in a year and a half.
Source: investor.bg (19.11.2012)

Natural Gas from Russia Not that Much Cheaper Buyers and dealers of natural gas in Bulgaria have been busy calculating how much exactly the sector of industry will save on the newly-negotiated price of the natural gas imported from Russia. The new agreement between the Bulgarian government and Gazprom was signed on November 15th, providing 20% reduction of the prices of Russian natural gas imported to Bulgaria from January 1st, 2013. It is now up to the state energy and waters regulatory commission to decide on the price at which Bulgargaz will be selling the fuel to the Bulgarian buyers, after the company submitted its offers to the state regulator on November 10th. From the new contract between the industrialists and Gazprom Export it becomes clear that the sector might save not more than 40 million levs from the new natural gas supply contract. The chair of the Bulgarian federation of the industrial energy consumers (BFIEC) Konstantin Stamenov calculated the new prices. "For the past year the Bulgarian industry consumed about 550 million cubic meters of natural gas.
Source: Standart (26.11.2012)

EU opens investigation into Bulgarian Energy Holding for possible abuse of dominant position The European Commission said on Monday it has launched an investigation whether state-run Bulgarian Energy Holding (BEH) is abusing its dominant position on the wholesale electricity market in Bulgaria. “The Commission has concerns that BEH might be hindering competition on wholesale electricity markets in Bulgaria and neighbouring member states through territorial restrictions,” it aid in a press release published on its website. The Commission will investigate certain provisions in electricity supply agreements entered into by subsidiaries of BEH, which include clauses, prescribing where the electricity has to be delivered. These provisions may constitute territorial restrictions and thus both hinder competition and undermine the integration of EU electricity markets. BEH (www.bgenh.bg) incorporates the assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned subsidiary Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: Capital (04.12.2012)

M. Andonov: We are currently complying with the EC's requirements On Tuesday, Mihail Andonov, CEO of the Bulgarian Energy Holding (BEH), explained for BNR the Holding's position with regard to the letter from the European Commission of a possible misuse of BEH's dominant position on the market for electricity. The letter from the EC specifies no practical example. The initiation of proceedings does not mean that a violation has been discovered, but that the case is tried as a priority. We are currently implementing the requirements of the EC and we are dividing NEC and the Electricity System Operator. The separation of the two companies will be completed in February-March 2013. In a statement from Tuesday morning, the Holding says: "Since June this year, BEH and its subsidiaries have taken all necessary action to enforce the requirements of the Third Energy Liberalisation Package in their work. BEH's subsidiaries, Kozloduy NPP, TPP Maritsa East 2 and NEC drafted rules for the implementation of procedures for the sale of wholesale electricity. These rules are posted on the websites of the companies. All procedures which have been carried out by companies, so far, are in full compliance with and following the rules of trade. The Holding expects that the division of NEC and ESO, as well as the open procedures for electricity trade announced by our companies, in practice will implement the Third Energy Package's liberalisation procedures. After the division of NEC Ltd. and ESO Ltd., all contracts for the production and supply of energy to the market will be reviewed in the spirit of the liberalisation requirements of the Third Energy Package. The new rules for natural gas transfer by Bulgartransgaz announced last week are also an element of the implemented market transparency.
Source: Class (05.12.2012)

Bulgargaz offers to lower gas prices by 9.3% as of January 1, 2013 Considering the factors forming the level of gas prices, Bulgargaz JSC offered the State Energy and Water Regulatory Commission (SEWRC) to confirm a price of natural gas for the first quarter of 2013 amounting to BGN 660.64 per 1,000 cubic metres of natural gas, VAT and excise duty excluded, the company announced on Monday. Compared to the current price, the BGN 67.70/1,000 cu m (9.30%) decrease is a result of the agreement with the Russian side on lower delivery prices of natural gas. The proposed price includes a 2% surcharge - BGN 12.42/1,000 cu m and BGN 7.58/1,000 cu m for the recovery of Bulgargaz JSC's income from prior periods. In accordance with the requirements of the Gas Price Regulation Ordinance, every three months Bulgargaz JSC, a subsidiary of the Bulgarian Energy Holding JSC, has to prepare and submit to the SEWRC a proposal on confirmation of natural gas sales price.
Source: Class (11.12.2012)

Bulgarian Natural Gas Also Goes down in Price The natural gas extracted in Bulgaria, will go down in price as of 2013," Bulgaria's minister of economy and energy Delyan Dobrev informed. The contracts of the companies which extract natural gas in Bulgaria read that the purchasing price of natural gas will be by 35% lower than the imported gas. "The new contract for natural gas deliveries recently signed with Gazprom reduces the price of gas by 20% which means that the price of the gas extracted in Bulgaria will also go down by the same percentage," minister Dobrev added. The size of the extracted natural gas in "Bulgaria will increase from the current 490,1 million cubic meters a year to 656 million cubic meters in 2014. Thus, its share will increase from 15% to over 20% from the consumption of gas," Mr Dobrev calculated. "From May 2013 Bulgaria will be able to import gas from Romania through the interconnector between the two countries which will be ready by this time," Deputy Minister of Economy and Energy Evgenia Haritonova stated at a conference organized by the Bulgarian Energy Holding (BEH). "The future of the interconnector with Turkey will be decided on January 10, 2013," stated BEH CEO Mihail Andonov. This will happen during a meeting of the energy ministers of the countries which take part in the Nabucco project.
Source: Standart (12.12.2012)

A court in the Bulgarian city of Varna has declared local chemical products maker Polimeri [BUL:51P] insolvent, the company said on Tuesday. The court approved on December 12 an insolvency request against Polimeri filed by the Electricity System Operator (ESO), the chemical company said in a statement to the Sofia bourse. A meeting of the company’s creditors is scheduled for January 29, the statement added. Polimeri's liabilities to ESO amount to some 36,000 levs ($24,200/18,400 euro). Last year, the chemical producer posted non-consolidated net loss of 10.04 million levs.
Source: Capital (19.12.2012)

Bulgaria to Renegotiate with Moscow Gas Transit to Greece The Bulgarian government will renegotiate with Moscow the agreement on the transit of Russian gas to Turkey and Greece via the pipeline of Bulgaria's Bulgartransgaz. The reason are the new requirements to gas transit grids set by the EU. According to the new EU rules, all pipes' owners have to declare their vacant capacities and to offer opportunities to all gas traders to transit the corresponding volumes of natural gas. Currently, however, only Russian gas is flowing through the Bulgarian pipes to the country's southern neighbors. If no agreement complying with the EU requirements is reached between Sofia and Moscow by January 1, 2017, Bulgaria will terminate the agreement concluded in 1986, the Council of Ministers reported.
Source: Standart (20.12.2012)

The international consortium developing the Shah Deniz II gas field offshore Azerbaijan is expected to sign an agreement to acquire a 50% stake in the Nabucco gas pipeline project, according to Mihail Andonov, CEO of the Bulgarian Energy Holding (BEH). BEH is a Nabucco shareholder, alongside Turkish Botas, Romanian Transgaz, Hungarian MOL, Austrian OMV and German RWE, each of them controlling 16.7% stakes. Austrian Minister of Economy Reinhold Mitterlehner informed in early October that the partners in Azerbaijan's Shah Deniz II gas field were in talks for the acquisition of a stake in the Nabucco consortium. At the beginning of December, it was announced that Austrian OMV was in talks to buy the stake of German RWE in Nabucco. At a Thursday press conference, Andonov explained that each of the Nabucco shareholders would sell a part of their stake to the Shah Deniz II consortium. Andonov also told journalists that there were no indications that Botas would leave the Nabucco project. After the deal, the partners in the Shah Deniz II gas field would control a 50% stake and the Nabucco shareholders would be left with 10% stakes, the CEO of BEH made clear. Andonov noted that the money that the new participant would pay to enter the Nabucco project would be used to finance the pipeline. The agreement for the inclusion of the Shah Deniz II consortium as a shareholder in Nabucco is expected to be signed on January 10 in Sofia at a meeting of the energy ministers of countries participating in the gas pipeline project, according to reports of mediapool.bg. The agreement will determine which pipeline Shah Deniz II partners will use to carry Caspian gas to Europe. The Shah Deniz II partners are expected to decide between the shorter version of Nabucco, the 1300-km long Nabucco West, and the Trans-Adriatic pipeline (TAP). The deal is believed to be essential for the EU/US-backed Nabucco project because it will secure gas supplies, which will enable the Nabucco consortium to obtain loans for the construction of the pipe. The Shah Deniz II consortium includes UK's BP (25.5%), Norway's Statoil (25.5%), Azerbaijan's SOCCAR (10%), France's Total (10%), Russian-Italian Lukagip (10%), Iran's NIOC (10%), and Turkey's TPAO (9%). Meanwhile, Kiril Temelkov, Executive Director of state-owned Bulgartransgaz company, announced that the concept for the construction of the Bulgaria-Turkey gas grid interconnection was clear. He explained that Bulgaria wanted the gas link to be part of Nabucco and to use the EUR 200 M granted by the European Commission for the implementation of the gas pipeline project. Temelkov declared that the Bulgaria-Turkey gas grid interconnection was to be ready by end-2014. The CEO of Bulgartransgaz added that no official agreement had yet been signed on the project despite the fact that a number of agreements in support of its implementation were in place.
Source: Capital (21.12.2012)

The state-run Bulgarian Energy Holding (BEH) expects to post a profit of some 36 million levs ($24.4 million/18.4 million euro) this year on gross revenue from sales of 6.46 billion levs, the company’s chief executive officer said on Thursday. The company plans a bond of no less than 350 million euro ($465.1 million) in 2013 and expects to be assigned a credit rating by Fitch by the middle of January before proceeding with the issue. It has not been decided how the proceeds will be spent, Mihail Andonov told a press conference in Sofia. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, NEK and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. The company’s assets equal 12.8 billion levs while its capital is 8.84 billion levs. About 22,600 people work for BEH.
Source: Capital (21.12.2012)

Bulgarian energy holding is to apply for a license for a fourth mobile operator in Bulgaria. For this purpose subsidiary Bulgartel will be used, as it owes network for transfer of data in Bulgaria and other countries. At present Bulgartel provides telecommunications services in Macedonia.
Source: investor.bg (21.12.2012)

Japanese Companies to Build Smart Networks for NEC Japanese companies Mitsubishi and Hitachi will construct the so-called smart networks along the Bulgarian power distribution mains. The step was negotiated during the visit of Bulgaria’s minister of economy, energy and tourism, Delyan Dobrev, to Japan, the CEO of the Bulgarian Energy Holding (BEH), Mihail Andonov, informed. “Negotiations are underway between the National Electric Company (NEC), the Electricity System Operator and the Japanese companies in order to specify when and how the work on the pilot project would start. Most probably the site of the project will be northeastern Bulgaria where wind farm Kaliakra Wind Power, owned by Mitsubishi Heavy Industry is located,” Mr Andonov stated. The purpose of the smart networks is to reduce the power losses along the power mains. The networks will also make sure that the generated at a certain moment power corresponds to the consumption of power in the country and the power export. The BEH and its daughter company NEC have already started negotiations with banks for revision of the credit conditions and renegotiations of the received credits.
Source: Standart (21.12.2012)

Bulgaria Power Exports Shrink by 21% "Bulgaria exported 21% less power end-November, 2012, compared to the same period of 2011," Ivan Yotov, CEO of the Electricity System Operator (ESO) stated. The total amount of exported power till the beginning of December, 2012 is 7.7 billion kilowatt/hours while in 2011 it was 9.752 billion kilowatt/hours. The reason for the decreased amount is the general stagnation on the electricity market in the Balkan region which to a great extent refers to the financial problems in Greece. Relatively warm weather also reduces power consumption, Yotov explained. There have been certain problems in payments to the Electricity System Operator on the part of the Greek operator. “Currently our company even had to wait for three months to receive the money,” he said. Yotov added that the price of power on the international markets has fallen. During the tenders on the capacities of the power grids the prices decreased three and half times, which will also have a negative effect on the ESO revenues from fees. At the same time this will provide an opportunity for setting more advantageous prices of power generated in Bulgaria, which will be a benefit for the National Electric Company and Electricity System Operator and power plants.
Source: Standart (21.12.2012)