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

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

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

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

A ustria's EVN and Bulgarian gas monopoly Bulgargaz are holding talks for the settling of Plovdiv heating utility's (Toplofikatsia) debts. This is among the requirements of the Privatisation Agency (PA) for the privatisation of Toplofikatsia by EVN, Bulgargaz representatives told the Pari daily. It is good for Bulgargaz to sign a contract for the settling of Toplofikatsia Plovdiv's BGN 14.5 million debts with the new owner of the heating utility. EVN is holding talks with the PA for the privatisation of the heating utility in Plovdiv and the finalisation of the deal will not be delayed, the Austrian company said. Bulgargaz and EVN are close to signing an agreement, PA's executive director, Todor Nikolov, told Darik Radio. EVN is expected to acquire Toplofikatsia Plovdiv by the end of 2007 at the latest. Nikolov's most optimistic forecast is that the deal may be sealed within the next five days. EVN won the privatisation procedure for Toplofikatsia Plovdiv a year ago with its EUR 32 million bid. The contract for the purchase of 100% in the company was signed in July 2007.
Source: Pari (27.11.2007)

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