Bulgaria Threatened by Gas Cut-off The consumers of natural gas in Bulgaria are threatened by shorter supplies, if the argument between Ukraine and Russia continues. According to Bulgargaz CEO Dimitar Gogov, the situation will become critical if the gas supplies drop to 6 or 6.5 million cubic meters a day. The average gas supplies to Bulgaria are slightly over nine million cubic meters, but they have fallen by about fifteen percent since last Friday.
Source: Standart (05.01.2009)

The beginning of the new year brought new gas problems. Russia and Ukraine cannot come to agreement over the price of natural gas and that disturbed gas deliveries to a number of European countries, among which is Bulgaria, too. There is no threat of gas shortage for the gas consumers, Feran Taradelas, spokesman for the European Commissioner on Energy Andris Piebalgs, said. According to him, the most affected countries are Hungary, Slovakia, Romania, and Poland but there are no serious problems in any country, member of EU. The conflict between Russia and Ukraine is mainly commercial and the eurocommission will not take the role of mediator, he commented. According to statistics, reserves of the European countries are between 70 and 90%, which are sufficient. Yet, the conflict raised the question for alternative ways for the gas supplies from Russia, the country that provides 25% of the blue fuel for Europe. By the end of 2008, Russia wanted Ukraine to pay USD 413 for 1,000 cubic m plus USD 600 million fees for delayed payments. Ukraine denied to pay the fees and said the price was too high: it was ready to pay not more than USD 235 for 1,000 cubic m. The decreased supply by 20-30% will not seriously influence Bulgarian economy as it is working with lower capacities at the moment but the most affected will be metallurgy and power heating utilities, Bozhidar Danev, chairman of Bulg
Source: Pari (06.01.2009)

Bulgaria is the only one among the seven countries hurt by the gas supply dispute between Gazprom and Ukraine with no alternative. Russia’s president Vladimir Putin ordered the state-run gas monopoly to slash gas flows via Ukraine by 18%, which it allegedly pinches from the transit on its territory. Unlike Hungary, the Czech Republic, Romania, Greece, Turkey and Poland, which are also fed less gas than contracted, Bulgaria has neither supply routes skirting Ukraine nor liquefied natural gas terminal. In addition, the country has a single gas repository and cannot tap on other reserves. Bulgargaz, the Bulgarian state-controlled gas supplier, has already worked out a schedule for reduced flows it is ready to put in place, the Government’s press office said after Prime Minister Sergey Stanishev, Energy Minister Petar Dimitrov and Bulgargaz management discussed the issue.
Source: Dnevnik (06.01.2009)

Bulgaria Crashed by the Gas War The gas war shoveled Bulgaria into a freezer. This country has happened between the blows Moscow and Kiev are exchanging. Without a warning yesterday at 3:25 a.m. the gas supply for Bulgaria was stopped. This stirred panic in the whole country. The heating companies en masse decreased the supply for homes and offices. Schools, hospitals and nurseries remained in the cold. People rushed to buy electrical heaters. The big consumption of electricity led to breakdowns in the electricity network. Half of Sofia was switched off in the early afternoon. Electricity supply restrictions are inevitable if the central heating is stopped everywhere, sources from the National Electric Company informed. Bulgaria's Prime Minister, Sergey Stanishev urgently summoned his ministers to find way-outs of this crisis.
Source: Standart (07.01.2009)

Stomana Industry reduced the gas consumption Stomana Industry JSC has reduced to a minimum the gas consumption, said the executive director Emil Hristov. Currently the metallurgical company is using 3 500 cub. m./hour, while the usual quantity is over 4 000 cub.m./hour. We are unable to use alternative fuel, said Anton Petrov – representative of Viohalko in Bulgaria. Through its subsidiary Sidenor, Viohalko is owner of Stomana Industry, Sigma, non-ferrous metalsmaker Steelmet and Sofia Med. BThe gas supply has not yet been changed. Stomana Industry has not received a warning to reduce the quantities, but the company has sent a representative to meet with the director of Bulgargas. If the gas supply is suspended Stomana Industry should stop, Petrov said. The metallurgical plant is one of the many that cut off their productions because of the financial crisis and the gas price hike of 23.89% from October.
Source: Dnevnik (07.01.2009)

Bulgaria's President: We should restart NPP Kozloduy Units "Bulgaria should immediately restart the third unit of Kozloduy NPP," Bulgaria's President Georgi Parvanov appealed yesterday. He reminded that according to art 36 of Bulgaria's EU Accession Treaty, in a crisis situation, this country is allowed to switch on the decommissioned units. The current situation is an exemplary crisis. The President said that alternative gas suppliers were necessary. "I hope in the light of the current events even my most fervent opponents will understand why I visited Turkmenistan, Azerbaijan, Egypt and Turkey. The aim was not simply establishing gas supply alternatives but construct a network of pipelines that will prevent crisis situations like that," the President said. A team of experts is already working in Kozloduy NPP on the schedule for the reactor's restart. "It will take about a month," said Ivan Genov director of Kozloduy NPP. Thus, 440 megawatts more would be secured for Bulgaria's energy system. "If everything goes on schedule unit 4 might be restarted in a month and a half," told The Standart Rasho Parvanov in charge of Operation direction in Kozloduy NPP. "We have unused fuel on stock that will let us charge the reactor in about a month. Afterwards all systems should be thoroughly tested. However, before the reactor is restarted it needs to be certified for electricity production," explained for The Standart the chairman of the Nuclear Regulatory Agency (NRA) Sergey Tsochev. Currently, units 3 and 4 of Kozloduy NPP have licenses but they are not for production of power. Tsochev promised that the NRA would do its utmost to be in total synchrony with the efforts of the staff at Kozloduy in order to shorten the term for the restart of the units. Bulgaria has never submitted a request for restarting the decommissioned units of Kozloduy Nuclear Power Plant (NPP), according to a statement by EC's Spokesman for Energy Ferran Tarradellas cited by dnevnik.bg. The e-edition reported yesterday that Sergey Stanishev had had a phone conversation with Energy Commissioner Andris Piebalgs and that Tarradellas had said categorically that the restart of Kozloduy's units 3 and 4 was unthinkable.
Source: Standart (07.01.2009)

Bulgarian Business Wants to Sue Gazprom Sources from the Bulgarian Industrial Association BIA say all countries affected by the gas crisis should file a collective claim against Russia's Gazprom. Let Russia settle the argument with Ukraine, but we have contracts with Gazprom and we can sue the Russian company, representatives of the Bulgarian business say. They also say that all companies should use alternative fuels or, should need be, use natural gas from the state reserve. Thus, only the companies which cannot use diesel or dirt oil will keep consuming natural gas. BIA appeals to the business to use the reserves of the gas depot near the village of Chiren only in crisis situations like the current one.
Source: Standart (07.01.2009)

Bulgaria's Energy Minister: Gas Crisis Will Be over In One Week Bulgaria's Energy and Economy Minister Petar Dimitrov stated that the gas shortage caused by the Russia-Ukraine price dispute would be over in a week. Dimitrov made this statement after his meeting with representatives of sixty large Bulgarian industrial consumers of natural gas, during which he informed them of the measures to restrict gas consumption. The Bulgarian government is introducing austerity measures in natural gas consumption starting at 8 am on Thursday, January 8, after the country was cut off from the Russian gas supplies early Tuesday morning. The industrial consumers have expressed their concerns that some plants might have to be shut down because of the natural gas shortage. Dimitrov himself announced that Bulgaria's chemical industry would suffer the most from the lack of gas.
Source: Darik Radio (08.01.2009)

Mass bankruptcies because of the gas crisis Bulgarian companies may hit the rock bottom because of the gas crisis as many of the installations operate only with the blue fuel, said the head of Confederation of Employers and Idustrialists in Bulgaria, Evgeny Ivanov. According to him the losses each day reach half a billion. In the next few days several of the leading metallurgical companies in the country may go bankrupt, said the CITUB union leader Vassil Yanachkov. They are Stomana Industry SA in Pernik, Promet in Bourgas, Shoumen-based Alcomet, Sofia Med and Steelmet in Sofia. Only a few installations operate on gas at Kremikovtzi, however, the supply as at minimum and in case of further decrease of the gas supply, emergency situations and ecological crisis may occur, the union said.
Source: Novinar (08.01.2009)

Bulgaria to import gas from Turkmenistan, Azerbaijan and Egypt Construction of an intersystem 70-km connection from Comotini to Dimitrovgrad would allow Bulgaria to use the negotiated gas supplies from Turkmenistan, Azerbaijan and Egypt. This option was discussed at the National Security Consultancy Council, called by the president Parvanov. According to him, the pipeline may be constructed either entirely by national funds, ot by European program financing or public-private partnership. An option for a terminal for liquified gas in Greece was also discussed.
Source: Novinar (08.01.2009)

The Europe gas tap was turned off The gas supply for all Europe was cut off. Supply in Russian natural gas through the territory of Ukraine was stopped. Most national operators of EU members signalled immediatelly to the European Commission. Austria, the Czech republic, Slovakia, Croatia, Slovenia, Romania and Serbia have signalled out. By the pipe for Bulgaria, the supplies for Greece, FYR Macedonia and a small part of the deliveries for Turkey were cut off. The main eastern pipeline stooped the supplies the night before Wednesday, also said Germany-based RWE Transgas. Hungary alarmed for significantly decreased supplies as well. Polan-based Gaz System stated that now the country is delivered Russian gas only through Belarus. Approximately one fourth of the blue fuel used in the EU is supplied by Russian sources. The chairman of the board of directors of the Russian gas gaint, Alexey Miller, said that the company ‘does not see any point of gas deliveries’ to the Russian-Ukrainain border due to the full blockade of the supplies by Kiev.
Source: Standart (08.01.2009)

President Parvanov: Bulgaria Can Survive 100 Days Bulgaria can survive the gas crisis for 90 to 100 days applying restrictions and without cutting off electricity and central heating, said yesterday president Parvanov after the meeting of the National Security Consultative Council. He explained that all recourses in the country have been mobilized, as the production of Galata and Chiren natural gas deposit supply daily 4 million cubic meters of gas. Parvanov added that all authorities agreed Bobovdol thermal power plant to be set in operation soon. Bulgaria's President pointed out as priorities Nabucco and South Stream pipeline projects. "Bulgaria needs alternative fuel sources and it needs to build a terminal for liquefied gas from Egypt and Qatar", added the president. He added that the pipeline Turkey - Greece should have an extension connecting it with Bulgaria. Both projects can be financed by EU funds and public private partnership, explained Parvanov. PM Stanishev has already raised the issue in a telephone conversation with the president of the European Commission Jose Manuel Barroso.
Source: Standart (08.01.2009)

Ukraine's Naftogaz Insists on Lower Gas Prices, Higher Transit Fees The Ukrainian state-owned company Naftogaz is going to insist on a price of USD 201 for 1 000 cubic meters of Russian natural gas, its President Oleg Dubin said Wednesday as quoted by the BTA. Naftogaz is ready to accept this price which is higher than the USD 179,5 for 1 000 cubic meters of gas that it paid in 2008, but only if Gazprom agrees on a transit fee of USD 2,05 for 1 000 meters of gas as opposed to the present USD 1,7 for 1 000 cubic meters of gas. Dubin also stressed his company wanted to deal directly with Gazprom, and did not want to have the company RosUkrEnergo as an intermediary any more. Gazprom is asking for a price of USD 450 for 1 000 cubic meters of gas after Naftogaz initially rejected its offer of USD 250 for 1 000 cubic meters of gas.
Source: Darik Radio (08.01.2009)

Dubyna: Bulgaria to be First to receive Gas when Supply is Restored When Russia restores the natural gas supply, the first volumes would be sent to Bulgaria, the CEO of the Ukrainian "Naftogaz" Oleh Dubyna stated on Wednesday. The statement, quoted by the Bulgarian information agency BGNES, came as a reply to a question asked by the Bulgarian Member of the European Parliament (MEP) Vladko Panayotov. Panayotov spoke during the meeting of the Foreign Policy Commission at the European Parliament in Brussels. The MEP described the emergency situation in Bulgaria with schools closed over the lack of heat, chilly hospitals, and women, children and elderly people in dire need as in time of war. The Ukrainian CEO explained that the technology time frame required to resume regular gas supply was 36 hours, adding that he hopped that experts could shorten the period.
Source: Standart (09.01.2009)

EU Lends Shoulder to Bulgaria The entire European Union is firmly supporting Bulgaria in the critical situation caused by the halt of the natural gas supplies. In a declaration adopted at an informal meeting of the EU foreign ministers attended among all by Bulgaria's No. 1 diplomat Ivailo Kalfin it was emphasized that the issue equally concerns all EU member states and the EU will not leave any of its citizens in trouble. The participants were unanimous that Bulgaria is most severely hit by the gas supply cutoff. This is the reason why Ivalo Kalfin was the first to take the floor at the meeting. The signees of the declaration appeal to Russia and Ukraine to resume supplies without further delay. The EU is prepared to send independent observers to Ukraine. EUR five billion are allotted for establishing connections between gas consumers, suppliers and transit countries. Bulgaria has two projects aimed at connecting its national energy systems with Greece and Romania. However, the EU may provide financing only under one condition - Bulgaria should be prepared to table them within a month.
Source: Standart (09.01.2009)

EU Says Economic Damage From Gas Cuts Very Significant Europe is suffering "very important" economic damage due to the cuts in Russian gas supplies through Ukraine, a European Comission spokesman said Friday. "It's certainly very important but (there is) no estimation at this point in time," European Commission spokesman for energy issues Ferran Terradellas told journalists when asked about the economic fallout of the cuts. "We will have a clearer picture in the coming days," he added.
Source: Darik Radio (09.01.2009)

No further layoffs are going to take place at Kaolin JSC due tot he cut gs supply after the company discharged 130 workers from Rousse, Varna and Topolovgrad. However, the situation would be managed through forced absences of leave as the production slashed by the gas crisis. Currently, only the mills for quartz sand extraction operate in the region and those for kaolin and chamot have been stopped. Kaolin has started discussing eventual usage of alternative fuel as the management does not expect anything positive from Bulgargaz.
Source: RuseInfo.net (10.01.2009)

Russia to Resume Gas Supply Tomorrow, Europe will take a breath as Russian gas is expected to start flowing towards the Old Continent again. The resumption of Russian supplies was made possible after Ukraine signed a protocol with Russia and EU for accepting international monitors. They will inspect the gas transit through Ukraine, Reuters informed. The agreement was reached late on Saturday after Czech PM Mirek Topolanek, whose country currently holds the rotating EU presidency, had shuttled between Moscow and Kiev. "Russia would resume the gas supplies after the international observers arrive at the locations. This is expected to happen within hours and most probably in 36 hours all European countries would have Russian gas," Topolanek said Saturday. However, Gazprom assured that the supplies might be resumed immediately after the observers arrive and promised that the Balkans would be the first to receive gas. The observers will report to Kiev, Brussels and Moscow. Meanwhile Gazprom stated that the company already suffers severe losses caused by the gas row totaling $120 million daily, 'Vedomosti' daily (Russia) informed yesterday.
Source: Standart (12.01.2009)

Gas from Ukraine Is an Illusion Ukraine won't supply gas to Bulgaria from its own reserve as it was agreed a day before, minister of economy Petar Dimitrov unexpectedly announced yesterday yearly afternoon. On Saturday Bulgaria's President Georgi Parvanov and his Ukrainian counterpart Victor Yushchenko agreed in a telephone conversation Kiev to supply gas to Bulgaria from its own reserves supplying 2 million cubic meters gas daily till the end of the crisis. The proposal of Naftogaz was to transit the gas via Romania. Experts explained yesterday that because of the uncompleted 30-km-long pipeline between Russe and Giurgiu there's no way to pump gas to Bulgaria. The problem is that Ukraine doesn't have the amount needed to fill the pipeline. Over 25 cubic meters of gas are needed, specified minister Dimitrov.
Source: Standart (12.01.2009)

Gaz de France Ready to Supply Bulgaria with Gas through Greece The French Ambassador in Sofia Etienne de Poncins announced Monday Gaz de France was ready to supply Bulgaria with liquefied natural gas through a terminal in Northern Greece. His Excellency pointed out Bulgaria should not rely solely on one gas supplier, and gave as an example France, which used gas from Russia, Norway, and Algeria. In his words, the liquefied natural gas was transported to Northern Greece, and it could easily be transited to building if a connection was built between Bulgaria and the Greek gas network. De Poncins said it was urgent for Bulgaria to be linked to Greece. He reminded that in 2008 Gaz de France and Bulgargaz signed a framework cooperation for agreement, which, however, did not include any details. The Ambassador did point out, however, that GDF was ready to work with Bulgargaz in order to build the necessary pipeline connection. His Excellency spoke at a special press conference during which he announced the program of the French Embassy for the celebrations dedicated to the 20th anniversary since the visit of the French President Francois Mitterand in Bulgaria on January 18-19, 1988.
Source: Darik Radio (13.01.2009)

Bulgaria's PM Urgently Visits Russia Bulgaria's PM flies for Moscow this morning to have talks with his Russian counterpart Vladimir Putin. Putin phoned Stanishev yesterday afternoon and invited him to Moscow. He also told Stanishev that Russia had resumed the supplies of natural gas for Europe but, to his words, gas had not been transited through Ukraine because their transportation system was not functioning. Putin added that Ukraine should take the necessary actions to ensure a proper transit of the Russian natural gas to the European consumers. During his one-day working visit to Moscow Stanishev will be accompanied by Economy and Energy Minister Petar Dimitrov, his deputy, Galina Tosheva, and Bulgarian experts, who will control the transit of Russian natural gas through the territory of Ukraine.
Source: Standart (14.01.2009)

Bulgarian MPs Want to Restart NPP Kozloduy's Reactors All fifteen members of the Energy Committee in the Bulgarian Parliament agreed on the restart of NPP Kozloduy's power units 3 and 4, which were shut down two years ago. Their proposal was supported by their colleagues from the Foreign Affairs Committee and the Committee on Energy Issues. "It is now the time to quote article 36 of Bulgaria's EU Accession treaty, which allows the restart of the nuclear reactors," MPs say. Three independent proposals for the restart of the decommissioned facilities were heard at an extraordinary sitting of the Energy Committee. All members of the Bulgarian Parliament share the opinion that power units 3 and 4 of NPP Kozloduy meet all safety standards of the European Commission and in that they are just as good as any West European facilities of that kind. However, none of the proposals was voted. This will probably happen today, during the regular sitting of the Committee, when Economy and Energy Minister Petar Dimitrov will also be given the floor. Towards the end of the sitting, the members of the Energy Committee agreed that they should make a common proposal for the restart of the shut down reactors 3 and 4 of NPP Kozloduy. Energy Committee Chairman Ramadan Atalay says such a proposal could be voted today and put forward for discussion in Plenary Hall tomorrow.
Source: Standart (14.01.2009)

Greece and Turkey to Help Bulgaria With Gas Bulgaria's southern neighbours Greece and Turkey are ready to help Bulgaria deal with the gas crisis. An agreement with Athens was reached to supply 2 million cubic meters of gas daily, minister of economy Petar Dimitrov announced. Greece's gas supplying system has been connected to Turkey's system, which allows Greece to receive supplies both from Azerbaijan and Russia via "Blue Stream" pipeline. According to minister Dimitrov the gas supplies can be received through the pipeline connecting Russia and Greece via Bulgaria. The amount of 2 million cubic meters is just one sixth of Bulgaria's daily gas needs - 12 million cubic meters on the average. Liquefied gas can be supplied at Revitusa gas station near Athens, added Petar Dimitrov. He has already hold talks with his Greek and Turkish counterparts as Turkey is also ready to help Bulgaria. The financial aspect of the deal between Bulgaria and Greece is still under negotiations. "So, Bulgaria's government is managing well the situation", stated minister Dimitrov.
Source: Standart (16.01.2009)

Plovdiv-based Agria, which is not working from the beginning of 2009 because of the gas crisis, registers BGN 50 thousand loses everyday, said the EO of the enterprise Ståphan Gradinarov, cited by Plovdiv radio. He added that the company starts lagging behind in the implementation of the orders and of the situation doesn't change – the consequences for the enterprise will be disastrous. The management of Agria is already considering a law suit for missed benefits the supplier. The company is directly supplied by Bulgargaz.
Source: news.bg (16.01.2009)

Bulgarian economy loses BGN 140 mln from the gas crisis So far the loses for Bulgarian economy from the lack of gas supply reach BGN 140 mln, data of the Ministry of Economy and Energy show. If the supplies are further reduced, it might be fatal for some companies. So far there is no confirmation that the gas supply will be restored, said Angel Semerdzhiev, executive of Bulgartransgaz. He added that Bulgaria has an alternative source, but the best solution would be if the gas supply through Ukraine is restored. Semerdzhiev explained that the gas would come to Bulgaria in 36 hours, according to Ukrainian experts, but the process might be hastened up.
Source: Insurance.bg (19.01.2009)

Bulgaria Imports Greek Gas Yesterday at 04:00 p.m. gas flowed from Greece to Bulgaria, reported the Bulgarian Ministry of Economy and Energy. The supply started from the Greek station of Strimonohori and the tap was turned in the presence of representatives of Bulgartransgaz and the Greek gas company DEPA. The initially contracted amounts of gas will be increased. The contract was concluded for a supply of gas within a week with the option this period to be lengthened or reduced depending on whether the gas supplies from Russia will start for Bulgaria. The Ministry of Economy cannot still answer how much Bulgaria would pay for the Greek gas. According to informed sources, the price would be higher than that of the Russia gas because the liquefied gas at the world markets is more expensive. Nevertheless the situation would be clear after Bulgargas CEO, Dimitar Gogov returns from Athens where he is to sign the contract with his Greek counterpart from DEPA, Asimakis Papageorgiou.
Source: Standart (20.01.2009)

Russia and Ukraine Sign Gas Transit Agreement Russia and the Ukraine have reached the agreement for the supply of Russian gas to Europe via the Ukraine, the Russian information agencies report Monday afternoon. The agreement has been signed by the CEO of the Russian energy giant "Gazporm" Alexei Miller and his Ukrainian counterpart - the CEO of "Naftogaz" Oleh Dubyna as well as by the Prime Ministers of the two countries - Vladimir Putin for Russia and Yulya Timoshenko for the Ukraine. Putin, quoted by the Russian information agency ITAR-TASS, stated at the meeting's conclusion that "Gazprom" has received an order to begin immediately Russian gas transit trough the Ukraine in all European directions. Timoshenko, on her part, declared that the Ukraine was to begin delivering gas to European consumers right after the first volume reached the pipes in the Ukraine. The European Commission (EC) immediately issued a declaration regarding their reaction to the signing of the Gazprom-Naftogaz gas contract, saying that the EC "notes the signing of a ten year contract between Gazprom and Naftogaz in the presence of Prime Minister Putin and Prime Minister Tymoschenko in Moscow this afternoon." "We now need an indication of the precise time that gas deliveries will be resumed. Our monitors will verify when the gas actually starts to flow," the statement concludes.
Source: Darik Radio (20.01.2009)

Five metallurgical firms lose BGN 20m to gas standoff Five Bulgarian metallurgical companies have amassed a combined loss of BGN 20 million in the fallout of the gas crisis which cut off much of Eastern Europe for two weeks. The news was announced by the association’s chairwoman, Politimi Paunova, upon signing the collective labour agreement for the sector. Precis Inter Holding, Helios Metalurg, ProMet Steel, Bulmet & Co. and Trud have made 100 workers redundant and sent another 1,000 on unpaid leave. Aluminium firm Alcomet also suffered from the dispute between Russia and Ukraine after seeing gas supplies dwindle by over 40%. The damage the economic and the gas crisis have wreaked on the Bulgarian metallurgical sector is yet to be assessed, said Anton Petrov, chairman of the Bulgarian Association of the Metallurgical Industry and board member of Stomana Industry, the Pernik-based steel maker. The biggest challenge before the sector will be restoring customers’ confidence, Petrov added.
Source: Dnevnik (21.01.2009)

Over BGN 169 million losses from the gas crisis The losses, calculated by companies up to the present day, are about BGN 169 263 699. This was announced by the Economy Minister, cited by BTA. These are the direct losses, which different companies incur, the Minister specified. By the end of the day the Crisis headquarters will choose the consumers, which have the greatest need of receiving natural gas. Now the big question is that Russian gas flows in the network, so that we can release bigger quantities to consumers. Gas is most urgently needed in fertilizer and metallurgical factories, Dimitrov added. Among the consumers, who urgently need an increase of deliveries, are the companies "Stomana" (Pernik) and "Agropolichim", as well as some greenhouses and animal farms, in which there is a heating crisis. Dimitrov added that starting tomorrow morning the regime of gas will be changed, so that the industrial consumers in greatest need receive more blue fuel. The Minister specified that for now central heating companies can continue working on black oil, because if natural gas is delivered to them, the needs of the industry will have to be limited, which is not a good idea.
Source: news.bg (21.01.2009)

Direct losses of enterprises due to the cut gas supply for the last two weeks have reached BGN 170 million, minister of economy and energy Petar Dimitrov said. He defined the unprecedented gas crisis as a catastrophe of Bulgarian economy equal to a terrorist act. The most seriously affected sectors are the fertilizers plants, metallurgy and chemical industry. Biovet Peshtera pharmaceutical plant, for example, accumulated EUR 4 million loss due to the stopped gas. At present gas delivery of 2.5 million cubic m per day is guaranteed from Greece. By last night the crisis committee in the Ministry of economy and energy had to make a plan for the supply of the most affected companies. Today Bulgargas bosses are in Turkey to discuss alternative gas supplies and joint projects. Even if the crisis is over, we are obliged to discuss all alternative ways of natural gas supply so that the present situation will never be repeated, Dimitar Gogov, executive director of Bulgargas, commented. In a long-term plan Turkey might become a basic supplier for Bulgaria. The great question that remains even after the gas supplies are restored is: Will business in Bulgaria receive compensations for the losses? It has already become known that no such clauses are included in the contracts with Bulgargas. This fact, however, does not take away the responsibility of Bulgarian government to seek all ways to cover the damages. One way is to get additional amounts of the blue fuel at 4-8% lower price.
Source: Pari (21.01.2009)

The head of Bulgargaz Dimitar Gogov and the Deputy Minister of Economy Galina Tosheva will be a part of the Bulgarian Energy Holding board of directors. Other members of the board will be Dimitar Dimitrov, head of the board of directors of Bulgargaz, Boris Petkov – CEO of the state-owned Radioactive Waste and Tencho Popov, a financial consultant and ex-chief secretary in the Ministry of Finance. Deloitte Bulgaria consulted the officials in the Ministry of Economy during the election of the board members. The board of directors will control, organize and manage all activities of the mega holding.
Source: Novinar (21.01.2009)

Gas crisis costs Bulgaria BGN 170 mln The Bulgarian economy suffered losses in the size of BGN 170 million since the outbreak of the gas crisis until yesterday. The losses have been calculated on the basis of information received at the crisis HQ from the affected companies. Provided that Bulgaria's average consumption of natural gas is about twelve million cubic meters a day, during the gas crisis about 180 million cubic meters of natural gas just failed to reach the consumers in the poorest EU country during the gas dispute between Moscow and Kiev. It is still unclear who is to compensate the Bulgarian companies for their losses. "We received a letter from Gazprom which reads that Kiev is to blame for the gas crisis and we should seek compensations from Ukraine's Naftogaz," said Bulgaria's Economy and Energy Ministry Petar Dimitrov. Naftogaz replied that they had not received such a letter and therefore they declined to comment the question. "We can claim additional supplies of natural gas at an eight-percent discount from the market price," Minister Dimitrov said. "It is uncertain whether Gazprom would agree to a new direct contract, but probably the formula for the prices of the natural gas that we receive from Russia may be reconsidered," Bulgargaz Director Dimitar Gogov said. Claims may also be filed to the suppliers of natural gas. According to PM Sergey Stanishev, the supplies of natural gas from Russia should first be fully restored so that the companies start operating normally and only then could the losses from the gas crisis be accurately calculated. Given that Russian gas reached Bulgaria at 09:05 a.m. yesterday, the calculations can be made within twenty-four hours.
Source: Standart (21.01.2009)

Gas War Binds Balkans Countries Together The gas crisis demolished to pieces one of the most persistent historical myths about the Balkans - that the peninsula is Europe's Powder Keg and populated by morose and wild barbarians. History has its good reasons. In these harsh days, however, when the Balkan countries faced a common problem, they acted in a way that put the rest of Europe to shame. While Brussels was wondering what steps exactly to take, on the 'powder keg" Balkan governments behaved like real Europeans. Despite its own serious economic problems, Hungary helped Serbia with natural gas, in spite of the thousands of years of bitter hatred between the two states. On their part Serbia pumped gas into the mostly Muslim Sarajevo. This gesture came as a positive shock for the local people as they keep too fresh memories of the massacres in Srebrenica and Gorazde. The same holds true for Romania and Bulgaria. Romania offered Bulgaria mazut and Greece forgot about old misunderstandings and differences and signed an urgent gas supply contract at first approach. No matter Greece's gas reserves are not exactly profuse. We shall wish that these kind neighbourly relations would become a practice and the west should stop considering us a second class Europeans.
Source: Standart (21.01.2009)

Fertilizer plant Agropolichim in Devnya may restart production operations on Monday, said CEO Hristo Petrov. He reminded that the plant losses BGN 2.75 mln a day since the start of the gas crisis on January 5. Moreover, there are the forfeits from non-implementation of the contracts, which are yet to be discussed with the customers. That is why Agropolichim will seek compensations from Bulgargaz, the contracted supplier of the blue fuel. According to Hristo Petrov the plant would be able to fulfill its orders but has missed a crucial moment for feeding up the crops. “We had orders for 1000-1200 t of fertilizers a day but we were not able to fulfill them’, he added.
Source: Standart (22.01.2009)

Stomana hopes for lower prices Stomana Industry SA will implement its contracted orders, said Anton Petrov, CEO of the metallurgical company. The losses of the company can hardly be compensated. A moral compensation is more possible and we would be glad if the state, in its role as principal of Bulgargaz, demands it from Gazprom, Mr. Petrov added. For instance, a lower price of the gas supply would be a good compensation for the consumers, he added.
Source: Standart (22.01.2009)

Bulgaria Insists on Cheaper Gas from Russia "Bulgaria will insist on a gas price discount in the price of gas as a compensation for the blocked supplies during the gas row," Bulgaria's PM Sergei Stanishev stated yesterday. A day earlier, Bulgaria's Minister of Economy and Energy, Peter Dimitrov said it was possible that Bulgaria would demand a 8% discount of the gas price. The Director of Bulgargaz, Dimitar Gogov, explained it was hardly possible that Gazprom would agree on signing a direct contract but there was a possibility for a change in the components of the formula which calculated the price of gas. "First of all, it is necessary to make exact calculations of the losses caused by the gas row. The calculations will be presented to the EU, Russia and Ukraine," PM Stanishev explained. According to the calculations made in Bulgartransgaz, due to the crisis, Bulgaria missed to receive over 123 million cubic meters of natural gas from the daughter companies of Gazprom. "We shall make joint efforts with the other affected countries to seek compensations," Stanishev added further. In Stanishev's opinion, the most effective instrument is the common stand of the EU member states.
Source: Standart (22.01.2009)

Ukraine: Sofia should sue the suppliers "Ukraine has not signed any contracts with Bulgaria for the supply of natural gas on the grounds of which it could be brought to court,' Vitaliy Peychev, Press Attache for Ukraine's Ambassador in Sofia Viktor Kalnik, said yesterday. "Bulgaria has no legal grounds to sue Ukraine, because we do not know the countries for which the natural gas that we transport is meant. Gazprom issues all supply orders. You should file claims against the companies with which you have signed contracts for supply of natural gas,' he went further. Mr. Peychev quoted Commissioner for Energy Andris Piebalgs saying that Ukraine has not stolen a single cubic meter of natural gas since January 1 and that Russia's claims that gas disappears in the territory of Ukraine are absolutely groundless.
Source: Standart (22.01.2009)

Bulgaria to Demand Compensations from EU over Gas Crisis "Bulgaria may demand compensations from the EU due to the gas crisis. This will become possible if the losses to Bulgaria's economy due to the cut gas supplies exceed 0.6% from this country's GDP," informed Bulgaria's Minister of Economy and Energy Peter Dimitrov in the Parliament. Minister Dimitrov explained that according to the EU practice in case the losses of a certain EU member state reached such sizes this would mean a crisis. Then, the EU renders a joint help. According to the latest data of the crisis staff with the Ministry of Economy and Energy, so far Bulgaria has calculated losses of nearly 200 million levs. Bulgaria's GDP for 2009 is expected to reach 73.48 billion levs which means that in case the economic losses total 440 million levs, Bulgaria may demand compensations from the EU.
Source: Standart (23.01.2009)

PM Stanishev: Bulgaria needs a clever plan for NPP Kozloduy "Our arguments in favour of the restart of NPP Kozloduy power units 3 and 4 should be presented before the European Commission very cautiously and cleverly," Bulgaria'0s PM Sergey Stanishev said in the town of Rousse on the Danube. To his words, Bulgaria should not leave the EU with the impression that it acting out of spite. Rather, we should take into consideration the clauses and conditions provided in the EU accession treaty. "The analysis of our experts should be very precise, as the European Commissions chief argument is that the gas crisis is over. However, it is equally true that the Russia-Ukraine relations are quite unstable, despite the agreement that the two countries signed," Mr. Stanishev said. "And it is this instability that gives the Bulgarian government a reason to request a temporary restart of Kozloduy nuke's decommissioned power units," he went on.
Source: Standart (26.01.2009)

Gas Crisis Makes Nabucco Project Popular The gas crisis has made the Nabucco pipeline project extremely popular. The row between Ukraine and Russia left half of Europe without natural gas and the interest in the project that is meant to make the European citizens less dependent on Gazprom's mercy has grown. Representatives of all countries through which the pipeline is planned to pass - Bulgaria, Turkey, Romania, Hungary and Germany, which joined last, as well as representatives of the companies that are partners in the Nabucco Gas Pipeline International GmbH Consortium - Bulgargaz, BOTAS, Transgaz, MOL, OMW and RWE - have gathered in Budapest. Today they will discuss options to speed up the implementation of the pipeline project, which is expected to cost about ten billion euro and will have an annual throughput capacity of up to 31 billion cubic meters of natural gas. The pipeline will be three thousand kilometers long, four hundred of which will be in the territory of Bulgaria, and will supply natural gas to Southeast and Central Europe.
Source: Standart (27.01.2009)

EU Says 'No' to Nabucco Financing The European Union does not consider financing the Nabucco pipeline project. Reuters quotes European Energy Commissioner Andris Piebalgs saying that the European Union should not consider providing the Nabucco gas pipeline capital financing but it could provide loans and guarantees. Reportedly, this became clear at the conference in Budapest, attended by Bulgaria?s PM Sergey Stanishev. According to a publication, the European Investment Bank is ready to consider a financial contribution to the Nabucco project in the size of a quarter of its total cost. The author quotes a statement that EIB Director Philippe Maystadt made at the forum in Budapest. To be granted a loan, however, the project should meet all technological, political and economic criteria, and Mr. Maystadt also requires an intergovernmental agreement. Reportedly, EBRD has also shown interest in financing Nabucco. 'Nabucco gained considerable importance after the gas crisis. It will provide an alternative to the gas supplies from Russia, connecting Europe to the natural gas producers in the Caspian region and the Middle East,' PM Stanishev said at the forum.
Source: Standart (28.01.2009)

Bulgaria Expects 1 B cum of Gas from Azerbaijan Some 1 billion cubic meters of gas coming from Azerbaijan may start flowing into Bulgaria from next year, Bulgaria's PM Sergei Stanishev and the President of Azerbaijan Ilham Aliev agreed upon. As of the next week, the gas companies of the two countries will start additional negotiations. Gas from Azerbaijan may be supplied to Bulgarian and Greece even this year in case an agreement for transit is reached with Turkey. Tuesday evening, the project for linking Bulgaria's gas transit network with those of Greece and Romania, received a substantial support during the sitting of the Council on General Affairs and External Relations with the EU. Thus, the project may be financed with part of the 5 billion euro with which the EU intends to compensate the aftermath of the financial crisis within the Union.
Source: Standart (28.01.2009)

Bulgaria Gets E20 M to Build Gas Link to Greece The European Commission will grant 20 million euros to Bulgaria to link its pipeline system with that of Greece. The decision was taken at the yesterday's Commission session. The money should be enough to lay pipes along the Haskovo-Komotini route. Another promise Brussels made was funding a gas link between Bulgaria and Romania following a statement by EU Consumer Protection Commissioner Meglena Kuneva. Energy Commissioner Andris Piebalgs took the commitment to secure funds for the project. The cost is yet to be estimated. Asked why Bulgaria and Slovakia, who suffered the worst in the gas conflict between Ukraine and Russia, would receive the smallest amounts, an EC spokesperson said that one of the criteria to allot the money was the beneficiaries' readiness to start implementing their projects immediately, viz. this year.
Source: Insurance.bg (29.01.2009)

No clauses for gas compensations for Bulgaria This is clearly stated in the additional agreement signed at the end of 2006 between Overgas and Bulgargas, worked out by ex-minister of energy Rumen Ovcharov. The quantity in question is over 1.4 billion cubic m annually, which the country has received since 2007. This means that the existing clauses for 4% or 8% discount in the price, which the country hoped to get, are not valid for these quantities. Overgas denied this information without presenting any facts to prove the opposite. The quantities mentioned are the greater part of the total 2.5 billion cubic m per year of Overgas supplies. According to an additional agreement signed in May 2007, the quantities decrease until 2010 from 6.600 billion cubic m to 2.5 billion cubic m including the gas on preferential price, which by 2012 should reach market values. It is these 1.4 billion cubic m gas, which Bulgaria received at preferential price that cost USD 305.68 per 1,000 cubic m for the fourth quarter of 2008, Pari daily learned. The remaining part to 2.5 billion cubic m cost USD 503.79 per 1,000 cubic m. In its corrective statement Overgas says that natural gas price is USD 321, which in fact is the average figure and it by no means refutes the data published in yesterday’s issue of Pari daily.
Source: Pari (29.01.2009)

T his is clearly stated in the additional agreement signed at the end of 2006 between Overgas and Bulgargas, worked out by ex-minister of energy Rumen Ovcharov. The quantity in question is over 1.4 billion cubic m annually, which the country has received since 2007. This means that the existing clauses for 4% or 8% discount in the price, which the country hoped to get, are not valid for these quantities. Overgas denied this information without presenting any facts to prove the opposite. The quantities mentioned are the greater part of the total 2.5 billion cubic m per year of Overgas supplies. According to an additional agreement signed in May 2007, the quantities decrease until 2010 from 6.600 billion cubic m to 2.5 billion cubic m including the gas on preferential price, which by 2012 should reach market values. It is these 1.4 billion cubic m gas, which Bulgaria received at preferential price that cost USD 305.68 per 1,000 cubic m for the fourth quarter of 2008, Pari daily learned. The remaining part to 2.5 billion cubic m cost USD 503.79 per 1,000 cubic m. In its corrective statement Overgas says that natural gas price is USD 321, which in fact is the average figure and it by no means refutes the data published in yesterday’s issue of Pari daily.
Source: Pari (30.01.2009)

Bulgaria's President: We Insists on No Contracts with Mediators "During his visit to Moscow, President Georgi Parvanov will insist on a new contract with Gazprom," Bulgargaz CEO Dimitar Gogov said. Gogov added that Parvanov would directly refer Bulgaria's demands to Gazprom Vice President Alexander Medvedev. "President Parvanov will require supply from Gazpromexport alone, as it is the only company directly related to Gazprom. Currently, Bulgargaz has contracts with two other mediators Overgas Inc. and Wintershall. We'd also demand a better-guaranteed supply, just as we provide bank guarantees for our future payments. Thirdly, we'd insist on a contract that would expire in at least ten years," Gogov explained. Bulgaragaz has lost BGN 110 million over the January gas conflict between Ukraine and Russia. "We have notified the Ministry of Economy and Energy's ad hoc committee on the gas crisis of the figure," Gogov announced. The company has incurred direct losses for USD 20 million out of unsupplied quantities as well as another BGN 80-million losses out of future earnings. Bulgargaz will hold that the unsupplied quantities be delivered in the future at better financial conditions. The company is also due to notify every one of its three suppliers - Overgas, Gazpromexport and WIEE-Zug - of its claims.
Source: Standart (04.02.2009)

Bulgaria will insist on direct contract for gas supply with Gaspromexport during the official visit of Bulgarian president in Russia, executive director of Bulgargas Dimitar Gogov announced. For the first time in ten years, Bulgargas expects loss of BGN 120 million for 2008. By end of January, debt to the company reached BGN 470 million, the highest debtors being Sofia Toplofikaciya with BGN 327 million and Kremikovtzi with BGN 78 million.
Source: Pari (04.02.2009)

Bulgaria to Negotiate Transit of Asian Gas with Russia Bulgaria will insist before Russia that pipelines of 'Gazprom" be used to transfer fuel from Asia, a member of the delegation accompanying Bulgaria's President Georgi Parvanov on his visit to Russia said. The negotiations will be on the transit of 1 billion cubic meters gas that Bulgaria has already negotiated with Azerbaijan, Turkmenistan and Uzbekistan. The former Soviet republics stipulated that Bulgaria had to negotiate the transit with Russia. Bulgaria will ask for gas compensations due to the gas crisis, caused by the suspended gas supply in January.
Source: Standart (04.02.2009)

Moscow Feels Twinges of Guilt about Bulgaria The Russian-Ukrainian gas conflict that had affected Bulgaria has changed the 'ceremonial' agenda of president Parvanov's visit to Russia. A source from the Kremlin emphasized that Moscow "would rather not jeopardize the particularly friendly relations with Sofia because of the January events." It seems that the Russian part feels twinges of guilt about Sofia and it might be helpful to the Bulgarian delegation in the negotiations on obtaining some concessions. Based on Russia's example, Bulgaria has been considering the possibility to get rid of the mediator companies 'Wintershall' and especially 'Overgas Inc' ('Gazprom' owns shares in both companies). According to the Kremlin source, Russian authorities do not oppose the direct gas supply "if 'Gazprom' and 'Bulgargas' agree on the commercial conditions." Meanwhile it is obvious that the Russian monopolist is not ready to give up the mediators. Most probably 'Gazprom' would avoid financial compensations and would prefer additional gas supply for the consumers and for the emptied gas depots of "Bulgargas'. However, authorities in Sofia count on complete reconsidering of the gas supply plan, harmonized in 2006, within the framework of the political dialog.
Source: Standart (05.02.2009)

Bulgarian Energy Holding posts BGN 154m pre-tax profit Bulgarian Energy Holding, the mega structure bundling the country’s major energy assets, booked a pre-tax profit of BGN 154 million for 2008, under preliminary data. The main contributors were the state-controlled power company NEK, coal-fired power plant Maritsa East 2 and nuclear plant Kozloduy. Another shot in the arm were the higher electricity prices. The structure, which was set up last summer, brings together the country’s biggest coal-fired power plant, the state-owned Maritsa East 2, coal miner Maritsa East, Kozloduy nuclear plant, state-run gas distributor Bulgargaz, Bulgartransgaz, telecom services provider Bulgartel, national power grid operator NEK and the Electricity System Operator. BEH said it expected profit will increase to BGN 471 million in 2009, and revenue will gain BGN 292 million to BGN 5.9 billion. The structure’s long-term bank debt totaled BGN 1.7 billion, but new loans will be sought to back a BGN 2 billion investment plan. Bulgargaz swung to a loss of BGN 118 million from a pre-tax profit of BGN 90 million in the previous year, blaming high gas prices and costly delieveries from Gazprom. Kozloduy NPP turned out to be the gem in the structure, posting a record-shattering profit of BGN 81 million against a BGN 27 million target. The growth was driven by buoyant sales on the deregulated market, where the plant sells 40% of its output.
Source: Dnevnik (05.02.2009)

Kremlin moots buy of Bulgaria Overgas stake Gazprom weighing a proposal to buy all or some of Bulgargaz’ stake in Overgas Inc, one of the firms that ship gas to Bulgaria, reported Russian daily Vremya Novostei, quoting an unnamed Kremlin source. Gazprom vice-president Alexander Medvedev, who also heads Overgas’ board of directors, hinted at a possible deal at a Sofia visit two weeks ago. Gazprom and Gazpromexport hold a combined share of 50% of Overgas Inc’s capital, the remainder in the hands of private investors grouped in Overgas Holding. London-based DDI Holdings Limited is majority shareholder in the holding company with a 98.1% stake. Executive director Sasho Donchev has s 0.37% interest, and the rest is equally split between Nikolov Invest SPJSC and Ivan Todorov, accorording to the commercial register.
Source: Dnevnik (05.02.2009)

Parvanov Negotiates Gas Supplies without Intermediaries Bulgaria's gas company Bulgargaz will be supplied with Russian natural gas without intermediaries. This was negotiated yesterday in the Kremlin between Bulgarian President Georgi Parvanov and his Russian counterpart Dmitry Medvedev. The two talked for about an hour and a half, far longer than initially scheduled. Medvedev and Parvanov also agreed to speed up the South Stream pipeline project. To Mr. Medvedev's words, the pipeline's throughput capacity may also be increased. 'Bulgaria has always worked hard and will continue working towards the implementation of this project,' Mr. Parvanov said. He underscored that the Nabucco pipeline project that is to be realized in cooperation with the EU, was also of equal importance. The two heads of state agreed that guarantees that the gas crisis will not repeat itself are needed. Mr. Medvedev proposed two options against future gas problems, the first involving the establishment of international legislation aimed at preventing a future halt in the gas supplies, and the second involves diversification of the gas routes to Europe. Mr. Parvanov expressed his satisfaction with the talks, adding that the problems can be solved at an international forum on energy issues, scheduled to take place in Sofia at the end of April. Mr. Medvedev said once again that the construction of NPP Belene was of great importance and added that the project would be completed on time.
Source: Standart (06.02.2009)

Medvedev: Bulgaria should ask compensations from Ukraine Russia's President Dmitry Medvedev agreed Bulgaria had been worst affected by the gas crisis. "The whole blame for the suspended gas supply falls on Ukraine and due to this financial compensations should be sought from Ukraine," President Medvedev stated. Medvedev added that Russia would strictly follow the observation of the new contract with Ukraine.
Source: Standart (06.02.2009)

Gas Price to Fall by 12 percent 'Bulgargas' proposes the price of natural gas to drop by nearly 12 per cent as of April 1. "The decrease will be 11,56% which means that from $399 per 1000 cubic meters it will drop to $338," Bulgaria's minister of economy and energy Petar Dimitrov announced. Later the Bulgarian gas company also announced the proposed new price. The proposal will be submitted to the State Energy and Water Regulatory Commission on March 11. 'Bulgargas' explained that in case of market changes there might be a different price at that time. The drop in gas price will let Bulgarian enterprises and power plants that suffered substantial losses from the economic and gas crisis, to take a breath. However, prices of central heating will hardly fall before the end of the season. "We are still expecting Russia's, and, in particular, 'Gazprom's decision on the possible compensations for the suspended gas supplies in January. We are expecting compensations for Bulgaria's real economy that suffered losses from the gas crisis besides the undelivered amounts of gas on a lower price," added minister Dimitrov.
Source: Standart (10.02.2009)

Gas Pipeline to Connect Bulgaria and Greece The preliminary work on a project for a gas pipeline meant to connect Bulgaria with Greece gas transit system is scheduled to begin in three month?s time. The news has been spread by the town administration of Kurdzhali in southern Bulgaria. The results of the analyses should be announced by October. The total cost of the project has not been calculated yet, but it is expected to reach 100 or 120 million euro. The preliminary works involve mapping out the pipeline?s technical parameters and estimating its possible impact on the environment. The pipeline will be 150 km long, 125 of which will pass through Bulgarian territory. The pipeline is planned to begin at the Greek town of Komotini, passing through the Bulgarian towns of Momchilgrad, Kurdzhali and Haskovo, and end in the town of Dimitrovgrad. The executor of the preliminary research work is to be selected by a public tender, sources from the Bulgarian Energy Holding said.
Source: Standart (10.02.2009)

Russia Eager to Possess Bulgarian Gas Transport Network "Bulgaria explicitly disagrees with the notion the South Stream gas to be transported via the existing gas transportation system in Bulgaria," the Minister said at a public discussion of the state energy strategy to 2020. "We consider the future pipeline as an alternative route to the currently existing one," Bulgaria's Minister of Economy and Energy, Petar Dimitrov, said. Minister expressed disappointment that the pipeline route under the Black Sea to Bulgaria was not specified. "This must have happened during the visit of President Parvanov in Moscow from February 4 to 6th. Reportedly the Russians wanted to increase the transited amounts of gas. This, though, would totally waste the transport systems in Bulgaria," Petar Dimitrov explained. The Russian access to the Bulgarian pipes via South Stream would allow Gazprom implement its long-cherished intent to gain possession over the Bulgarian pipes, experts commented. The project envisages that both parties in the Bulgarian-Russian joint venture would possess 50% of the pipes. For the time being the company has not been established because of discords on the choice of contractor for the pre-project survey, Dimitrov explained.
Source: Standart (12.02.2009)

World Bank says willing to support Nabucco The World Bank said on Wednesday it is willing to give financial support to the Nabucco natural gas pipeline project if agreement over gas-sourcing was reached between consortium members and gas-supplying countries. The Nabucco line was conceived as a way to bring energy supplies to Europe while bypassing Russia, but problems such as funding, sources for natural gas and lack of agreement between the Nabucco consortium members have plagued the project. "If Europe and Turkey and gas supplying countries can come to a final agreement to allow the World Bank to enter, we are open to financial support," World Bank Turkey Director Ulrich Zachau said. "This is dependent on the countries involved," he added. Turkey has also been accused of foot-dragging by analysts as Ankara wants a portion of the gas flowing through the pipeline for its own domestic use. The demand has led to discord among consortium members, which include Austria's OMV, Hungary's MOL, Romania's Transgaz, Bulgaria's Bulgargaz, Turkey's Botas and Germany's RWE.
Source: econ.bg (12.02.2009)

Burgas-Alexandroupolis oil pipe faces one-year delay Groundbreaking on the Burgas-Alexandroupolis oil pipeline will be put off by a year over a delay in the development of the Kashagan field in Kazakhstan and disagreements between Bulgaria, Greece and Russia, Gazeta.ru reported. Speaking to Dnevnik, Stefan Gunchev, board chair of the Bulgarian project company, said building works were scheduled to begin this year, with the design due by end-July and the environmental impact assessment expected in the next year. The project is going by schedule at the moment, he added. Bulgaria holds 24.5% in the oil pipeline project through state-run companies Technoexportstroy and Bulgargaz. A further 24.5% stake belongs to Greece, with the remainder controlled by Russia. Russian analysts pointed to the ongoing financial crisis as one factor for the delay, but added another portion of the blame should be laid at the door of oil companies, which failed to assess the complexity of the project. Despite its geopolitical importance, the Burgas-Alexandroupolis is not high on Russia’s to-do list. Moreover, the pipe’s future operator, Transneft, is focused on Eastern Siberia and the Baltic Pipeline System-2, which will carry 50 million of oil annually from West Siberia to the Gulf of Finland.
Source: Dnevnik (13.02.2009)

Bulgaria may require EUR 40 million for the expansion of the gas storage in Chiren, announced the Minister of Economy and Energy Petar Dimitrov. However, the Minister explained that there is still no official decision about it. In his opinion the total investment, needed for the complete expansion amounts to EUR 250 million. Petar Dimitrov further explained that the resources are needed to increase the storage capacity as well as to reach daily production equal to the daily consumption of Bulgaria.
Source: Darik Radio (23.02.2009)

Bulgaria may face gas crunch in 2010 Bulgaria could suffer a gas shortage in 2010 unless it agrees new volumes from Gazprom and reworks its supply contract, Energy Minister Petar Dimitrov told the energy conference Security, Liberalisation and Climate held by Capital weekly and Business and Ecology magazine. In 2006 Bulgaria negotiated a little over 3 billion cubic metres of gas annually for the time until Russia starts pumping into the South Stream pipeline. After 2010 Bulgaria will quench its thirst for gas through the Nabucco and South Stream pipes. According to its new energy strategy, the country should derive 34% of its energy from renewable sources by 2030 and 7% from LNG terminals that are yet to be built. January’s gas crisis might repeat itself, but on a smaller scale, Dimitrov predicted.
Source: Dnevnik (25.02.2009)

Bulgaria Requests Aid From Brussels over the Gas Crisis Bulgaria would continue insisting before the European Parliament to reconsider its decision that Bulgaria should receive only 20 million euro out of the 5 billion euro provided as compensations to the consequences of the gas crisis in January. This was announced by MEP Iliyana Yotova. According to her, it is not fair that Bulgaria receives that small compensation as this country was worst affected by the crisis.
Source: Standart (25.02.2009)

Italians to Build the Gas Pipeline Link The Italian Edison S.p.A will partake in the Komotini-Dimitrovgrad gas pipeline implementation. The news came following Bulgarian President Georgi Parvanov’s meeting with Italy’s PM Silvio Berlusconi. Despite the death of Berlusconi’s sister Maria Antonietta, Berlusconi and Parvanov had an hour-and-a half-long lunch. “We discussed Edison’s interest in the building of the Komotini-Dimitrovgrad section, which is very important to Bulgaria,” Parvanov told journalists after the conversation. He also said he was happy that Italy’s business community was reconfirming their interest in Bulgaria. “The crisis has not yet decreased Italy’s investments in Bulgaria. They even tend to increase,” Bulgaria’s Head of State added.
Source: Standart (27.02.2009)

Energy Minister: Bulgaria Fully Prepared for Eventual Gas Crisis Bulgaria's Energy and Economy Minister, Petar Dimitrov, assured Bulgarians Saturday that the country was fully prepared for an eventual gas crisis and would not end up in the January dire situation. Dimitrov, who spoke in a special interview for Darik radio, confirmed a new gas crisis was not to be expected, at least for March, after the Ukraine made payments to Russia for all overdue amounts for gas deliveries. The Minister reminded that Bulgaria now had contracts with Greece for the supply of 2 M cubic meters of gas and with Turkey - for 0,5 M cubic meters per day, adding that the supply process itself could be completed in a matter of hours. Dimitrov further pointed out that the country was still in technology negotiations regarding gas connections with Greece and Romania.
Source: Darik Radio (09.03.2009)

The last volumes of gas which will compensate the lack of fuel from January 6 to January 21 will be delivered the following days, announced CEO of Overgas Inc. Sasho Donchev. "This means that we have fulfilled our commitment to Bulgargas within three months to supply the nonsupplied amount of gas during the gas crisis", he explained. "We are not faced with the question of compensations," said the CEO of Overgas. He added that the company had not received any letter with a claim for compensation of losses and the lost benefits of Bulgargas because of the gas crisis. Donchev said that the recently observed pressure from the state for concessions for certain social groups contravenes with the Law on Competition. He said that concessions could be made only to consumers who regularly pay. According to him, the prices in Bulgaria are managed by the Minister of Economy and Energy.
Source: Sega (11.03.2009)

Bulgarian Bulgargaz Offers 10% Lower Prices The Bulgarian gas supply company Bulgargaz has proposed State Commission for Energy and Water Regulation to lower the natural gas prices by 10.53%. Bulgargaz demands a price of BGN 549.96 per 1000 m3 (no value added tax included), which is BGN 64.7 per 1000 m3 less, compared to the current price. The reason for the price cut is the lower prices of the alternative to natural gas fuels on the international markets. A month ago Bulgargaz announced that it would lower the prices by 12%, but due to the higher USD exchange rate, an increase was needed.
Source: Standart (11.03.2009)

Overgas Inc owes no discount for undelivered amounts of gas during the crisis in January 2009, the executive director of the company Sasho Donchev stated. We provided additional amounts for the quarter with which we will fulfil the order from Bulgargas. The executive director of Bulgargas Dimitar Gogov answered that the first quarter of 2009 has not ended yet and he has no information whether Overgas has observed the duties of the agreement. In my opinion, this does not correspond to the truth. But he admitted that it receives greater amounts for the Chiren gas storage facility. Discounts for the undelivered gas quantities were the only possibility for Bulgargas to get compensations. The total amount of gas not provided during the gas crisis was 123 million cubic m, which amount to some USD 4.3 million. In order to get the funds, Gogov had stated that Bulgargas would not ask Overgas to make up for the undelivered quantities to be able to buy them with the discount. Discounts and not-received quantities were not discussed with the other two suppliers, Gazpromexport and Wintershall. To avoid speculations with gas prices, we would like to make the calculation public, Donchev said. The opinion of Kiril Domuschiev from Biovet expressed for Pari daily is that mediators like Overgas lead to additional rise of the price.
Source: Pari (11.03.2009)

I hope we will reanimate Kremikovtzi steel mill 'I hope we will reanimate Kremikovtzi steel mill so not to have such dramatic picture. Talks with Brazilian company CSN are underway.' This is what Minister of Economy and Energy Petar Dimitrov said. He said the Trade Unions the deal with CSN was supposed to be clear in January. Bulgaria has to decide whether to have Kremikovtzi after the crisis, Dimitrov said. He added prognosis for the end of the global financial and economic crisis are moving to 2010. Kremikovtzi has no unpaid dept to foreign companies. The only companies to which the steel mill has not paid its dept are Bulgargaz and the National Electric Company.
Source: Agency Focus (11.03.2009)

The gas pipeline South Stream will run in 2015, said the Russian Prime Minister Vladimir Putin. In June last year the Russians said categorically that there would be no delays and the project would be ready in 2013-2014. The value of the pipeline will be about EUR 10 billion. There will be no problems with financing and provision of the necessary volumes of gas, as Moscow has enough fuel for the European consumers for the coming 100 years, Putin said. According to the director of the Russian Gazprom Alexey Miler South Stream has no competition. The pipeline will provide gas from Russia to the countries of Western Europe, as the facility will pass on the bottom of the Black Sea.
Source: Novinar (12.03.2009)

Nabucco Pipeline Removed from EU Priority List The Nabucco gas pipeline project to pump natural gas from Central Asia to Europe transiting Bulgaria has been removed from a European Union list of priority projects. The EU had initially planned to allocate EUR 250 M to finance the project, but later the funds were cut to EUR 50 M, Russian news agency Novosti reported Tuesday. The USD 10 B Nabucco pipeline, backed by the European Union and the US, is intended to link energy-rich Central Asia to Europe through Azerbaijan, Georgia, Turkey, Bulgaria, Romania, Hungary and Austria, bypassing Russia and Ukraine. Construction has been tentatively scheduled to begin in 2010. The Nabucco project is seen as a rival to Russia's South Stream gas pipeline designed to annually pump 31 billion cubic meters of Central Asian and Russian gas to the Balkans and on to other European countries. The project involves Bulgaria, Serbia, Hungary, Italy and Greece. Russia's transit disputes with its former Soviet neighbors have raised concerns in Europe about too much energy dependence on Russia. Russia cut off gas supplies to Ukraine on January 1 after failing to reach a deal over debt and prices for 2009 in late December, and later halted gas deliveries to Europe, saying Ukraine was stealing transit gas.
Source: Capital (18.03.2009)

Gas Field Discovered in Northern Bulgaria "Bulgaria can extract natural gas from the newly discovered field by the village of Deventsi, northern Bulgaria for the coming six or seven years," energy expert, Prof Atanas Tassev told The Standart. According to geologists, the field holds about 6.6 billion cubic metres of gas. Tassev believes the extraction capacity of the field will be about 500 million cubic metres a year but in extraordinary situations, like gas supply crisis, for instance, the volume can be increased. Besides after gas is pumped out the deposit can be used as a storage facility taking in about five billion cubic metres of gas. Such a capacity will be considerably greater than the Chiren gas storage facility, which can hold no more than 1 or 1.2 billion cubic metres of gas. Deventsi and Chiren together will provide Bulgaria with storage facilities almost as big as those of Ukraine, Tassev believes, definitely something that would help Bulgaria become a stabilizing factor for gas supply in the region.
Source: Standart (20.03.2009)

Gas prices to go down by 11% from April Gas prices in Bulgaria will be cut by 11.18% as of April instead of the 10.52% put forward by state-run utility Bulgargaz, the energy watchdog proposed in a new report. The price cut will be discussed on Tuesday together with the new heating utility tariffs. Chairman Konstantin Shushulov said earlier this week that gas prices will fall by 14% if Bulgargaz gave up the 3% mark-up laid down in the price ordinance. Sources told Dnevnik that Shushulov and energy minister Petar Dimitrov have agreed that removing the mark-up would negatively impact the gas supplier. The company laid the blame for its BGN 118 million loss last year at the door of the energy regulator, which has the final say on prices. The gas firm initially said it will seek a decrease of BGN 71 per 1,000 cubic metres but then submitted a proposal for a BGN 64.70 reduction to BGN 549.96.
Source: Dnevnik (20.03.2009)

Gas price will drop by 11.18% as of April 1, became clear at a discussion at State Energy and Water Regulatory Commission. In the opinion of its president, in July the price is expected to fall even more to under BGN 360 per 1,000 cubic m. Another 10-15% dip will be introduced as of October. Price of energy from all kinds of renewable sources (water and wind power stations, bio-mass, and sun energy) will rise from April 1.
Source: Pari (25.03.2009)

Bulgaria Watchdog Lowers Gas, Heating Prices Bulgaria's Energy and Water Regulator confirmed natural gas and central heating price reductions. The gas price is going down by 11,18% or BGN 69 per 1000 cubic meters compared to the first quarter of 2009. The state owned gas supply company Bulgargaz will sell gas in the next tree months to end suppliers and consumers at BGN 545,97 per 1000 cubic meters (no VAT included). There will be additional reductions of gas prices in July and October 2009, the Head of the State Commission for Energy and Water Regulation, Konstantin Shushulov, announced. Bulgargaz has been asked to submit their future prices' forecast by the end of the week. In addition to gas prices, the Regulator lowered prices of central heating by a range of 5% to 8%.
Source: Standart (25.03.2009)

Nabucco starts in 2014 with 12 milliard cub.m. gas Reinhard Mitchek, Executive Director of the Nabucco project, announced the pipeline will be operational as of 2014. The first quantities of natural gas that will flow trough it will amount between 8 and 12 billion cub.m and will come from Azerbaijan, Mitchek said. The shareholders – OMV, Bulgargaz, MOL, Transgaz, BOTAS and RWE will be the first to transit gas trough Nabucco. Only 50% of the pipeline’s capacity will be at their disposal. Mitchek informed, that Gazprom will also have the opportunity to transport gas trough Nabucco. According to him, Russia and Russian gas were very important for Europe. Even so, he emphasized on the establishment of alternative routes for gas transit that would guarantee intense competition and market liquidity.
Source: Novinar (30.03.2009)

The danger for a range of heating plants in Bulgaria to remain without gas supply is very real. This said the chairman of the Association of the heating plants companies Valentin Terziiski. What is to happen on 2nd April is suspension of the natural gas supply after the State Committee on Energy and Water Regulation issued a prescription to Bulgargas to stop the gas supply for the enterprises, which do not pay their obligations. The watchdog’ list of the debtors includes Heat Supply-Sofia, Heat Supply-Burgas, Heat Supply-Pleven, Heat Supply-Veliko Tarnovo, Heat Supply-Vratsa, Heat Supply-Shumen as well as the metallurgic enterprise Kremikovtzi.
Source: 24 chasa (01.04.2009)

Steel mill Kremikovtzi on the verge of shutdown The Bulgarian state is searching for an alternative to rescue its ailing steel maker Kremikovtzi after Brazilian mining and metallurgical giant CSN did not sign a trade agreement, the economic ministry said. Stressing there has not been any official announcement that the Brazilian company has scrapped investment plans, the ministry gave it an ultimatum to accept a partnership by the end of Tuesday or else gas flows to the steelmaker will dry up. The management of the insolvent plant said they have sent the Brazilian investor a new contract accepting all the terms and conditions proposed. Kremikovtzi agreed to sell coke at an unfavourable price with a view to saving the coke production capacities, one of the company’s directors said. The draft contract was sent on Friday and discussed by the two parties later that day in a conference call and then again on Monday evening, but CSN “were beating around the bush”, he added. The Bulgarian steel mill pinned its hopes on the trade agreement to pump cash until a rescue plan is adopted and reduce its mounting losses as it continues to gorge on gas without producing. Bloomberg reported yesterday that CSN has abandoned its intentions to acquire Kremikovtzi, citing the company’s chief financial officer Otavio Lazcano, who did not specify whether this is a final decision. The Bulgarian energy and economy ministry has repeatedly said gas is being pumped into the mill only to keep the production capacities going until the new owner steps in. The ministry is determined to stop gas supplies in case of a withdrawal. Minister Petar Dimitrov said yesterday gas deliveries to the Bulgarian steelmaker have been rationed down and will come to an end today at the decision of the energy watchdog SEWRC. Chairman Konstantin Shushulov said last year’s audit found that some companies do not pay the supplier and it is not clear how it will collect its dues. Sources close to the matter suggested that could be only a bluff to spur the Brazilian company to action.
Source: Dnevnik (01.04.2009)

Kremikovtzi Wastes Natural Gas for BGN 236,000 a Day The debts of Kremikovtzi to the state-owned companies Bulgargaz, BDZ and NEC have reached BGN 300 million and they are growing every day. Keeping the plant alive is like flogging a long dead horse, economists say. If we finally let it die, the money of the Bulgarian taxpayers will stop sinking in the black hole called Kremikovtzi. Kremikovtzi’s debts amount to at least BGN 2.2 billion, the creditors say. The plant’s debts to the bondholders amount to EUR 325 million, plus the money that Kremikovtzi owes its suppliers, workers and the National Social Security Institute. Recent calculations show that natural gas for 235,857 burns every day in the furnaces of the dying plant. Kremikovtzi’s debts to Bulgargaz have grossed BGN 100 million. Economy and Energy Minister Petar Dimitrov said that the supply of natural gas to Kremikovtzi would be cut off with a decision of the State Energy and Water regulatory commission. In addition, Kremikovtzi owes the National Electric Company BGN 140 million and its debt to the state railway carrier BDZ amount to over BGN 21 million.
Source: Standart (02.04.2009)

Bulgaria to press for new South Stream gas grid Bulgaria is sticking to its case that the South Stream natural gas pipeline should use a new transmission network instead of the existing infrastructure, deputy energy minister Yavor Kuyumdjiev told the Bulgarian National Radio. The project will be reviewed during the visit of Bulgarian prime minister Sergei Stanishev to Moscow on April 26-28, when he will meet with president Dmitry Medvedev and prime minister Vladimir Putin. The visit is expected to see parties seal the gas route agreement, according to Kuyumdjiev. Bulgarian energy minister Petar Dimitrov said in February that using the existing gas transmission grid to pump gas from Russia to Europe would affect Russian gas transits to Greece, Turkey and Macedonia and rule out options for alternative supplies. In addition, he argued this would require expansion of the capacity of the existing network. Once the framework agreement has been signed, the Bulgarian Energy Holding, which groups the country’s main state-owned energy assets, and gas major Bulgargaz will set up a 50-50 project company, giving the Russian ownership on the pipelines.
Source: Dnevnik (06.04.2009)

The Bulgarian Energy Holding (BEH), the catch-all mega structure of key state-run energy assets, has acquired around BGN 215 million of the BGN 328 million total debt of the Sofia heating utility to gas retailer Bulgargaz, a source close to the deal said. Last year the Bulgarian government allocated BGN 215 million to helping the utility get back on its feet. Toplofikatsia Sofia has current gas liabilities of some BGN 140-150 million. Last week the supplier threatened the utility it would turn the tap unless it pays down its debts, prompting it to give it some BGN 38 million. Last year a separate BGN 110 million was moved to a deferred payment scheme over a five-year period. The acquisition practically makes BEH a shareholder in Toplofikatsia Sofia. BEH executive director Galina Tosheva confirmed the deal has been signed and the company was now awaiting energy minister Petar Dimitrov’s decision on its participation in the utility.
Source: Dnevnik (06.04.2009)

Sofia Asks Moscow for a New Gas Pipeline Sofia has asked Moscow to build a parallel South Stream pipeline to transit the natural gas to Western Europe. Thus, Bulgaria’s internal gas transportation network will not be used to carry the fuel. This transpired from an interview of Deputy Minister of Economy and Energy Yavor Kuyumdzhiev. He said Sofia was firmly against Moscow’s proposal to use the pipeline system of BulgarTransGas to carry the South Stream fuel to Europe. An intergovernmental agreement on the issue is expected to be signed during the energy summit in Sofia on April 24-25 or a day later, when PM Sergey Stanishev leaves for Moscow.
Source: Standart (06.04.2009)

Bulgarian Kremikovtzi Gas Cut Delayed by Week State gas monopoly Bulgargaz said on Monday it would not cut gas supplies to Kremikovtzi for one more week, the steel mill executive director announced. The distribution firm had warned it would cut off deliveries over unpaid bills, closing the smelter's major production units. Kremikovtzi future looks increasingly gloomy amidst workers' rallies over pay and the pulling out of investors. Executive Director Plamen Stoyanov denied reports that Brazilian CSN, the only potential bidder for Bulgaria's insolvent steel mill, has confirmed it is no longer interested. In his words, gas deliveries will be conditional on the final outcome of the negotiations with the Brazilian giant for a tolling deal to buy coke from Kremikovtzi. "Talks are expected to be wrapped up in a week a week," Stoyanov said.
Source: Pari (07.04.2009)

Sofia: South Stream should use different infrastructure According to Bulgaria's Minister of Economy and Energy, Petar Dimitrov, Bulgaria's gas transmitting infrastructure cannot be incorporated in the South Stream pipeline. "Filling up our system with natural gas from Gazprom only will make useless Bulgaria's initiative to seek alternative energy suppliers," Minister Dimitrov says. Russian journalists suggest that Sofia's moves aim to increase the price of the project and to urge Moscow take measures to eliminate the intermediaries in supplying natural gas to Bulgaria. RBK Daily writes that Gazprom wants to use Bulgaria's pipeline to Greece in order to save from the construction of an alternative pipeline, which would cost US$ 2 million per kilometer. "We are still decided to file claims against the parties responsible for the gas crisis in January," Minister Dimitrov said. He raised the question during his visit to Moscow.
Source: Standart (08.04.2009)

The Commission for Protection of Competition (CPC) imposed two penalties of BGN 10 thousand and BGN 50 thousand to Heat Supply-Burgas SPJSC for offenses, consisting of laying dowm unfair trade conditions and unlawful consumption of gas supplied to Burgasgaz SPLTD. The suitor Burgasgaz uses the spare capacity of the pipeline of Heat Supply-Burgas against payment, on the basis of a contract for access, renewable annually. CPC decided that it is unacceptable, the heating company being disloyal user, to have the right to impose restrictions in the use quantity of gas on the other connected to the line user who pays the used gas to Bulgargas.
Source: econ.bg (14.04.2009)

Bulgarian gas firm Bulgargaz will be fined between BGN 20,000 to 1 million for failing to submit its 2008 business plan within the deadline. Moreover, the gas company has charged Gazprom Export for carrying Russian gas across Bulgaria, which is a duty of Bulgartransgas, said Konstantin Shushulov, chairman of the State Commission for Energy and Water Regulation. The EU gas market directive stipulates that the fee should be collected by grid operator Bulgartransgas to upgrade the network and beef up security of supplies. Pocketing more than BGN 100 million from the fees annually, Bulgargaz used to say it offset losses accrued by the lower gas tariffs set by the regulator. Thus the watchdog in fact allowed cross subsidising of the prices, a case which was referred to the prosecution by Bulgartransgas executive director Angel Semerdjiev. The energy minister also ordered a probe, which discovered that Bulgargaz had acted in violation of the EU directive.
Source: Dnevnik (15.04.2009)

Bulgaria to Get Natural Gas from Egypt in 2011 Bulgaria's is going to receive 1 billion cubic meters of natural gas from Egypt annually starting 2011-2012. This provision is included in a bilateral draft memorandum, BGNES reported. The memorandum will be signed by Bulgaria's Energy and Economy Minister Petar Dimitrov and Egypt's Minister of Oil, Amin Sameh Fahmi during the "Natural Gas for Europe" Summit in Sofia on April 24-25, 2009. The Egyptian gas will be delivered to Bulgaria first through the Arab Pipeline to Turkey, and then through the liquefied natural gas (LNG) terminals in Southeast Europe. The Bulgaria-Egypt Memorandum also states that the parties will explore the opportunities for transporting Egyptian natural gas to the EU though Bulgaria's gas transit network.
Source: Darik Radio (17.04.2009)

Energy Interests Clash at Forum in Sofia A global energy forum will be organized in Sofia on Friday and Saturday under the motto "Natural gas for Europe - security and partnership". The event will be attended by heads of state, ministries, experts and heads of energy companies. Observers expect a silent energy war to unfold at the forum, waged by centuries-old diplomatic means like the presence or absence of certain delegates, which expresses the position of their countries on certain issues, and the pushing of certain projects and topics up on the agenda at the expense of other. A few days before the opening of the forum, it is still uncertain who will be coming to Sofia. High representatives of twenty-nine countries and international organizations among them being Austria, Azerbaijan, Albania, Armenia, Bosnia and Herzegovina, Georgia, Greece, the European Bank for Reconstruction and Development (EBRD), EU institutions, Egypt, Italy, Kazakhstan, Qatar, Macedonia, Moldova, Romania, Russia, USA, Slovenia, Serbia, Turkmenistan, Turkey, Ukraine, Hungary, Germany, France, Croatia, Montenegro and the Czech Republic. Russian PM Vladimir Putin, Qatar Amir H.H. Hamad Bin Khalifa Al-Thani, heads of state from the region and EC President Jose Barroso are expected to attend the forum. However, few of the invited statesmen have confirmed their participation in the forum. The exact topics to be discussed at the forum are not completely clear yet. Bulgaria's President, Georgi Parvanov, at the personal initiative of whom the energy summit in the National Palace of Culture is organized, has forwarded four ambitious goals, which are especially topical after the gas crisis in January that hit Bulgaria hardest. These are as follows: 1. Defining new European energy policy; 2. Search for new international agreements and achieving permanent guarantee for the energy security in Bulgaria, the Balkans and Europe; 3. Implementation of strategic projects like Nabucco and South Stream; 4. Prevention of crisis situations related to supplies of natural gas and oil. "Bulgaria endeavors to develop good relations with Russia," Bulgaria's President Georgi Parvanov said in an interview with German newspaper Seuddeutsche Zeitung. President Parvanov put the stress on the friendly relations between our country and important and promising gas suppliers as Aserbaijan, Turkmenistan and Uzbekistan. "This are good prerequisites for Bulgaria to play the part of a mediator, fulfilled with good will, if that is what the EU wants," Parvanov commented. At the same time, Sofia will host a parallel business forum which is to be joined by the representatives of leading gas companies. The event is organized by the Bulgarian Energy Holding. It will be opened by Bulgaria's PM Sergei Stanishev.
Source: Standart (21.04.2009)

Varna Becomes Gas Klondike Bulgaria's coastal city of Varna may become a Klondike of natural gas, it emerged during a discussion anchored by Standart's Editor-in-Chief Mrs Slavka Bozukova. "The exploitation of the newly-discovered gas deposits Kavarna 1 and Kavarna 2, Kaliakra and the small deposits that meet local needs will boost the city's economic development," Bulgaria's Minister of Economy and Energy Petar Dimitrov said. "The strategy for diversification of the gas supplies to Bulgaria also involves the construction of a depot in the Galata gas field and terminals for supply of liquefied and compressed natural gas at Port Varna. It is also possible that South Stream pipeline reaches Bulgaria at the coast of Varna," Minister Dimitrov added. "We are now fully dependent on Russia for natural gas supplies, but we think that by 2020 this dependency will fall to 59 percent, because by then Bulgaria will be able to meet 30 percent of its domestic demand for this fuel through supplies from the gas networks of Turkey, Greece, Italy (’GI) and the Nabucco pipeline, and by 2030 Bulgaria will become even less dependent on Russian gas, as the TGI pipeline will connect to our gas transportation network," the minister said in conclusion.
Source: Standart (22.04.2009)

No Gas for Kremikovtsi after St George's Day Kremikovtsi steel mill is likely to cease functioning after St George's Day, that is May 6. After the holidays, May 1-6, Bulgargaz will stop the gas supply to Bulgaria?s largest metalworking company, reported Dimitar Gogov, head of Bulgargaz. "Unless the future of the company is clear by then, we will stop the fuel supply," Gogov told on the Bulgarian National Radio. No more gas supplies means no more processing of coke in the mill. Thus the furnaces in Kremikovtsi will be able to work on imported coke only.Meanwhile the workers in Kremikovtsi announced they would carry on their protests in front of the plant because Sofia downtown is closed for the energy forum.
Source: Standart (24.04.2009)

South Stream to Warm Europe for 100 Years Sergey Ivanovich Shmatko, Russia’s Energy Minister - Mr. Shmatko, how do you see Bulgaria as an energy center on the Balkans? - Bulgaria boasts a wonderful geographic location. It is on the way of all energy transit routes starting from Russia, Central Asia, the Middle East, northern Africa, the Black Sea region and the Caucasus that reach the EU. Bulgaria has all prerequisites to be the new energy center of Southeastern Europe. - All parties are interested in the speeding up the construction of the South Stream pipeline. It is said that for that purpose natural gas should be transited via Bulgaria’s territory through the already existing pipe network. What are the pros and cons of such a decision? - The routing issue and the use of the existing network of Bulgargaz will be examined according to the results of a technical and economic research. An option will be discussed at which the gas transit to third countries of a certain volume supplied through the pipeline will be realized with the use of the existing gas transit system. - Bulgaria’s current agreement on gas deliveries expires in 2010, which means that there will be new talks. Would the middlemen fall out? Would there be new gas transiting conditions? And most important: would there be a change in prices? - You should seek an answer to this question from the Gazprom and Bulgargaz officials. It is an issue to be settled on a corporate level and by means of a corporate agreement. - And what developments should be expected with regards to South Stream? - Regarding South Stream, our decision is to have its pipelines up and running no later than 2015. And so shall it be. We have, in practice, completed the process of concerting the necessary intergovernmental papers. That the Prime Minister of the Russian Federation did not arrive to Sofia and there are plans for the agreement to be signed in Moscow doesn’t mean we see any risks having to do with the project’s implementation. The South Stream project is being implemented as planned. The project’s major problem – its resource basis – has already been solved. The resource basis will be linked to Russian gas deposits, and Russia has enough gas to secure deliveries to Europe in the next 50, even the next 100 years.
Source: Standart (24.04.2009)

South Stream Project to Be Implemented as Planned Doctor of Geology Valentin Kanev has chaired the Balkan and Black Sea Petroleum Association since its establishment in February 1995. - Dr. Kanev, in your capacity of gas expert you are familiar with the news concerning the organization of the energy summit ?Natural Gas in Europe. Security and Partnership? held in Sofia. In your opinion, why Russia's Prime Minister Vladimir Putin and other heads of state who were invited as well as EU Energy Commissioner, Andris Piebalgs refused to take part in the forum? - Putin's decision is related mostly to the negotiations on the South Stream project which were supposed to happen but for certain reasons it turned out that they will not be held in Sofia. And South Stream is so significant a project that it is by itself a sufficient reason for the presence or absence of Russia's Prime Minister. As long as the other reasons circulated lately and cited for Putin's refusal, such as the presence of Georgia's President, they do not sound serious. - Do you think the Russians are right to insist on South Stream gas being transported on the currently existing Bulgarian gas transit network or does Bulgaria have the right to demand the construction of a new pipeline for the project? - I think the gas of South Steam can be transited via Bulgaria's existing network only is the latter does not have to change ownership for the purpose. Consequently Bulgaria may transit South Stream gas against a certain transit fee.
Source: Standart (24.04.2009)

Moscow is speaking… Bulgargaz and Gazprom will sign the agreement on South Stream gas pipeline in the middle of May. This was announced after the end of the talks in Moscow. Bulgarian PM paid a three-day working visit to Moscow. Russia has accepted all Bulgarian arguments following the meeting between Bulgarian Prime Minister Sergey Stanishev and his Russian counterpart Vladimir Putin on Monday before the opening of Bulgaria’s national commercial exhibition in the Russian capital. Tuesday’s meeting between the two prime ministers lasted more than half an hour. According to experts new obstacles can be put before the project in reference to dissensions with transit countries- resource deficit in reference to conflict with Turkmenistan as well as not enough financing, having in mind crisis influence upon Gazprom. It was announced in Sofia there were dissensions with Gazprom in reference to South Stream. Bulgaria refused proving part of its pipeline network to be used in the frames of the projects. Moreover it became clear at Energy Summit in Sofia this “dissension” could become the main one. Sofia asked Russia to sign new, more profitable contract on natural gas deliveries, to increase transit taxes as well as guarantees on natural gas deliveries on alternative routes in case of another gas crisis. Two-day summit on Natural Gas for Europe: Security and Partnership was held in Sofia on Friday at the initiative of Bulgarian President Georgi Parvanov. The Summit seeked to engage EU's major energy partners in a dialogue on the EU energy security approach. Invitations to the two-day forum have been extended to 28 countries from Southeast Europe, Black Sea and Caspian Regions, Central Asia, EU member states, Russia, Egypt, Qatar, to the European Commission and the European Bank for Reconstruction and Development. European Commission President Jose Manuel Barroso attends the summit. Main aim of the Summit was energy security in Europe and at the Balkans as well as opportunities on reaching united European Energy market. Immediately after the end of the international conference in Sofia, Bulgarian Prime Minister Sergey Stanishev arrived in Moscow. Russia expected that a preliminary agreement on the construction of the Bulgarian section of South Stream gas pipeline will be signed, but on the background of the growing competition of European project Nabucco, Sofia insisted on signing a new agreement on supplying Russian gas to Bulgaria under conditions that are more beneficial for it. Immediately after his meeting with Vladimir Putin PM Stanishev held talks with Russian President Dmitry Medvedev Russia Arms informed. At the beginning of the talks Russian President said he was familiar with the details of Monday and Tuesday’s talks and welcomed the constructive dialog between the two countries. You had a good full-fledged negotiations with the chairman of our government ... There are tangible results of your work. Anyway, the final agreement, I understand that the energy project. I hope that in this sense, we can finally go to the signing of documents at the earliest time, despite the difficulties of preparing the relevant documents, "- said Medvedev at the meeting. "You had a good full-fledged negotiations with the chairman of our government ... There are tangible results of your work. Anyway, the final agreement, I understand that the energy project. I hope that in this sense, we can finally go to the signing of documents at the earliest time, despite the difficulties of preparing the relevant documents, "- said Medvedev at the meeting. Sergei Stanishev also expressed satisfaction with the successful conclusion of talks with Prime Minister Vladimir Putin. "Well, that has successfully completed negotiations today to resolve the relationship between the Bulgarian Energy Holding and Gazprom pipeline" Southern stream ", - said Stanishev. He pointed to the complexity of the negotiations, in which" each side is looking for its maximum benefit, their interest. "
Source: Agency Focus (27.04.2009)

There's No Room for Concessions Peter Dimitrov, Bulgaria's Minister of Energy and Economy - Minister Dimitrov, what is the level of the negotiations that are currently being held between Bulgaria and Russia regarding the South Stream project? - Presently, no negotiations are being held. But they will probably be discussed on the highest political level. The questions that remained unsolved must be settled on the highest political level. - How do you interpret the postponed meeting between Russia's President Medvedev and Bulgaria's PM Stanishev? - Let's first see if the meeting was postponed or cancelled. - Does Russia insist on binding South Stream with the new agreement with Gazprom? - No, I do not think that the two issues are interrelated, though there are explicit questions in this direction. This is exactly what it was the case at the last negotiations before Putin intervened. The issues that remained unsolved are not to be settled at an expert level. The purpose of South Stream is to transport Russian gas to Europe. There will be no concessions on matters that hurt Bulgaria's interests. Bulgaria has already declared its position. This was noted in the intergovernmental agreement. Bulgaria's position cannot be changed. South Stream cannot used the present gas transiting system. Bulgaria insists to keep the current quantities of transported gas through the old system.
Source: Standart (28.04.2009)

Bulgaria Kremikovtsi Steel Mill Talks Reach Crisis Point Bulgarian deputy Economy and Energy minister, Nina Radeva, has stated that talks with Brazilian steel giant CSN over the future of Kemikovtsi are in crisis. Radeva said that the latest round of talks with CSN will probably finish unsuccessfully and that it is completely normal for Bulgargaz to stop gas supplies to the troubled plant over unpaid gas bills. She concluded that the future of Kremikovtsi is now wholly in the hands of its creditors and that the state will encourage them to enable work to keep going at the plant for as long as possible. Earlier, state gas monopoly Bulgargaz said it will cut gas supplies to Kremikovtzi steel mill after the holidays at the beginning of May. The distribution firm had warned it would cut off deliveries over unpaid bills, closing the smelter's major production units.
Source: Darik Radio (28.04.2009)

Moscow Yields to Bulgaria's Conditions over South Stream Project The South Stream gas project already includes the construction of a new pipeline through the territory of Bulgaria: this resulted from the game of nerves between Bulgaria and Russia. Before this meeting, Moscow insisted on using the already existing transiting pipelines of Bulgargaz. The South Stream pipeline will be a brand new one, but the Russians insisted on an appendix to the agreement reading that in case they need to use the existing network, an additional contract on the transit will be concluded, explained Galina Tosheva, head of the Bulgarian Energy Holding (BEH). BEH and Gazprom negotiated the details of the agreement on the South Stream project by e-mails. The contract will be signed within two weeks. Yesterday, an agreement on the construction of the pipeline was sealed in the presence of Russia's PM Vladimir Putin and his Bulgarian counterpart Sergei Stanishev. The negotiations on the energy projects between the Bulgarian and Russian delegations in Moscow continued about two hours yesterday. The Russian PM described the development of the bilateral economic relations as dynamic. Putin explained that in their bilateral talks they had discussed the construction of Belene NPP in details. Stanishev asked Putin for an offer for the construction a Belene NPP. "Last year we offered Bulgaria a credit, which was included in the budget. Bulgaria declined it and we redirected the money," explained Russia's Prime Minister in obviously good humour. Stanishev added that Bulgaria managed to secure funding of the project in the last two years. The completion of the project will need further billions, though. "We will solve the problem," Putin concluded with a smile. The construction of Belene NPP will need 3.8 billion euro more. The Bulgarian Government hoped to find financing through Western European Banks. These attempts have proved fruitless so far. "We have sailed smoothly over the tension of the last few days between Moscow an Sofia concerning South Stream, said PM Putin. He, though, diplomatically evaded answering on the elimination of mediators in the contract for gas supply for Bulgaria. Bulgaria wants to receive gas directly without the three suppliers, one of them Overgaz. The two prime ministers defined their dialogue as constructive. At the start of the talks, Putin welcomed his counterpart saying:" Friends, I am glad to see you in Moscow. We are significant economic partners to each other and I am glad we have the opportunity today to talk about all issues concerning our cooperation, to analyze what has been done so far and map out our future perspectives," Putin stated.
Source: Standart (29.04.2009)

Moscow Realized Bulgaria Can Do without Russia Peter Kunev, MP from BSP party - Mr. Kunev, did Bulgaria's delegation led by PM Stanishev fulfil the maximum of its program in the negotiations over the energy projects in Moscow? - We have never set a maximum or a minimum program before us. We flew for Moscow absolutely well-prepared; we had previously sent our written proposals both regarding the South Stream project and the new agreement for deliveries of natural gas and the financing and construction of Belene NPP. I think that we fulfilled all our goals at 100%. Bulgaria is quite satisfied that the Bulgargaz proposal for South Stream was accepted. This move defends at a maximum level Bulgaria's interest in this project. - What does the signed agreement for South Stream read? - The demands of the Russian side for inclusion of the already existing Bulgarian pipelines in South Stream was dropped. Bulgaria explained that such a thing was impossible to happen. In my opinion, we defended Bulgaria's interests quite well. The use of the Bulgarian gas transiting system in the South Stream project would have hurt Bulgaria's interests. - What was the turning point in the negotiations? - The turning point came in several aspects. First it came from the firm and well-balanced statement of PM Stanishev in the Diplomatic Academy with Russia's Foreign Ministry. PM Stanishev was explicit that corporate interests of a group of companies or a group of people should not take the upper hand over political decisions that had already been negotiated at governmental and presidential levels. The second thing which PM Stanishev stressed upon was the Bulgarian participation in the Nabucco project and the coming signing of an intergovernmental agreement on the issue next month in Prague which is a new development on this project. The third very important issue was the diversification of suppliers. An example is the establishing of a terminal for compressed gas in Greece. The Russians realized they will have to seek for a kind of a compromise and a solution to the situation. - How concrete were the negotiations for the possible Russian funding for Belene NPP? - The Belene NPP talks were very interesting. The topic needs calm discussion, without emotions. Why does everybody shudder when mentioned Bulgaria will take a loan from Russia' Is Russian money worse than the Kuwaiti, Omani or any other? - Within what time is the Russians' answer expected? - We did not specify time. Sergey Kiriyenko (head of Rosatom)will probably arrive in Sofia within a week or two.
Source: Standart (30.04.2009)

The company is registered in Territorial administration Big taxpayers and insurers towards 2009, 04.30
Source: Tax Administration (30.04.2009)

Bulgargaz cuts gas feeding to Kremikovtzi on May 12 So far there isn’t another letter from Bulgaria's gas monopoly Bulgargaz and the only information is that gas feeding to Kremikovtzi steel mill would be suspended on May 12 until 2.00pm, assignee in bankruptcy of Kremikovtzi Tsvetan Bankov said. He said that readiness for suspension of natural gas supply to the factory is permanent. “Gas consumption has been reduced since last year. We work with the same gas quantity that we were receiving during the gas crisis”, the assignee said. In his words shifting to the gas suspension plan could be realized with 24 hours.
Source: Darik Radio (08.05.2009)

EIB to invest EUR 2, 5 billion in Nabucco Philippe Maystadt, President of the European Investment Bank (EIB) stated that the institution was willing to invest EUR 2, 5 billion in the Nabucco project. Mr. Maystadt commented, that the quantity of gas produced by Azerbaijan will not be sufficient for the implementation of the project and that Turkmenistan must by all means take participation.
Source: Standart (11.05.2009)

Minister: We stop the financial aid The Government finds it impossible to keep on the financial injections for Kremikovtzi, said Minister of Economy and Energy Petar Dimitrov. We poured energy, that was not paid for, through NEK and Bulgargas for BGN 10 mln each month in the last year and a half. This has to stop now, said Minister Dimitrov. A lay-off of 1400 workers has started at the plant. If the negotiations for Kremikovtzi do not produce any results, the gas supply would be cut off, he said, before receiving the new proposal by the bondholders.
Source: Standart (13.05.2009)

Kremikovtsi Gas Supply Cutoff Put on Hold The gas supplies for Kremikovtsi steel mill haven't been cut off despite the fact that by 01:00 pm yesterday Bulgargaz threatened to leave the mill without gas due to the plant's huge debts. Later, the Ministry of Economy and Energy ordered that the gas supplies cutoff be postponed by this morning. At a sitting yesterday evening, the authorities from the Energy Ministry discussed the future of the plant, while in the meantime the receiver was negotiating a recovery plan with the creditors.
Source: Standart (15.05.2009)

Kremikovtzi to turn into the new Boyana within 3 years Chief Architect of Sofia, Petar Dikov, said that there are plans for turning Kremikovtzi District into an area of low-store luxurious buildings. This means that within 2-3 years there may be a new quarter near Kremikovtzi, such as Boyana or Dragalevtzi. The plant, which was born exactly 50 years ago froze to death yesterday and said fairwell to its most polluting installation – the coke chemical mill. Even if it is reborn someday, the Northeast part of Sofia would never see such black clouds ever again.
Source: 24 chasa (16.05.2009)

12:43 p.m.: Kremikovtsi Dies on Its Birthday As of yesterday Bulgaria’s steel manufacturing giant Kremikovtsi is in clinical death. At 8:00 am worker teams began turning off the taps of the pipes that fuel the furnaces with natural gas. At 12:43 the gas supply for the coke-chemical plant stopped, which practically put halt all other activities, and, ironically, this happened on the very birthday of the plant. “Its two batteries were for the first time switched on precisely on May 15, 1963 and never went off in the 46 years that followed,” chief technologist Daniela Ermenkova said. The decision to cut off the gas supply became a must after the yesterday’s negotiations with the Brazilian investor CNS failed. The order for the closure was given by the Bulgarian Ministry of Economy and Energy.
Source: Standart (16.05.2009)

South Stream Flows out of Sochi The 2014 Winter Olympics venue – Sochi - yesterday gathered the reps of the Russian, Italian, Greek, Serbian and Bulgarian gas companies that were supposed to sign an agreement for setting up a joint venture and building the South Stream pipeline that would run through the territories of these countries. Gazprom’s agreement with Bulgargaz will read there would be brand new pipes laid in Bulgaria, ITAR-TASS reported. Bulgaria will be using this new gas transfer system to cover its own needs. Gazprom and Bulgargaz are getting ready to establish a new joint venture with a 50:50 share of ownership. According to current schedules, the project should be fully implemented by 2013.
Source: Standart (16.05.2009)

Consolidated sales incomes of Bulgartabac Holding for 2008 dropped by 20% to BGN 307.3 million, the auditing report to the Bulgarian Stock Exchange shows. Earnings from realised production, which are the most important part of the incomes, dropped even more (by 23%) to BGN 255 million. Annual consolidated auditing turnover of the company dipped by 6.80% to BGN 366.4 million. Expenses were also up by 13% to BGN 336.9 million. Nevertheless, Bulgartabac posted consolidated annual profit for 2008 amounting to BGN 27.5 million, which is a rise by 685.7% year on year.
Source: Pari (25.05.2009)

Bulgaria Govt Moves Closer to Nabucco Pipeline Agreement Bulgaria's cabinet voted Thursday to authorize the Foreign Ministry and the Ministry of Energy and Economy to sign an intergovernmental agreement for the construction of the Nabucco gas transit pipeline. Bulgaria's Energy and Economy Minister, Petar Dimitrov, commented that providing the funding for the realization of the EU-sponsored Nabucco project was the job of the six companies that are part of the Nabucco consortium, including the Bulgarian Bulgargaz. The securing of the natural gas supplies to fill the pipe, however, is more of a political issue rather than an economic one, and necessitates a political commitment on part of the interested states, Dimitrov said.
Source: Darik Radio (29.05.2009)

Negotiations on Gas in Moscow Negotiations on gas supply started on Thursday in Moscow. Head of Bulgargaz Dimitar Gogov met with Alexey Miller, Chairman of Gazprom Management Committee, sources from the Russian company announced. Gogov himself has confirmed before Mediapool that these were the first talks after Bulgaria had sent a proposal for a new contract. Gazprom has also made its offers. Due to the fact that the stands of the two parties do not coincide "two small teams have been created to solve the pending questions". He explained that quantities, prices, fees and terms will be negotiated at the next meeting. "The question about the intermediaries hasn't been discussed," he added.
Source: Standart (30.05.2009)

Bulgargaz Offers 33% Increase in Natural Gas Price The state owned Bulgargaz has offered to the State Energy and Water Regulatory Commission (DKEVR) 33,14% lower natural gas price from July 1. Bulgargaz had to present an offer to DKEVR until June 10, Darik Radio Reported. If the proposal is accepted, the naturals in Bulgaria will cost BGN 365 per 1000 cubic meter, which is BGN 180,94 less then the current price. The Bulgarian gas supplier's initial offer was a 29,92% decrease. It was announced in early May. The company explained its decision to decrease the prices even more with the fall of alternative fuels' prices and the fall of BGN-USD rates.
Source: Darik Radio (09.06.2009)

Kremikovtzi supplied with gas Kremikovtzi is being supplied with gas since June 4 and processes scrap, said the assignee in bankruptcy Tsvetan Bankov. The processing of materials would continue until June 15. Only the electrical furnace operates and the aim is to reduce the debts of the steel plant and to pay the advance payments of the workers for May. The current gas supply is paid daily after a new contract with Bulgargaz, said Bankov. The steelmaker supplies hot-rolled steel to 5 of its regular clients. The steel production needs gas worth BGN 100-130 thous a day. Thanks to the restarted operations, the planned for June lay-off of 1500 workers would be delayed for the end of August.
Source: Standart (09.06.2009)

Creditors share Kremikovtzi The biggest group of Kremikovtzi’s creditors – the bondholders, will present a recovery plan within the legal period – June 29, said their representative Georgi Prohaski. He said that the basic idea is capitalization of the debts, which means that the private investors would receive properties for the debt of the steelmaker to them. Installation able to operate at the current market would not be terminated. The production capacity would determine the number of the employees at the plant. However, mass lay-offs would be necessary, said Prohaski. He hopes that the recovery plan would be voted in cooperation with the various state representatives, which are also part the creditors. Among them are the State Receivables Collection Agency, NEC, Bulgargaz. Prohaski also hopes that the decision of the Administrative Court from June 10 would not be litigated.
Source: Trud (15.06.2009)

Kremikovtzi debt to Bulgargaz draws several suitors Several companies have expressed interest in the purchase of the BGN 106 million liabilities of Bulgaria’s ailing steelmaker Kremikovtzi to state-controlled gas company Bulgargaz, said the gas firm’s executive director Dimitar Gogov. The candidates should state their intentions by June 30, Gogov noted, saying he hoped bondholders would also show up as prospective buyers.
Source: Dnevnik (24.06.2009)

Bulgaria to Receive Natural Gas without Intermediaries after 2013 "Bulgaria will be receiving natural gas directly from Gazprom without the interference of any intermediaries from 2013 at the earliest, when the contracts that the government has signed with the intermediary companies expire," Bulgargaz CEO Dimitar Gogov said. "Despite the start of the Nabucco and South Stream pipeline projects, Bulgaria is firmly decided to keep its gas transport network," Bulgaria's Economy and Energy Minister Petar Dimitrov said at the opening of the upgraded Kardam 2 gas compressing station - the gateway of the Russian gas supplies to Bulgaria.
Source: Standart (24.06.2009)

Gazprom: “No-Middlemen” Contract with Bulgaria No Earlier than 2013 “Gas deliveries without intermediaries may be a fact no earlier than 2013. A direct agreement between Bulgargaz and Gazprom is possible, but not before all previously made arrangements are fulfilled,” Gazprom vice president Alexander Medvedev said, as quoted by the Bulgarian National Radio. The currently valid agreement is with Overgas and will be terminated in 2012. Medvedev prognosticates that the average price of Russia’s gas for the European Union this year will be 280 dollars per 1000 cubic metres. Medvedev also announced that the Gazprom fuel export in the first half-year will be 26 percent or nearly 60 billion cubic metres less than initially planned.
Source: Standart (25.06.2009)

Petreco Bulgaria Ltd., extracting natural gas from the Black Sea shelf, accounts for sales revenues of BGN 27 million in 2008, which indicates a 14% drop against ’07 levels (BGN 31.2 million) and a 44% nose-dive compared to its revenues back in 2006 (BGN 48.5 million). Petreco’s net gain shrank to BGN 5 million in 2008 compared to BGN 11.3 million back in 2007 and BGN 18.9 million in 2006. The company’s own capital stood at BGN 30.3 million in late 2008.
Source: investor.bg (26.06.2009)

The assignee in bankruptcy applied a recovery plan for Kremikovtzi Capital of Kremikovtzi JSC will be increased, and private creditors in the plant will receive property for their debts. This is included in the recovery plan, applied by the assignee in bankruptcy Tsvetan Bankov at the Sofia City Court. The program, which is to revive the plant, has been coordinated with the operative management and with the bondholders. This means that there should be talks for extending about BGN 100 mln. NEK is waiting for a proposal. Bulgargaz said that it plans to sell its debt. Kremikovtzi owes the two state-owned companies about BGN 250 mln. The matter with the so called ‘state aid’ of BGN 700 mln is still pending. Currently its recuperation is appealed in court. Creditors hope that this debt would drop off. However, this would mean that we do not follow the European legislation, said deputy minister Nina Radeva. According to the Trade Register, the recovery plan should be discussed at a general creditors meeting and its implementation should start if accepted. The plan includes an overhaul of the steelmaker. The necessary funds would come from the saleof the carbon dioxide emission allowances, which are due to the plant but are not used.
Source: Trud (30.06.2009)

Every fifth big company report loss Every fifth company from Top 100 in Bulgaria reported loss for 2008 as a result of the financial and economic crisis, according to the rating chart Capital 100. As compared to a year earlier, only eight companies from the 100 biggest in Bulgaria had reported loss. The average profit of he companies in the Top 100 list in 2008 fell to BGN 2.5 mln. The first place by income is taken by Lukoil Neftochim Burgas, which however, reported about half a million loss last year. The second place is for Lukoil-Bulgaria, while Natsionalna Elektricheska Kompania is third. The three companies held thier leading places from the previous year. The fourth and fifth companies in the list are respectively Aurubis Bulgaria (the copper smelter in Pirdop) and OMV Bulgaria. Right after them are Bulgargaz and Mobiltel. The Top 10 is finished by Stomana Industry, Overgaz and CEZ Electro. The Top 10 have turnovers of over BGN 1 bln in 2008. The total income of the ten enterprises is BGN 25 bln, which almost 40 percent of the GDP of Bulgaria.
Source: Standart (30.06.2009)

Bulgargaz, the state-owned gas distribution firm, said that it posted a 91 million leva loss in 2008, as opposed to 87 million leva profit for 2007. The loss was reported despite a 29 per cent increase of annual turnover. Revenue from natural gas retail rose by 27 per cent to 1.57 billion leva, but the company paid 1.81 billion leva to buy natural gas, 241 million leva more than it actually managed to sell on the domestic market. Transit revenue figures stood at 140 million leva in 2008, an 8.42 increase as opposed to 2007, despite dwindling transit traffic as supplies to Greece fell by 9.44 per cent and a 1.62 per cent decline in supplies for Turkey. But the main reason for the net loss were the debts owed by utility companies. At the end of 2008, Toplofikatsiya Sofia owed Bulgargaz 268 million leva, which has been covered partially since then. Bulgargaz is also due 9.5 million leva from Toplofikatsiya Pernik and 196 000 leva from Toplofikatsiya Shoumen. All three heating utility companies are currently state-owned.
Source: investor.bg (01.07.2009)

Bulgargaz denied a share in Kremikovtzi Bulgargaz will categorically deny the offer for swapping the unpaid gas bills for acquisition of part of the plant’s assets. ‘We do not need shares in a losing company, we need fresh funds. Without it, the whole natural gas supply system for the country is at risk’, said the executive of Bulgargaz - Dimitar Gogov. The first attempt of Bulgargaz to sell its Kremikovtzi debt, about BGN 106 mln, was unsuccessful. No candidate appeared before the deadline on June 30. ‘I want a meeting with the bondholders of Kremikovtzi. We have to decide whether to announce a new date for sale of the debts until mid next week’, Gogov added. He counts on becoming familiar with the recovery plan, applied by the assignee in bankruptcy – Tsvetan Bankov. However, one of the ideas of the plan is capitalization of the debts of Bulgargaz and NEK.
Source: Trud (02.07.2009)

State-run Bulgargaz wades into the red in 2008 Bulgaria’s state-controlled gas company Bulgargaz swung to a loss of BGN 90.5 million in 2008 from a profit of BGN 86.9 million for the previous year. The company attributed the negative performance to the prices said by the energy watchdog, the State Energy and Water Regulatory Commission (SEWRC), which halved most of its price hike requests. Bulgargaz raked in sales of BGN 1.3 billion, some BGN 300 million on top of last year’s figure. Supplies prepayments rose to BGN 95 million. Transit fee receipts paid by Russian gas mammoth Gazprom to carry gas across Bulgaria to Greece, Turkey and Macedonia, marked a slight decrease after earlier this year receipts were channeled to grid operator Bulgartransgaz to overhaul the infrastructure. The move, which was prompted by the regulator and the European Commission (EC), left Bulgargaz with BGN 73.9 million of the total 140.2 million, where a portion was given to the grid operator. The state-run firm has taken bank loans to the amount of BGN 196 million, including debt to the Bulgarian Energy Holding (BEH), the catch-all structure for the country’s top energy assets. Short-term liabilities have widened to BGN 356 million from BGN 123 million.
Source: Dnevnik (07.07.2009)

Energy Holding managers cost over BGN 1 mln The five members of the Bulgarian Energy Holding have cost the state-owned company BGN 649 thous until now. In case the new Government decides to replace them, the figure may reach BGN 1 mln. The calculations are based on the financial reports of BEH in the last 2 years, available on the web site of the company. A few days ago the future PM of Bulgaria Borisov said that the management of the company would be changed, whatever the cost. The motive is that the 5-year contracts of the five members of the board include a condition for a 3-year prenotice. The 5 members are the chairman Galya Tosheva, Dimitar Dimitrov, Bulgargaz’s chair Dimitar Gogov, Tencho Popov, who is ex-secretary general at the Finance Ministry of Milen Velchev, and Boris Petkov, executive of the state-owned company for radioactive waste. If they are discharged they would have to receive their salaries for the next 3 years. In 2007 the total sum paid for them is BGN 347,000. In 2008 their salaries are lower, but they have voted themselves higher bonuses. According to calculations, the main monthly salary of each of them is about BGN 3000 on average. In case of discharge, the State would have to compensate them with about BGN 540,000 and the total expense for them would reach BGN 1 mln. For comparison, the net profit of the holding after taxes is BGN 52 mln.
Source: Sega (09.07.2009)

Bulgaria might buy gas from Blue Stream Bulgaria could buy natural gas from the Russian-Turkish gas pipeline Blue Stream, the executive director of Bulgarian Energy Holding EAD (BEH EAD) Galina Tosheva said. In her words, BEH had already talked to Gazprom on the matter, but no deal had been clinched that far. Bulgaria had other options as well – receiving gas via Greece. BEH had already filed the application papers with the European Commission (EC), seeking funding for the construction of the intersystem links with Greece and Romania, worth respectively EUR 45 million and EUR 10 million.
Source: Standart (17.07.2009)

New ideas for Kremikovtzi The candidates for Kremikovtzi started declaring interest. Dozens of letters from creditors, wanting to turn their debt into shares, are sent to the assignee in bankruptcy Tsvetan Bankov. The deadline is August 17, when the 1-month period from applying the invitation to creditors in the Trade Register expires. As for the moment, however, the letters are only from the small creditors. The biggest – bondholders, state-owned Bulgargaz and NEK, are expected to apply close to the deadline. Kremikovtzi is an almost private company and the best choice for the State is to back off from it, said Minister of Economy, Energy and Tourism – Traycho Traykov. Next week PM Boyko Borisov and Traykov would meet with representatives of the bondholders in order to discuss further actions. After August 17, three experts assigned by the Registry Agency would determine the number of shares that each creditor would receive. After the final list is prepared, Court has to appoint a date for its approval by the creditors meetingMost probably the evaluation will take two weeks, Bankov said. The creditors meeting would take place in early September. The creditors would also have to vote for the recovery plan implementation. It includes the transormation of the debts into shares and funding through further loans or bond issues. After that the plant would have to find a strategic investor. The steelmaker keeps on producing steel from scrap. Kremikovtzi is supplied with natural gas and it pays regularly to Bulgargaz its bills. However, currently the workers receive only advance payments – for the months from March to June. They have not received salaries since december 2008.
Source: Standart (06.08.2009)

Bulgargaz Demands 4,33% Natural Gas Price Increase The state owned Bulgargaz has submitted an offer to the State Commission for Energy and Water Regulation (DKEVR) for a 4,33% increase in natural gas prices in the last quarter of 2009. This has been announced by the Bulgargaz press office on Tuesday. If the DKEVR accepts the proposal, the price of the natural gas in Bulgaria will go up by BGN 15,81 per 1 000 cubic meters to reach BGN 380,84 per 1 000 cubic meters, without the value added tax (VAT). The rationale for the increase is the higher price of the blue fuel on the international markets in the last few months, Bulgargaz said. The state owned company has one month to file a proposal with the state regulator DKEVR, which will make the decision on the increase of gas price starting October 2009. Before officially announcing its decision, Bulgargaz expected a 2% increase in the price. Outgoing Chair of DKEVR, Konstantin Shushulov, promised that if the rise was minimal there would not be an increase of the central heating prices.
Source: Darik Radio (12.08.2009)

Bondholders back Kremikovtzi rescue, poised to swap debt for equity The major bondholders and leading creditors of Bulgarian ailing steel mill Kremikovtzi have so far vowed support for the conversion of their claims into equity, said sources in the know. Sixty-five percent of owners of debt payable by Kremikovtzi have voted in favour of the rescue plan within a preliminary internal voting procedure staged by the bond issue trustee, Low Debenture. The remaining 35% of the votes were against the plan or neutral. However, the trustee has sent a letter of intent to the court-appointed receiver of the bankrupt mill, Tsvetan Bankov, expressing bondholders’ intentions to convert the entire issue into shareholders’ equity. The trustee can change its decision if an evaluation of the claims is released before the creditors get together in October, pointing to a disadvantageous swap coefficient. The other big private creditors – India’s State Trading Corporation which is owed around USD 200 million, and Stemcor, which claims USD 60 million from the mill, have sent letters to the receiver demanding capitalisation. Their move was mimicked by state suppliers NEK, Bulgargaz and BDZ. On the other hand, a pocket of bondholders, press for the company’s liquidation through asset sellout and hope arguments in favour of the closure would prevail in October as the preliminary voting has no mandatory character. The steel maker will amass losses in the next couple of years as indicated by its last year’s results and from this point of view Kremikovtzi is strategically more attractive as a bundle of assets and equity rather than as a whole enterprise, economist Krasen Stanchev who is consultant on liquidation supporters, told Dnevnik. Followers of the rescue plan, in turn, accuse liquidation backers of being unable to plunk additional money into the mill’s resuscitation.
Source: Dnevnik (18.08.2009)

New Kremikovtzi for BGN 1.5 B Debts of Kremikovtzi for about BGN 1.5 bln would be transformed into shares. This is the approximate debt to creditors, who have declared intention to become shareholders of the steelmaker, said the assignee in bankruptcy Tsvetan Bankov. This option is included in the recovery plan of the plant. However, experts are yet to estimate the number of shares each creditor would receive for a BGN 1 of debt. The estimate would depend on how and whether the debt is provided for. So, for the time being the eventual influence of the shareholders is still unclear. Creditors, that have declared interest in becoming shareholders are 57. Some of them, however, have to receive several debts. The total debt of Kremikovtzi to all of them is BGN 1,486,380,321 or almost one and a half billion. The debt to the bondholders is the biggest – BGN 695,097,765. Others intending to become owners of part of the steelmaker are NEK, BDZ, Bulgargaz, India-based STC, Ecometal Engineering, Stemcor. Bankov would apply for assigning experts, who would have to estimate all takings. After the estimate it would be decided whether to transform it into shares or to cash the properties of the plant. As from August 1 Kremikovtzi pays its current debt to NEK, Bankov said. He plans to make Kremikovtzi cover its current expenses through sold output within a month and a half. For the time being the plant produces minimum quantities and pays for the gas it uses.
Source: expert.bg (24.08.2009)

Liquidation of Kremikovtsi The state will require the liquidation of Kremikovtsi steelworks, sources from the Bulgarian Ministry of Finance informed. The state will not back the revival package for the plant; the plan envisages creditors to convert the liabilities into shares and become shareholders of the steelworks. The bond-holders’ plan cannot be executed because the capitalization of the state receivables of the state represented by Bulgargaz, the National Electrical Company and the State Railways will turn into an unapproved subsidy, commented the Ministry of Finance. Such an action would provoke a conflict with the European Commission. Besides, even if more money is poured into the plant its work will not be profitable, the Ministry of Finance is explicit. If the plant can make any profit, let it be restored with private capitals only. Instead of struggling to heal the polluting production of Kremikovtsi, we’d better think what to have in its place. For instance a technological park can be established there, after the idea of Prime Minister, Boyko Borissov, commented sources from the Ministry of Finance.
Source: Standart (25.08.2009)

Management of the energy holding to be also changed Minister of Economy Traicho Traykov said that there is an option to replace the management of Bulgarian Energy Holding (BEH). The holding was founded last year and unites Mines Maritsa Iztok, TPP Maritsa East 2, Nuclear Power Plant Kozloduy, National Electricity Company, Bulgargaz and Bulgartransgas. Mr. Traykov added that the members of the board of directors would be reduced from 5 to 3. The deputy chair of the board Tencho Popov is likely to be the first one replaced. Traykov did not disclose the future of the current executive of BEH – Galina Tosheva.
Source: Novinar (26.08.2009)

Kremikovtzi future depends on the state aid case Kremikovtzi future depends on the development on the case with the BGN 700 mln of state aid for the plant, said the Minister of Economy, Energy and Tourism Traicho Traikov. He said that there is an option for the State to withdraw from the case for returning the funds, which would make the bondholders of Kremikovtzi the biggest creditors. They would be able to carry out the liquidation, after which the operating businesses would be made available to investors in order to continue the production, Traikov added. The other option, in which the State keeps on with the legal proceedings, is not the best option as it would make it responsible for the recovery of the plant as thereof for the new debts to NEK and Bulgargaz.
Source: Standart (26.08.2009)

15% of the subsidiaries of the Bulgarian Energy Holding (BEH) will be placed on the exchange, said Finance Minister Simeon Diankov. Holding does not work and the option is that it be closed and percentage of companies operated by him to be placed on the stock exchange and their activities must be transparent, "he explained. Holding was established in September last year by the cabinet "Stanishev" and it included NEK, Kozloduy NPP, TPP Maritsa Iztok 2 "Maritsa East" Bulgargaz with its subsidiary companies Bulgartransgaz and Bulgartel, the Energy System Operator (ESO).
Source: Novinar (01.09.2009)

The Bulgarian Energy Holding, a mega-structure, which groups all big state-owned energy firms, but has been marked for closure by the new center-right government, said net profits rose by BGN 29.3 mln in July. Net profits increased by 29.3% on an annual basis, towering to BGN 57.9 mln, helped by the improved financial performance of four of the companies that go into the holding and a slow-down in losses incurred by the national electricity distribution company NEK. EBITDA rose to BGN 255.8 mln, while operating income marked a 12% rise. The holding was created in 2008 with the merger of five state-owned companies into a EUR 4 bln energy giant.
Source: Darik Radio (03.09.2009)

Kremikovtzi assets sparse to patch up even half of debt The assets of Bulgaria’s debt-saddled steel mill Kremikovtzi have been attached a market value of BGN 837.2 million, according to the report by Amrita consultancy, which was hired to appraise the company. But with the plant’s total debt running at BGN 1.9 million depending on the outcome of a number of court battles, creditors will not be able to cover 100% of their claims. The assets’ liquidation value has been set at BGN 662.7 million, which represents the possible sale proceeds, adjusted by sale costs and other provisions. The existing assets could be enough to cover between 50% and 30% of the claims but creditors could count on a different percentage depending on class. Creditors with receivables secured by a pledge on assets will be highest on the priority list. The largest private claim – on the company’s bond issue whose interest has ballooned to BGN 698 million -- is secured by a pledge. And Arcelor Mittal, the world’s largest steelmaker, also has a secured claim of BGB 36 million. Sources close to the matter say the collateral covers close to 20-25% of the claims but it all hinges on the proceeds that would be made if the company’s assets do go on the chopping board. Although it could turn out as Kremikovtzi’s largest creditor once the trail ends on the BGN 695 million state aid, the government is the least protected creditor. Public state claims come in only third on the list after secured claims and claims by the workforce. Thus the government faces joining in the scramble with more than 100 smaller creditors for the leftovers from a possible forced sale of assets. The report reveals that Kremikovtzo owns a staggering number of assets, some of them non-metallurgical or in wretched condition.
Source: Dnevnik (04.09.2009)

Bulgaria Steel Behemoth Faces Cash Hole of BGN 1 B The market evaluation of Bulgaria's obsolete steel mill Kremikovtzi is BGN 837 M, according to the appraisers' report published on the company's internet site. This amount includes long-term material assets and shares. The liquidation value or the market price for a forced sale is nearly BGN 603 M. The lands owned by the mill have the highest value of BGN 202 M while the buildings are appraised at BGN 189 M. The effective date of the appraisal, conducted by the "Amirita" Consulting Agency is September 1. The Kremikovtzi assignee in bankruptcy, Tsvetan Bankov, told the Bulgarian information agency BTA that it is obvious the mill's assets cannot cover its debts amounting to BGN 1,9 B, but failed to commit to any forecast about possibilities to sell Kremikovtzi at market value citing the global economic crisis. After the mill's creditors examine the evaluation of the assets, they would declare their final decision about capitalizing their their debts and becoming shareholders. On August 30, creditors including State owned companies such as the railroads, Bulgargaz and the National Electric Company declared their readiness to become shareholders.
Source: Darik Radio (04.09.2009)

Gazprom Wants Damages from Bulgaria Gazprom is demanding damages from all European buyers of blue fuel, including Bulgaria, the Russian edition Kommersant reported. The Russian energy giant stated it would apply the "take-or-pay" clause over lower gas consumption in Europe. Basically, this clause regulates that in case a nation does not fully consume the negotiated yearly volume, it has to pay Gazprom damages. Last week Bulgargaz CEO Dimitar Gogov announced Bulgargaz was buying less than agreed and had began negotiations to circumvent payment of damages.
Source: Standart (29.09.2009)

Previous Bulgarian deal with Gazprom filed with the Prosecutor’s Office The deal between Bulgargaz and Gazprom will be filed with the Prosecutor’s Office over alleged neglect of duty on behalf of Rumen Ovcharov, then Minister of Economy and Energy, Maria Cappone said. According to calculations of her experts, Bulgaria had been losing and would keep on losing BGN 500 million a year or a total of BGN 2 billion for the period 2007-2010. Cappone explained this is hurting the Bulgarian businesses. Back in 2006, Bulgaria signed a new gas supply agreement with Gazprom 4 years before expiry date of the 1997 contract. The base price was raised from USD 82.5 up to USD 91. A special clause was attached to the paper, envisaging that gas costs would increase on each 6 months.
Source: Standart (01.10.2009)

The pre-tax profit of Bulgarian Energy Holding (BEH) companies surge over BGN 80 million to BGN 309 million in August compared to June 2009, the holding's report for the first eight months of 2009 show. The profit rise in August compared to July was over BGN 53 million. Despite all efforts to curtail expenses, they gained 10% in August compared to July.
Source: Pari (02.10.2009)

Kremikovtzi creditors may convert BGN 944.5m claims into capital Receivables of creditors of Bulgarian insolvent steel mill Kremikovtzi who wish to convert them into shareholders' equity have been priced at BGN 944.45 million, showed a triple expert evaluation commissioned in June. The struggling steel maker will raise its capital to BGN 963 million from BGN 18.5 million, if creditors decide to convert their claims into shares at their third get-together and approve the bailout plan proposed by the receiver, Tsvetan Bankov, in the summer. If given the go-ahead, the move will lighten the share of current major shareholders Pramot Mittal and the state. The government, however, will retain its influence through its monopoly gas, electricity and railway suppliers without which the steel maker cannot operate. The pricing of claims factored in the ranking of creditors by class and collateral so that some creditors will convert 100% of their receivables into capital, other will get shares with a par equal to 5% of the value of their receivables and a third group will stay empty-handed. Bondholders will count as majority shareholder of the debt-saddled factory upon voting of the plan. Their claim is assessed at BGN 780 million, or 82.62% of all claims eligible to convert into shares. Some of the claims of gas supplier Bulgargaz, railway operator BDZ and electric company NEK will exchange for their share equivalent, another portion will get only a 5% share cover and a small part will bring the companies some losses. Bankruptcy experts commented that creditors who landed at the bottom of the priority list along with those who refused to subscribe for stocks will probably get nothing if their receivables are not secured by a pledge on assets. Indian steel giant Arcelor Mittal is in the most advantageous position as it has acquired Kremikovtzi's EUR 18 million debt to Black Sea Trade and Development Bank securing a pledge on the mill's most precious asset - a hot roll equipment whose value is sufficient to cover nearly twice the receivable. Experts argue the recovery plan itself faces three major risks that may eventually lead to asset sell-out and liquidation. The first risk entails the unwillingness of the state to reschedule its receivables and its request for their immediate payment. A new confirmation of state aid and its repayment would jeopardise the bailout as would do the slow economic recovery plunging the mill into deeper losses. Meanwhile, two big corporates have showed interest in the ailing steel maker. Dnevnik sources said the one is a EU-based company and the other is headquartered outside the bloc but both are specialised in production through electric furnaces. One of the suitors want to acquire the plant via sell-out of its assets upon liquidation and the other is open to bailout talks. The same source said the cabinet could back a recovery package only if a reliable strategic investor shows up.
Source: Dnevnik (05.10.2009)

Heat Supply-Sofia will have to return BGN 240 million to the Bulgarian Energy Holding, if the company becomes once again municipal property, said the Minister of Economy Traicho Traikov yesterday. This sum was given by the previous government to BEH for development of the heating sector. On its part BEH bought the debts of Heat Supply Sofia to Bulgargaz. Thus BEH had to acquire a stake in the heating utility, but the former Minister of Economy did not signed the documents.
Source: Monitor (06.10.2009)

The heating utility firms in the cities of Sofia, Vratsa, Pleven and Burgas may face gas cut if they do not pay their debts to Bulgargaz. I will not let the gas supply as we cannot pay in advance the gas to the Russians, said Dimitar Gogov, head of the state-owned gas monopoly. We sent letters to the heating utilities months ago alerting them about the possible gas stoppage. The total debt is over BGN 175 mln as BGN 30 mln are instantly exigible. Heat Supply-Burgas, Heat Supply-Pleven and Heat Supply-Vratsa has signed prolongations of their debts. Heat Supply-Sofia has not reached such a deal due to the change of ownership. A debt of BGN 120 mln is being extended and if the Ministry of Economy, being the owner, approves such a scheme, Sofia would have heating in the winter.
Source: 24 chasa (07.10.2009)

SEWRC is stalking us to take out license once Bulgargas turns off the gas tap, said deputy chief of Heat-Supply Vratsa - Kremen Georgiev. According to him, stopping of natural gas for Hristo Kovachki’s company is quite possible because it owes the monopolist BGN 6.6 million. The amount includes contributions to the repayment plan from 2007. Subscribers, on the other hand, owe BGN 6.3 million for heating services and although there are constantly procedures on enforcement cases, the gathering of such a large debt appears to be mission impossible. Subscribers of Heat-Supply Vratsa are 12 000, half of them have accumulated huge debt. Of these households in fact there is nothing to be seized, as by law the company cannot put hand on their only home, commented on lawyers.
Source: Standart (08.10.2009)

Bulgaria under Russian Pressure over Joint Energy Projects "Bulgaria has been ousted South Stream project" according to an Euractive headline. The website, citing prominent Russian media, reports that Russia has obtained all the permits necessaryÿto build its 'South Stream' gas pipeline through Turkish territorial waters, discarding Bulgaria as one of the project's transit countries. Taner Yildiz, Turkey's economy minister, has granted all the necessary authorisations for the South Stream project to run through Turkish territory, the Russian daily Kommersant writes.ÿ The event, which was hosted by Italian Economy Minister Claudio Scajola in Milan on Monday (19 October), eliminated Bulgaria as a transit country for the Gazprom-favoured pipeline, the daily writes. Sofia and Gazprom denied the allegations. "Bulgaria has not been informed about any intention of Russia to exclude this country from "South Stream" gas pipeline project," stated officials from the Bulgarian Energy Holding (BEH). The press center of Gazprom also denied the information, BEH says. Today experts from Gazprom got in touch with BEH representatives to specify the schedule of the working meetings in next week. According to "Komerssant" daily, Bulgaria has been excluded from "Bourgas - Alexandrouplis" gas pipeline as well. "Bourgas - Alexandroupolis" project should not be considered as closed for Bulgaria, because the information from Milan was aimed to be noticed by the Bulgarian officials, concludes Kommersant. By cutting out Bulgaria from the two gas projects - "South Stream" and "Bourgas-Alexandroupolis" Russia's PM Vladimir Putin gives an apparent answer to the new Bulgarian PM Boyko Borissov. Recently Borissov told his Russian counterpart that his cabinet needs time to consider Bulgaria's participation in the big energy projects in which Russia is involved, "Komerssant" writes
Source: Standart (21.10.2009)

Russia repeated its request to use Bulgaria's gas transportation system Russia has made a second attempt to gain control over Bulgaria's system for transportation of natural gas. Moscow has submitted information concerning the expansion of the South Stream project. This emerged after yesterday's meeting of Economy and Energy Minister Traycho Traykov and his Russian counterpart, Sergei Shmatko, in Moscow. The Russian party presented a detailed analysis of all possible options for the realization of South Stream project, including the one that regards the utilization of the now existing natural gas transit system, Mr. Shmatko said, as quoted by Russian news agencies. According to a publication of Gazeta.ru, such a move will increase the capacity of the pipeline. Exactly a year ago, the Bulgarian government turned down such a proposal from Moscow and said that South Stream should use a new infrastructure. Bulgarian experts have voiced concerns that if the transit system is full of natural gas from South Stream, Bulgaria will not be able to use alternative supplies through Turkey. The proposal of Moscow has surprised the experts in Sofia, who received it during Minister Traykov's visit to Russia and they are still to analyze it. Italian companies have shown interest in Bulgaria's NPP Belene project. This emerged after the meeting of Economy and Energy Minister Traycho Traykov with his Russian counterpart, Sergei Shmatko, in Moscow yesterday. Minister Traykov did not name the Italian companies, but only said that the interest was demonstrated during the visit of Italian PM Silvio Berlusconi to Sofia a week ago. Italy's Enel participated in the tender for the realization of NPP Belene project some years ago. Sofia's government said they would put under the hammer part of their 51-percent share in the nuclear plant. According to information of the national radio, Traykov and Shmatko did not discuss the option of Russian financing of the construction of NPP Belene. During his talk with Mr. Shmatko, Minister Traykov confirmed Bulgaria's commitment to continue working on all three projects - Belene, South Stream and Bourgas-Alexandroupolis. "Work on the realization of South Stream shall be accelerated," the two ministers said after their meeting. During the talks in Moscow, Minister Traykov was informed that South Stream would not circumvent Bulgaria, even though some segments of the pipeline might pass through Turkish territorial waters. Experts are now analyzing the technical and the economic parameters of Bourgas-Alexandroupolis, as well as the impact of the project on the environment, Mr. Traykov added.
Source: Standart (23.10.2009)

Putin: South Stream May Be Ready before North Stream Russia’s Prime Minister, Vladimir Putin, has told his Italian counterpart, Silvio Berlusconi, that the South Stream gas transit pipeline might be completed before the similar project in the Baltic. According to the existing plans, the first lot of the North Stream pipeline connecting Russia to Germany through the Baltic Sea is scheduled to be opened in 2011. At the same time, the South Stream, which also passes is not supposed to be ready until 2013. Putin and Berlusconi met in Russia to discuss the realization of South Stream in which the Italian energy company Eni is a major participant, together with the Russian Gazprom. Putin and Berlusconi also had a video conference with Turkey’s Prime Minister, Recep Tayyip Erdogan, thus repeating their three-way meeting in Turkey in August 2009. Earlier this week, Turkey allowed Russia to carry out explorations in its exclusive economic zone in the Black Sea for the proposed future route of the South Stream pipe. Reports in the Russian media said that thanks to that Russia will be able to build South Stream circumventing Bulgaria. During the video conference, the three Prime Ministers also confirmed their intention to go ahead with the Samsun-Ceyhan oil pipeline project.
Source: Darik Radio (23.10.2009)

Russian Experts Arrive for New Gas Contract The clauses of a new Russian gas supply contract will be negotiated this week in Sofia. Bulgaria's Minister of Economy and Energy Traycho Traykov has included the discussion of this issue in the forthcoming Bulgarian-Russian negotiations on expert level. Working groups will meet this week in Sofia to re-consider their views on the South Stream project. They will work on an agreement between the gas pipeline shareholders as well as on the requirements of the bid for the project's preliminary study. The new parameters of the pipeline, connected with its bigger capacity, of which the Bulgarian Minister of Energy has been informed, will be discussed at the meeting.
Source: Standart (26.10.2009)

Nabucco will be supplyed from Azerbaijan, Turkmenistan and northern Iraq The European project for supply of gas from the Middle East – Nabucco, will be filled with blue fuel from Azerbaijan, Turkmenistan and northern Iraq, said Joschka Fischer, former vice-chancellor of Germany and consultant on the project of RWE and OMV. According to him, a key year for the pipeline will be 2010, when its realization should begin. "Europe and Bulgaria in particular, should remember the gas crisis from the beginning of this year and to seek alternative sources of supply," said Fischer. So far, there are opportunities to bring gas from Iran, but there is no arrangement for the time being. The Nabucco project complements the planned Russian gas pipeline - the South Stream, because Europe will need more gas in the future. European gas pipeline will cost EUR 8 billion. Currently we estimate no appreciation of the project, the expert added. Bulgaria will provide EUR 300 million of the necessary funds, said Economy Minister Traicho Traikov. In his words, every euro is valuable in a time of crisis, but we can always find money for important things, this is why they are important, the minister said. In 2010, Nabucco enters a decisive phase, which started with the Ankara Agreement signed between the governments involved in the project and companies. Yet each country is to ratify the treaty. Half of the project to transport gas will be owned by the participants and the remaining 50% will be offered to potential investors.
Source: Dnevnik (03.11.2009)

Bulgaria ready to allocate EUR 300 M for Nabucco Bulgaria is prepared to allocate EUR 300 M for the construction of the Nabucco gas pipeline. This is a share the country has to pay as a participant in the project. The calculations are based on the fact that Bulgaria’s “cut” is 16.6 percent given the condition that the pipeline is to be financed by the partakers who pay 30 percent each, whereas the remaining 70 percent will be paid by the designing company. This emerged after the meeting between Traicho Traikov, Bulgaria Minister of Economy, Energy and Tourism and Joschka Fischer - political consultant of energy giants OMV and RWE on the Nabucco pipeline and former foreign minister of Germany. According to Traikov, every spent euro is of importance in times in crisis; however, such a crucial project justifies heavy investments. He added that so far Bulgaria has not considered an option of selling its share in the project and becoming a transitory country. During the meeting the minister has confirmed Bulgaria’s commitments in the Nabucco project and said that an intergovernmental agreement is being drafted.
Source: Standart (03.11.2009)

Heating Companies in Shumen and Vratsa are left without gas because of their debts to Bulgargas, confirmed the CEO of the gas-supplier Dimitar Gogov. Officials of both district heating companies alarmed that local subscribers, kindergartens and hospitals are left on the cold, as Bulgargas had not warned that natural gas would stop. Gogov explained that natural gas in the two cities has not been supplyer at all since the end of last winter season and that companies are aware of this since last September. ‘ We did stop and we have not resumed. Heat Supply-Pleven and Heat Supply-Burgas did a lot to reduce or at all to repay its current obligations, Vratsa remains.
Source: Darik Radio (05.11.2009)

• Oil consumption in Bulgaria will increase by 18.3 percent by 2018, a report on the market of oil and gas in the country of Business Monitor International predicts. The growth means that import volumes will increase from about 119 thousand barrels per day in 2008 to 136 thousand in the next ten years. It is expected the demand for oil in the country to rise by 2% every year, as until 2013 it will reach 124 thousand barrels per day. Natural gas consumption in the country is growing much faster than local supply, the report says. Local production could reach 1.1 billion cubic meters by the end of 2013 and demand is becoming 5.3 billion cubic meters, which requires the import of 4.2 billion cubic meters. In short term yields in the country are expected to fall from a level of about 0.3 billion cubic meters in 2008 to 0.1 billion in 2009. The reason for this is the stopped production of the depleted deposit in Galata. However, estimates in the report suggest that the yield will be recovered to a peak of 1.5 billion by 2014. The opportunity for this is the development of the gas deposit near Cherven Bryag, which has a capacity of 6 billion cubic meters. Acording to the report, the share of Bulgaria share in the gas consumption in Central and Eastern Europe (CEE) in 2008 was 0.63 percent. It is forecast Bulgaria to form 2.2 percent of the regional demand for oil in CEE by 2013. Bulgaria has minimal reserves of oil and gas, poor perspectives for production and limited competitive landscape, but this is compensated somewhat by the prudent risk factors of the country, says the report.
Source: Pari (05.11.2009)

The Bulgarian government will float between 10 and 15% of some state-run companies for trade on the local stock exchange, energy minister Traycho Traykov said. The subsidiaries headed for the Bulgarian Stock Exchange (BSE) include national grid operator NEK, gas company Bulgargaz, transmission system unit Bulgartransgaz, telecoms operator Bulgartel, etc. Minister Traykov added that in order to implement the idea, the requirements under EU’s third energy liberalisation package for independence of the operators. Thus, Electricity System Operator and Bulgartransgaz should be separated from NEK and BEH respectively.
Source: Monitor (11.11.2009)

By the middle of 2010 some of the state energy companies included in Bulgarian Energy Holding (BEH) will be listed on the Bulgarian Stock Exchange (BSE), deputy minister of economy, energy and tourism Maya Hristova said. On Tuesday the ministry rendered an account of the first 100 days in office and presented its priorities. The state is considering listing some 10 or 15% of Bulgargaz, Bulgartel and National Electric Company. The future of Kozloduy nuclear power plant, Maritsa Iztok 2 thermal power plant and Maritsa Iztok Mines, which are also part of BEH, has not been discussed. Bulgartransgaz and Electricity System Operator will not be quoted, as they will be taken out of the holding due to EU requirements. The question still under discussion is whether to list the companies individually or as a part of the holding.
Source: Pari (11.11.2009)

Bulgaria’s Economy Minister Calls for Liquidation of Kremikovtsi “The best possible option for Kremikovtsi is a procedure for the plant’s liquidation,” Bulgaria’s Economy and Energy Minister Traycho Traykov said during his report on the first a hundred days of the government. This is necessary because the plant has turned into a fake industrial structure, it has accumulated considerable debts to the state energy utility NEC (13 million levs as of August this year) and to the railway carrier BDZ. Mr. Traykov said further that the plan for the plant’s liquidation had been coordinated with the bondholders, but its implementation might take years.
Source: Standart (11.11.2009)

Traykov: The only real alternative to the Kremikovtzi is liquidation Liquidation of Kremikovtzi is the only real alternative for the plant, said Economy Minister Traycho Traykov only a day after the deadline for company's creditors to declare their position on the recovery plan. The largest private creditors rejected the possibility for recovery of the plant. The State has missed many golden chances to intervene in the fate of Kremikovtzi, said Traykov. "We were wondering why when ArcelorMittal had 30 experts in Kremikovtzi and wanted to buy the steelmaker last year, it did not happened", the minister said. Because of this, in the words of the minister, the plant has turned into "fake industrial entity", which dragged down many other companies. Since August only the metallurgical plant has accumulated another BGN 13 million debt to the National Electricity Company. BDZ transports for Kremikovtzi and expects to get money for it, but will also not receive it. Ministry of Interior guards the trains and also expects to receive money for it, but will not get such, the minister said. Because of this, the future of the plant is liquidation. "By the judiciary we will have to establish transparency, fairness and legality of the liquidation. This will be a process that will last a long time", said Minister Traykov.
Source: vesti.bg (11.11.2009)

State-owned natural gas supply monopoly Bulgargaz has announced its forecast for price increase of 18.31% in the first quarter of 2010. That makes a rise of BGN 68.49, which will push the price to BGN 442.62 per cu. m without VAT. The main reason for the hike is the more expensive alternative fuels on the international markets in the past few months. Bulgargaz's final proposal for the price revision will be announced on December 11, when it will be submitted for approval to the State Energy and Water Regulatory Commission. However, the head of the regulator, Angel Semerdzhiev, has said he will not allow rapid price jumps. In his words it is realistic to have an increase of 10 to 15% from the beginning of 2010. Meanwhile Bulgaria and Azerbaijan signed two memorandums of cooperation in the area of energy. According to them Azerbaijan will supply 1 billion cu. m of natural gas to Bulgaria a year. That will become possible after Bulgaria builds its interconnection with the pipeline from Turkey via Greece to Italy. Azerbaijan will also supply gas for the Nabucco project.
Source: Pari (16.11.2009)

Bulgaria's Minister of Economy, Energy and Tourism, Traicho Traikov, has removed the board of Directors of the Bulgarian Energy Holding (BEH), a Ministry press release announced. Traikov released the Directors after terminating their contracts by mutual consent, with no pay out offered. Boris Pekov - Chairman of Board of Directors, Tencho Popov - Deputy Chairman of Board of Directors and members of the board Galina Tosheva, Dimitar Gogov and Dimitar Dimitrov were all removed. The new Board of 3 Directors is headed by Maya Hristova - Deputy Minister of Economy, Energy and Tourism. The two other Board members are Galina Tosheva, who was re-elected as Executive Director and Dobrin Stefkin -civil servant in the State Commission on Information Security. Traikov concluded that the changes were intended to improve operational performance in the management of the Holding.
Source: Darik Radio (16.11.2009)

The European Union and Russia agreed to an "early warning" mechanism to shield Europe from potential energy supply cuts and protect consumers in the event of a repeat of last year's Russia-Ukraine gas dispute. The agreement requires both sides to notify the other of any likely disruption to supplies of oil, natural gas or electricity and to work together to resolve the problem. Third parties would also be allowed to participate, the European Commission said. "An energy crisis like the one the EU suffered in January is harmful for supply, transit and consuming countries alike," EU Energy Commissioner Andris Piebalgs said.
Source: Reuters (16.11.2009)

Bulgaria's Gas Connection with Neighbouring Countries under Question A problem has occurred with the facilities meant to interconnect the natural gas transmission system of Bulgaria with the systems of its neighbors, Greece and Romania, following a decision of Brussels to review the European plan for economic restoration, under which the project is to be financed. The problem is not with the Bulgarian party, which has submitted all necessary documents and is ready to act further - it became clear from a press conference given in Brussels by Bulgaria's Foreign Minister Rumyana Zheleva and Boyko Kotsev, permanent representative of Bulgaria in the EU. In March this year, the two joint projects were included in the plan for economic restoration. As a result, the interconnection with Greece was financed with 45 million euro and that with Romania received 10 million euro in EU funds. Normally, the EU member states may rely on as much as 1.75 billion euro financial aid for the realization of such energy project, but now this sum has been reconsidered. A decision has been taken to assess the level of readiness of the participants in the projects, Mr. Kotsev said. We will give this issue a careful consideration, as we cannot afford losing these funds, Mrs. Zheleva said on the sidelines of a meeting of the EU foreign ministers in Brussels. Bulgaria and Slovakia are fully dependable on supplies of natural gas from Russia and we are doing everything possible to prevent another gas crisis like that in January, Mrs. Zheleva said. "The meeting of the Bulgarian-Russian committee in December is expected to shed light on the development of the joint energy projects of Sofia and Moscow," she added.
Source: Standart (18.11.2009)

Minister Traykov: the state won't pay Kremikovtsi's debts "I cannot allow the debts of Kremikovtsi steelworks to be paid from the state budget," stated yesterday Bulgaria's minister of energy and economy Traycho Traykov at a discussion on the future of the bankrupt metallurgical plant. "If big state-run enterprises become Kremikovtsi's owner, they will have to pay its debts. In a situation of crisis, the National Electric Company (NEC) and Bulgargaz will have to pay off its debts to the ministry of finance. As a person responsible for the financial status of NEC and Bulgargaz, I cannot render them my support for such a decision," stated minister Traykov. Thus minister Traykov said “no” the a rescue plan which envisaged that Kremikovtsi's creditors become its owners. "Now, the discussion should be focused on what should be built in the place of Kremikovtsi," minister Traykov said further. In Traykov's opinion, the several thousand workers facing the risk of being left jobless in Kremikovtsi are the only reason that the Kremikovtsi issue is still discussed.
Source: Standart (19.11.2009)

NEK, Bulgargaz disallowed to rescue Kremikovtzi The ministry of economy will not allow National Electric Company (NEK) and Bulgargaz to transform their receivables from Kremikovtzi into shares, minister Traycho Traykov told a round table on the steelworks' future. Regardless of that NEK has filed a request to Kremikovtzi's receiver Tsvetan Bankov for transformation of a BGN 60 million debt into equity. Bulgargaz's receivables amount to BGN 80 million, including interest. The two state-owned companies have already buried a lot of money in the metallurgical plant; they cannot be expected to take over its other debts too, minister Traykov was adamant. As a person responsible for NEK and Bulgargaz's economic viability, I cannot back such a decision, said he. That will not be fair to taxpayers. Kremikovtzi's bondholders, who are the biggest creditor of the plant, have already rejected the rehabilitation plan, Traykov pointed out. The ministry of environment has warned that Kremikovtzi may be shut down any moment, because it does not have an integrated pollution prevention and control permit. Kremikovtzi's debts amount to some BGN 2 billion. Only if the company continues operating can creditors hope to get their money, receiver Tsvetan Bankov pointed out. If the plant is liquidated and the assets sold, creditors will only receive part of their money.
Source: Pari (19.11.2009)

The 18.31-percent hike in the natural gas price from the beginning of 2010 may be put off until the end of the winter. The energy regulator is preparing amendments to the gas pricing regulations to that effect. The changes have to be approved by the cabinet by this year's end. The price may stay unchanged if gas transmission operator Bulgargaz is compensated after the heating season is over, the chairman of the State Energy and Water Regulatory Commission, Angel Semerdzhiev, explained at a public discussion. That will be possible if price revisions start to be made once in six months, not quarterly. Bulgargaz will hardly be able to operate at prices below the projected 18-percent increase from January, CEO Dimitar Gogov pointed out. The revision can be corrected by some 1% by reducing the company's guaranteed profit, he added.
Source: Pari (25.11.2009)

Bulgargaz to seek BGN 30 million from clients for unused gas Bulgargaz, Bulgaria's gas monopoly, will impose penalties of BGN 25 million-30 million on business clients that have used less natural gas than initially agreed in 2009, executive director Dimitar Gogov said at a discussion of gas prices regulation. The company has not resorted to such measures so far, but it is itself facing penalties by its suppliers of Russian gas for agreeing bigger volumes. There is a "take or pay" clause in the contracts of Overgas Inc, Wintershall and Gazexport with all European companies. Some energy groups such as German E.on, Italian Eni and Turkish Botas have already requested that the condition be removed, but Russian gas major Gazprom has snubbed their proposals. "We have not breached the clause and we hope to reach an agreement with suppliers, so that we owe nothing," Gogov said. But so far the Bulgarian company has struck such an agreement only with Wintershall. Because of the crisis and a slump in production, gas consumption in Bulgaria dived by 30% year-on-year in the first 10 months of 2009. According to Konstantin Stamenov, the chairman of the Bulgarian Federation of Industrial Energy Consumers (BFIEC), gas prices should be changed once a year amid the crisis until the market is liberalised. In Bulgaria prices are higher than on the exchanges in Germany, he said. Under the contracts with Gazprom prices change every three months.
Source: Dnevnik (25.11.2009)

The Board of Directors of Bulgarian Energy Holding (BEH) have announced a reshuffle of the top management of subsidiaries Bulgargaz and Maritsa Iztok 2. Two new members – Boris Todorov and Georgi Gegov - have been elected to the Board of Directors, along with Dimitar Gogov, who has been until now the CEO of Bulgargaz. The BEH board have also decided to make changes to the senior management at Maritsa Iztok 2, appointing Jivko Dinchev, Ilko Jeliazkov and Georgi Hristozov as new members. Hristozov was, until now, CEO at Maritsa Iztok (Maritsa East 2). Two serving members of the board of management of the thermal power plant, Evgeny Stoikov and Georgi Hadjiyski, were removed from their positions.
Source: Darik Radio (30.11.2009)

The crisis hit Bulgargaz Over 1 billion cubic meters less is the consumption of natural gas this year as to the previous. This is a decrease of about 30 percent, Bulgarian Energy Holding announced. In 2008 the country imported 3.341 billion cubic meters of gas. Reasons for the decline in consumption are three. First is the shut down of Kremikovtzi. While working at full capacity, the plant spent 30 thousand cubic meters of gas per hour (about 260 million cubic meters annually). The other reasons are the interruption of supplies from Ukraine in early January this year and the smaller quantities purchased by district heating utilities in February, March and November. Bulgargaz's earnings would be BGN 500 mln down as a result. At the same time the crisis is hardly reflecting on the consumption of electricity - the decrease is only about 6%.
Source: Standart (07.12.2009)

Bulgarian gas distributor Bulgargaz saw its sales volume fall by 43% on the year in the first 10 months of 2009, hit by the economic crisis, the closure of steel mill Kremikovtzi and reduced consumption by district heating firms. The clients of the monopoly bought just 1.9 billion cu m of gas, its parent, state-run Bulgarian Energy Holding (BEH), said in a press release. Despite the weak sales, Bulgargaz made a profit of BGN 3.2 million on the back of higher prices in October. Coal miner Maritsa East, which is also part of BEH along with a number of key state-owned power assets, slashed its loss by BGN 16.6 million compared with September to BGN 1.9 million at end-October, the group said. The National Electricity Company narrowed its loss by BGN 3.4 million to BGN 14 million. BEH ended the 10 months with a profit of BGN 367.3 million, earning BGN 36.3 million in October, which is an increase of 11%. Coal-fired power plant Maritsa East 2 was the most profitable asset of the group, achieving a BGN 94.3 million profit in January-October. Nuclear plant Kozloduy reported a decrease in earnings.
Source: Dnevnik (08.12.2009)

Bulgargaz: Natural gas to hike by 17% in first Q3 of 2010 Bulgargaz proposed the State Energy and Water Regulatory Commission (SEWRC) to approve price of the natural gas for the first Q3 of 2010 at the amount of BGN 437.80 per hm3 without VAT. The hike by BGN 63.67 per hm compared to the present price is a result of the higher over the last months prices of the alternatives of the natural gas fuels at the international markets, the Bulgargaz announced. In compliance with the requirements included in the Natural Gas Act Regulation, Bulgargaz daughter company of Bulgarian Energy Holding issues every three months a proposal, which summons to the SEWRC, on approving selling price of the natural gas.
Source: Monitor (10.12.2009)

Financial Crisis Drains South Stream Some Russian experts have voiced serious concerns regarding the implementation of Gazprom's largest energy projects in Europe – South Stream and North Stream pipelines. South Stream, which is planned to pass through Bulgaria, will have a throughput capacity of 63 cubic meters of natural gas per year, and North Stream's throughput capacity will be 55 million cubic meters of natural gas a year. Russian sources estimate South Stream at 25 billion euro. However, the global financial crisis has caused the consumption of natural gas to shrink and the prognosis for the next five years predicts a difference of 200 billion cubic meters between the global supply and demand of natural gas. This makes some Russian experts think that Gazprom is already experiencing economic difficulties. Given the changeable financial situation in the world, hardly anyone could forecast the economic efficiency of the two pipeline projects. For example, the Russian Institute on Globalization and the Human Condition has criticized Gazprom's South and North Stream projects as economically ineffective. According to Mr. Vasily Koltashov, head of the economic studies center with the institute, Gazprom will postpone the construction of the pipelines, because 2010 is expected to be a very difficult year for the company. It is obvious that the suppliers and producers have been the hardest hit by the global economic meltdown. Being a producer, Gazprom has not yet experienced the worst effects of the crisis and has not given up on its large scale projects, but in 2010-2011 the company will probably announce that the implementation of these projects has been postponed. The falling demand for natural gas on the global markets is another prerequisite for such a decision and it is also the main cause of Gazprom's problem. Is "South Stream' project advantageous to Bulgaria? Mr. Koltashov commented the words of Gazprom's official representative Sergey Kupriyanov that Bulgaria should not bargain on 'South Stream'. "Gazprom's objective is simple - to maximize its profit and to spend as less as possible on transit. In this sense, of course, Russia is interested the agreement to contain the most favourable clauses to 'Gazprom', while transiting countries also would like the transit to be advantageous to them." Under these circumstances are "South Stream' and 'North Stream' gas pipeline projects effective? At least the dynamics of global economy and the quickly changing situations compel a careful assessment of the perspectives, especially today, when this question will be determined at the sittings of the Bulgarian-Russian commission in Sofia.
Source: Standart (10.12.2009)

Revelation For Musty Problems with Russia A time has come for clarification in the Russian-Bulgarian relations. All things will be put to their places at the sitting of the Russian-Bulgarian intergovernmental commission which will take place today and tomorrow in Sofia. The discussions will determine the future of not only a couple of projects but also most probably the relations between the two states in the next few years. The key topics will be of course the three joint energy projects - Belene NPP, South Stream and Bourgas-Alexandroupolis. Last week Russia's Minister of Energy Production, Sergei Shmatko while conversing with Russian MPs hinted that the big problems would most probably arise in lines with the petrol pipe-line project Bourgas-Alexandroupolis. As for South Stream, he assured them that things were going smoothly and the project needed only intensified negotiations on corporate level. Referring to Belene NPP, Shmatko said that Russia could perceive potentials for development despite RWE's withdrawal from the project. For sure, the themes South Stream and Belene NPP would not be just mentioned at the talks in Sofia, especially when the Russian delegation is led by Shmatko himself. Obviously the Russians got tired of insisting before the new Bulgarian Government on more clarity whether the joint projects will be continued or not. This time the Russians come to Bulgaria to get concrete answers. Apart from the hot topics of energy production, the two-day talks will have to see to solving other issues. Some of them are the schemes for pension paying of Russians living in Bulgaria and of the veterans from the World War II. It is expected that the decades-long dispute over Bulgaria's licence to produce Kalashnikov automatic guns will be solved. The sittings on Thursday and Friday are expected to bear not only trouble but cooperation as well. Experts from Moscow are expected to present the Russian achievements in the spheres of IT and nanotechnologies. Another stale problem which might be solved at the discussion is the facilitation of visa issuing for Russians traveling to Bulgaria. It is still unclear to what extent Bulgaria could benefit from the solving of each of these problems. Both sides have their argumentation. The question is who will make a better use of them.
Source: Standart (10.12.2009)

Moscow Offers to Pay Bulgaria's Share in Bourgas-Alexandroupolis Russia is ready to pay Bulgaria's share in the Bourgas-Alexandroupolis oil pipeline, it transpired a day after Russian media informed that Moscow would offer a loan to Bulgaria to finance the country's share in Belene NPP project. Bulgaria has not paid yet 5 million euro to the International company Trans Balkan Pipeline (TBP) that will build Bourgas-Alexandroupolis pipeline. "We cannot pay our share in the project as currently we don't have enough money for the Bulgarian kids," Bulgaria PM Borissov recently commented. "To avoid any problems with the payment delay Russia is ready to provide a loan to Bulgaria, while Bulgaria will pay it off later," TBP president Alexander Tarakanov said. Mr. Tarakanov is in Bulgaria for the negotiations of the intergovernmental commission of Bulgaria and Russia. The negotiations are held in Sofia December 10-11. As to this moment, the cost of Bourgas-Alexandroupolis project is estimated at about 1.5 billion euro as the investment will pay back in at least 12 years.
Source: Standart (11.12.2009)

Heating prices might go up by 7-8% as of 1 January 2010 because of the forthcoming increase in natural gas costs. This is what the chairperson of the State Energy and Water Regulatory Commission (SEWRC) Angel Semerdzhiev announced. Bulgargaz said a week ago it had to put up gas prices by 17.02% to BGN 437.80 per 1, 000 cubic meters (VAT not included) because of the rise in the costs of alternative oil fuels.
Source: Sega (16.12.2009)

Bulgaria’s troubled fertiliser maker Chimco will resume operations in October or November 2010, the plant’s new owner, construction entrepreneur Nikolay Galchev, told Dnevnik. The businessman said his holding company Galchev Engineering Group as acquired the plant, which has been dead for a few years, from Novo Chimco around five months ago. Quoting a commercial secret, Galchev was mum about the financial details of the recent transaction. He revealed an agreement has been reached with the government, including a reschedule of the plant’s debt, Galchev said. Payments are scheduled to begin in May 2010. In end-2007, Novo Chimco got hold of the facility after paying BGN 85.7 million, the amount t it owed to its creditors. The businessman said he is negotiating with seven or eight candidates, mostly foreign companies, seeking a strategic gas supply partnership. Separate talks are underway to secure markets for the plant’s core produce of carbamide and fertilisers. Galchev will stick to the rescue plan for the facility that has got the nod of the government. Asked about the possible scenarios if the plant failed to come back to life in October, Galchev he “don’t dare even think about it.”
Source: Dnevnik (18.12.2009)

Gas rates to rise over 15% Bulgaria’s energy watchdog has proposed a 15.61% increase in gas prices charged by state-run company Bulgargaz. The rise will be debated on Monday together with a proposal to raise heating tariffs by between 9.4% and 11%. The proposals are grounded on the soaring oil and black oil prices on international markets. Bulgargaz requested a 17.02% hike to BGN 437.80 per 1,000 cubic metres. Earlier this week Angel Semerdjiev, chairman of the State Energy and water Regulatory Commission (SEWRC), said the rise could be trimmed to 14% if the firm gave up its 3% mark-up. The regulator has proposed shaving the mark-up to up to 2%, with a possible adjustment to account for thinner revenue.
Source: Dnevnik (18.12.2009)

Bulgaria’s metal industry slams upcoming gas spike Bulgaria’s metallurgical industry criticised the gas price formation mechanism and warns that plans to jack up rates might squeeze production further and even force some companies to idle capacities. The Bulgarian Association of the Metallurgical Industry (BAMI) -- which brings together the market’s major metal manufacturers including Promet Steel, Aurubis Bulgaria and Intertrust Holding -- said in a statement the current prices are nontransparent, unjustified and totally unpredictable. State-run gas company Bulgargaz is seeking a 17.02% increase in wholesale tariffs to BGN 437.8 per 1,000 cubic metres. The State Energy and Water Regulatory Commission (SEWRC), the country’s energy watchdog, has come up with a proposal for a 15.61% rise to BGN 432.54 per 1,000 cubic metres. It is due to make a final decision at its session today. The metal industry uses around 25% of Bulgaria’s natural gas supplies, with gas one of its major costs.
Source: Dnevnik (22.12.2009)