Russia guarantees gas supplies to Bulgaria Russia guarantees gas supplies to Bulgaria and the Balkans, became clear after a meeting between Minister of Economy, Energy and Tourism, Traicho Traikov, and his Russian counterpart, Sergei Shmatko. Traikov is on a visit to Moscow and the Bulgarian governmental delegation is headed by Deputy Prime Minister Simeon Djankov. Russian gas supplies to the region were reduced due to the increased consumption as a result of the bad weather in Europe. “There will be no problems with the delivery of the ordered quantities for Bulgaria and the other European countries,” assured Shmatko. The two ministers attended the work of the joint Bulgarian-Russian Commission for Economic, Scientific and Technical cooperation. Traikov and Shmatko also discussed the development of the Belene NPP project and the construction of the South Stream gas pipeline. The contract for building a second nuclear power plant in Bulgaria expires at the end of March and the financial consultant on the project is still analysing the profitability of the project. Another meeting for the construction of the South Stream gas conduit is expected to be held in Sofia by the end of this month with the participation of Alexey Miller, CEO of Gazprom. Shmatko added that Russia was determined to build the gas pipeline, regardless of the development of relations between Moscow and Kiev. The two ministers also discussed the possibility of extending the service life of units 5 and 6 of the Kozloduy NPP. Their modernisation cannot be made without the participation of Russian companies because they have produced the generators. The order for the evaluation of the remaining service life of the units was won by a Russian-French consortium, including the companies Electricite de France and Rosenergoatom. It is not clear whether the construction of the Burgas-Alexandroupolis pipeline was discussed during the visit. (Klassa)
Source: Duma (08.02.2012)

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

Bulgargaz SPJSC demands a 27% increase in natural gas prices as of April The state-owned company Bulgargaz SPJSC demanded a 27% increase in gas prices as of April 1, announced the company during the presentation of its forecasts. The shocking increase is predetermined by the oil price hikes on the Mediterranean market, as well as the higher dollar exchange rate to the Euro. If the forecast of Bulgargaz is approved by the State Energy and Water Regulatory Commission (SEWRC), as of April, natural gas prices will increase by BGN 166.27 per 1,000 cu m to BGN 786.43 per 1,000 cu m. A similar price hike will inevitably raise the price of domestic heating by at least 20% on average. An additional reason for higher fuel prices is the fact that Bulgargaz SPJSC must restore its reserves of natural gas in the gas repository near the village of Chiren. The fuel stored there is only used in the winter season to cover domestic consumption and, this year, the gas volumes used are larger than usual because of the cold weather. Bulgargaz representatives demanded a 17% increase of natural gas prices as of January but SEWRC estimated that the hike should be no more than 5% in order to prevent an increase in the price of domestic heating. Bulgargaz maintained that the regulations of the Commission resulted in the poor financial condition of the company. The company will submit its final request for an increase in natural gas prices on March 9. So far, SEWRC has never accepted the company's arguments and has striven to limit substantially the price hikes. Meanwhile, Sofia DHC (District Heating Company) announced that January's heating bills for Sofia residents will be 17% higher month-on-month. The reason is the cold weather, especially at the end of January, when the average daily temperature reached minus 13 degrees. The company added that 65% of their customers will receive heating bills of less than BGN 150.
Source: Class (13.02.2012)

The price of natural gas and central heating to increase as of April 1 The price of natural gas and central heating will rise as of April 1, but analyses are still being drafted with regard to the actual price increase, stated yesterday Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC). He explained that the Regulator will certainly not approve the price increase of 27% which Bulgargaz SPJSC has demanded. The prices of natural gas in our country are mostly affected by the level of oil prices on Mediterranean markets. However, these have returned to their peak values ??of 2008. This will be the main reason for the increase in natural gas prices in our country as of April, rather than the fact that Bulgargaz SPJSC has used large quantities of gas from the repository near the village of Chiren. Another reason for the price hike will be the increase in the exchange rate of the dollar to the Euro over recent months. Semerdjiev praised the gas provider and the transmission gas operator Bulgartransgaz SPJSC for coping successfully with the crisis situation two weeks ago when gas supplies from Russia were reduced. During the summer, Bulgargaz must restore the reserves in the Chiren repository, but should also consider how to do this and at what prices in order to avoid raising prices further, said Semerdjiev. According to him, the financial situation of Bulgargaz has improved in 2011, year-on-year. The supplies of natural gas have been restored to their normal volume as of last week, stated Minister of Economy, Energy and Tourism, Traicho Traikov. Because of the expected price increase, he added that the fluctuations of gas prices on international markets cannot be controlled by Bulgaria. The amendment of the contract for natural gas supply from Russia, implemented by the former Energy Minister Rumen Ovcharov, has, so far, cost Bulgaria BGN 2 bn, reminded Traikov. The price of central heating and hot water will increase as of April 1, which is inevitable, added SEWRC. The prices of heating utilities were maintained for the winter season, but the companies' reserves have been depleted and an increase in the heating service price must be allowed, commented Semerdjiev. The Commission failed to specify what the price hike of natural gas and central heating will be. Usually, Bulgarian heating prices be
Source: Class (15.02.2012)

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

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

Bulgargaz has no funds to refill the Chiren repository. Heating problems expected next winter season The difficult collection of Bulgargaz receivables and the lack of fresh cash flow, puts under question the provision of sufficient amounts of natural gas for the next heating winter season, stated before Klassa daily, Dimitar Gogov, CEO of the company. He explained that the district heating companies (DHCs) in Bulgaria were the main debtors of the company, while currently, Bulgargaz does not have enough funds to purchase gas to be compressed into the Chiren gas repository. Thus, if our only gas storage facility remains without gas reserves, over the next winter, Bulgaria would have to rely solely on gas supplies of Russian gas, whereas the current gas delivery contract expires at the end of this year. Our other gas sources are the gas fields in the Black Sea, but they cannot meet the domestic demand, considering that the gas yields thereof are declining Bulgaraz has already raised the problem for consideration before the Bulgarian Energy Holding and the Sofia Municipality, which holds the Sofia District Heating company. At present, the company owes current liabilities of BGN 175 mln to Bulgargaz and without these funds the public provider cannot purchase enough natural gas to be compressed in the Chiren repository, explained Gogov. According to him, over the next three months, the gas repository must store about 350 mln cu m of gas. In fact, the problems with the repayment of the Bulgarian DHC's debts has been going on for years, while recently Bulgargaz manages increasingly hard to cover its expenditures. As a result, for this purpose, last year the company borrowed a loan worth up to BGN 60 mln. The difficulties of public provider are actually not caused by regulations of the SEWRC (State Energy and Water Regulatory Committee), but as result of its failure to collect its receivables from the indebted DHCs, added Gogov. The company has already forecast that the cost of natural gas in our country must increase by nearly 27% as of April 1, due to the high price of gas oil and fuel oil offered at the Mediterranean markets. The company will submit its final request for consideration in SEWRC this Friday.
Source: Class (06.03.2012)

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

Bulgargaz demands some 26% price increase of natural gas The state-run Bulgargas has demanded today a 25.78% price increase of natural gas as of April 1. If this proposal is accepted, the price of the fuel will rise by almost BGN 160/1,000 cu m to BGN 780.06/1,000 cu m. The demanded price increase is due to the higher prices of gas oil and black oil on international markets, the exchange rate of the Bulgarian lev against the US dollar and the suppressing of natural gas priced on the part of the State Energy and Water Regulatory Commission (SEWRC) so far. According to SEWRC’s statement on Tuesday, there are no grounds for the price of natural gas to increase by more than 7-8% as of April. The price hike will also affect increase will the price of hot water and central heating. The gas operator Bulgartransgaz has called a public procurement tender for the supply of technical equipment for the construction of the interconnection gas pipeline Russe - Giurgiu. The estimated cost of the contracts is between BGN 300,000 and BGN 7 mln. The offers of candidates will be accepted until March 26.
Source: Class (09.03.2012)

A drastic price increase in natural gas and heating expected as of April 1 due to high oil prices As of April 1, natural gas prices will increase more than the previously projected 8%. This became clear from yesterday's statement of the Chairman of the State Energy and Water Regulatory Commission (SEWRC), Angel Semerdjiev. Unlike other times, he refused to comment on the expected price hike. However, he acknowledged that oil prices have reached record-high levels on international markets, while the projected cheaper quotes have failed to materialise. Another reason for the shocking increase is that the US dollar exchange rate to the Euro has also increased. These are the two main parameters which determine gas prices in our country. The state-owned Bulgargaz SPJSC has already requested a price increase of 25.78% as of April 1. If this proposal is adopted, the price of natural gas in Bulgaria will rise to BGN 780.06 per 1,000 cu m, VAT excluded. The expected price increase will be BGN 159.90 more than the current price. So far, no case has been reported in which the State Energy Regulator has accepted completely the proposal of Bulgargaz but, last year, SEWRC approved the gas price increase of some 20%. Currently, the proposal submitted by the gas company is being analysed and, within two weeks, the estimated price increase is expected to become clear, explained Semerdjiev. Furthermore, SEWRC explained that, next month, subscribers will inevitably face a price hike in heating and domestic hot water. It will be caused by the expected drastic price increase in natural gas because all district heating utilities are gas-operated. The National Electricity Company (NEK) has not yet rescheduled the disbursement of its loan of ˆ250 mln owed to the French BNP Paribas. The loan was borrowed for the construction of NPP Belene and the principal is due to be paid in May. NEK representatives are holding negotiating with the French bank and, last month, the head of the company, Mihail Andonov, stated the talks were already coming to an end. The disbursement of the loan is expected to be deferred for one year and SEWRC must approve the extension of the deadline.
Source: Class (14.03.2012)

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

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

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

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

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

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

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

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

EU to help us supply gas through Georgia Bulgaria will seek assistance from the EU on the diversification of natural gas supplies from Azerbaijan through Georgia, announced Prime Minister Boyko Borissov during his official visit to Tbilisi. The PM will present the opportunities of this to the EU President Herman van Rompuy, during his visit to Sofia in April this year. "During the talks, we will pose the question about the financial and technical assistance from te EU on the project," Borrisov said. He deemed the answer would show whether Europe is really striving for diversification or not. In the PM's words, this possibility represents a geostrategic project that also has to do with our relationship with the "great powers" and it would be impossible to implemented it without their consent. "These countries have already settled the issues with Russia separately through the Nord Stream and the South Stream. Therefore, it is not so indispensable to enter into complex negotiations for any of them," added Borissov. In fact, the project implementation depends on the possibility for Georgia to provide natural gas supply from Azerbaijan to the Poti port, the PM considered. The blue fuel compressed there would be transported to Bulgaria in containers. "Within 2 years, we could build a port because we have already drafted a pre-feasibility study of the Oil Terminal of Burgas city", explained he. The Georgian side also considers that their part of the project can be implemented within 2 years. The transmission of liquefied natural gas to Bulgaria through Georgia will cost us billions of levas, expressed skepticism toward the idea the former energy minister Traicho Traikov berfore bTV. In his words, Bulgaria has been working on the project for the compressed natural gas supply since 2009, while Romania decided to deliver liquefied gas from Azerbaijan through Georgia. According to Traikov, there are differences in the gas volumes, which can be transported by ships. "In fact, the compressed natural gas can be delivered in lower amounts, but the construction cost of liquefaction and regasification stations is extremely expensive and Bulgaria cannot afford itself to pay that price," explained he.
Source: Class (04.04.2012)

A debt of BGN 7.2 bn accumulated by state-run companies State-run companies have accumulated a total of BGN 7.2 bn in debt, which is a jeopardy to the stability of the Bulgarian economy, Georgi Angelov, senior economist at the Open Society Institute, pointed out at a discussion called ‘The Economic Situation 2012’. According to him, the liabilities of state-owned firms are a serious obstacle to the development of the country’s economy because most of them hold a dominant position on the domestic market and if these fall into insolvency, the State has to repay debts. Presently, however, the Government has no free resources to operate in such a situation, explained the economist. The National Electric Company (NEK) is the top debtor with aggregate liabilities of BGN 2.17 bn, followed by the National State Railways (BDZ) and the Kozloduy NPP, whose debts amount to BGN 767 mln and BGN 750 mln, respectively. Thus, the liabilities of these three state-run companies alone exceed BGN 3.68 bn. Debts over BGN 0.5 bn have also been accrued by Maritsa Iztok Mines – 2 (BGN 648 mln) and the Sofia Central Heating Utility (BGN 548 mln). The other big debtors with liabilities exceeding BGN 100 mln are: Sofia Airport (BGN 150 mln), Bulgartransgaz (BGN 107 mln), the Sofia Public Transport Company (BGN 164 mln), Port Infrastructure (BGN 175 mln), Maritsa Iztok Mines (BGN 209 mln) Railway Infrastructure (BGN 213 mln) and Bulgargaz (BGN 341 mln). According to Angelov, some financial institutions, such as Municipal Bank PLC and the Bulgarian Development Bank, also have sizable liabilities. However, the structure of banks’ receivables is different and the liabilities of these two financial institutions, amounting to BGN 2.15 bn, are actually reported as attracted funds, specified the economist. According to him, a public register is needed for monitoring these debts. Angelov pointed out that according to data from the end of January 2012, Bulgaria’s aggregate public debt stood at BGN 11.68 bn, out of which BGN 4.92 bn was internal debt. Economists warned that over the next eight or nine months, Bulgaria should repay a total of BGN 3 bn in debt settlement for bonds and deficit. According to Lachezar Bogdanov, Managing Partner at Industry Watch, the Cabinet has to introduce a balanced budget. “Had that happened a year ago, we would not be wondering now how to find BGN 1.6 bn for paying the bonds maturing in January 2013. Bulgaria’s revenues from privatisation are low, its reserves have decreased and it is not clear who will lend us this money,” Bogdanov stated. Dimitar Chobanov, economist and professor at the University of National and World Economy, said that the Government could not raise these funds on the domestic market. A few days ago, the Finance Ministry issued government securities worth BGN 50 mln, but bonds worth only BGN 42 mln were purchased because investors seek higher returns, which the Bulgarian bonds cannot yield. According to Chobanov, seeking financial assistance from the IMF is a realistic option, despite the negative effects which such funding could have. Georgi Angelov also commented on the issue of resorting to the money from the so-called Silver Fund. The decrease of the fiscal reserves from BGN 12 bn in 2008 to BGN 4.5 bn in 2012 is among the main economic problems in Bulgaria. He expressed concern that if money for future payment of pensions was set aside, the fiscal reserve would decrease from BGN 4.5 bn to some BGN 2.5 bn. However, this money cannot be used because of Bulgaria’s commitments to the European Union. Thus, Bulgaria will practically remain without any reserves, the economist pointed out, specifying that such steps would position our country at the bottom in the European Union in terms of amount of reserves.
Source: Class (09.04.2012)

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

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

Nabucco pipeline route to be shortened three-fold The route of the Nabucco pipeline may be shortened three-fold. It may be reduced to 1,300 km, given that the pipeline was initially planned to be 3,900 km. This became clear after the Nabucco consortium presented its revised proposal - the Nabucco West project to the consortium developing the Shah Deniz 2 gas field in Azerbaijan, announced officials from the project company in charge of the implementation of Nabucco in the EU project. The pipeline is planned to start from the Caspian Sea and to pass through the Turkish - Bulgarian border, Bulgaria, Romania, Hungary to the Central European Gas Hub in Baumgarten, Austria. "This version of the project would have cost around ˆ1 bn to the six companies," stated in a press release Reinhard Mitschek, Managing Director of the Nabucco Gas Pipeline International GmbH. The consortium has the task of transporting Caspian gas from the Bulgarian-Turkish border to Baumgarten, Austria and there onto other European markets. RWE (Germany), OMV (Austria), MOL (Hungary), Bulgargaz (Bulgaria), Transgas (Romania) and Botha (Turkey) are shareholders with equal shares in the Nabucco Gas Pipeline International GmbH. The value of the facility, debated so far, is in the range of ˆ8-15 bn. Gas transit from Iraqi Kurdistan through Turkey via the Nabucco West pipeline will be discussed at the meeting of the Prime Ministers of Bulgaria and Turkey - Recep Tayyip Erdogan and Boyko Borissov in Varna, in the Euxinograd residence, according to a statement of Mohammed Khalaf, Arab journalist and correspondent of the Al Watan newspaper, on the Bulgaria On Air television. The meeting coincides with the visit of the Prime Minister and Minister of Foreign Affairs of Qatar Sheikh Hamad Bin Jassim Bin Jabr Al-Thani to Bulgaria.
Source: Class (18.05.2012)

Dobrev: We hope to find considerable deposits of natural gas in the Black Sea I hope that we will find considerable deposits of natural gas deep in the Black Sea, stated Delian Dobrev, Minister of Economy, Energy and Tourism, yesterday on BNR (Bulgarian National Radio). "Bulgaria should not quarrel with Romania over the gas deposits. We have our own perimeter, while they have their own," stated Dobrev. He reminded that some 40 bn cu m of gas were discovered in the Romanian block, while we have just started seeking gas in the Black Sea. "Our perimeter, which we have yet to explore, is greater than the Romanian one," stated Minister Dobrev. It is actually 15 km away from our border. The evidence for solid deposits in our block is the great interest expressed by at least five international companies, which have purchased the application documents and are preparing to participate in the bidding contest, including OMV, Shell, Total, Melrose and others. June 17 was set as the final deadline for the interested companies to submit their offers for exploration and extraction of conventional gas, reminded the Minister. "Within a month, we will manage to evaluate the project proposals. By mid-summer, we must select a company to explore the gas opportunities in the Black Sea," summarised Dobrev. Next year, the first gas drilling will take place, predicted the Minister. The exploration period usually lasts several years, while the first gas yield is expected as early as 2-3 years. "There will be a gas connection between Bulgaria and Turkey. As early as this week, we will set up a project company, in which the Bulgarian part will be represented by Bulgartransgaz, while on the Turkish side, perhaps there will be a private company," said also the Minister of Economy, Energy and Tourism. It will carry out research and draw a roadmap. According to him, construction itself could happen by the end of 2014, but the question is when the gas connection can become a viable alternative. "In 2018, gas production in the Caspian region will be launched. It will amount to some 17 bn cu m, out of which 6 bn cu m have already been earmarked for Turkey," explained Dobrev. A total of 10 bn cu m of gas will be transmitted to the EU under the Nabucco project."
Source: Class (21.05.2012)

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

Parliament supports the Nabucco pipeline All political forces in Parliament voted "for" the ratification of the agreement supporting the Nabucco project. Only one MP abstained from the voting. The document regulates the relations under the project between Bulgaria and the international company in charge of building the pipeline - the Nabucco Gas Pipeline International Ltd, and the Bulgarian representative in it - Nabucco Gas Pipeline Bulgaria Ltd. The agreement stipulates rules for investing, operation and use of the pipeline. It specifies the procedure for resolving disputes as well. In late April, the Bulgarian Government announced the Nabucco pipeline as a site of national importance. Bulgaria, Austria, Hungary, Romania and Turkey signed an intergovernmental agreement on July 13, 2009. A year later, it was ratified by our Parliament with the support of all political forces. The first stage of Nabucco should be put into operation until 2015 and, by 2020, the facility should start operating at its full capacity. Now, the year 2018 is being indicated as the deadline for the launch of the pipeline. According to the initial estimates, the Nabucco pipeline should cost about ˆ7.9 bn. The delay of the project has increased its price to around ˆ15 bn, according to expert evaluations. The pipeline has to deliver Caspian, Iranian and Egyptian gas via the territories of the countries which participate in the project. The complicated political situation in Iran so far excludes the option for the pipeline to be filled with gas from there. At this stage, the main source of natural gas is the Shah Deniz 2 gas field in Azerbaijan. The project company in charge of the construction of the Nabucco pipeline was set up in 2004. OMV (Austria), MOL (Hungary), Transgas (Romania), BOTA (Turkey) the Bulgarian Energy Holding and German RWE are shareholders in the project company. German RWE announced that it may withdraw from the project, but no final decision has been made so far. Hungarian MOL is considering its withdrawal as well.
Source: Class (23.05.2012)

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

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

Just before the active summer season Burgas was left without hot water due to debts to the gas supplier Bulgargaz. The Vratsa water supply utility is in a similar state. The residents of the capital could also have been left without hot water as Toplofikatsiya Sofia is the third water supply utility with unpaid debts to Bulgargaz. Toplofikatsiya Sofia has promised that they would transfer BGN 6 million to Bulgargaz by the end of the week to wipe out their debts. As for the Vratsa water supply utility, it transferred BGN 850,000 on Tuesday. “We have no problems with the money for the energy produced. We have business relations with CEZ, not with NEC,” Mr. Kremen Georgiev, Deputy Manager of the company, said.
Source: Standart (06.06.2012)

State-owned gas supplier Bulgargaz needs to collect overdue payments amounting to over BGN 200 M from four heating utilities and three or four industrial companies, according to Bulgargaz CEO Dimitar Gogov. In a Wednesday interview, Gogov made clear that the gas firm had filed lawsuits for another BGN 300 M, meaning that the total sum Bulgargaz expected to receive was around BGN 500 M. He said that the heating utilities in Sofia, Burgas, Vratsa and Pleven were the biggest debtors, adding that there were heating utilities that were very regular payers, like the ones in Plovdiv, Varna, Razgrad and Ruse. "How come some heating utilities pay their bills and never delay the payment of even a single lev," Gogov inquired. "At present, Bulgargaz does not have a single lev of free financial resources to lend to support the activities of any consumer," he noted. He did not exclude a suspension of gas supplies to the indebted heating utilities, meaning that the cities could be left without hot water in the summer. Citizens of Burgas were left without hot water on Tuesday after the local heating stopped operations due to the suspension of natural gas supplies from Bulgargaz over a debt of around BGN 4.5 M.
Source: Darik Radio (07.06.2012)

The price of natural gas sold by state-owned supplier Bulgargaz will probably increase from July, according to Delyan Dobrev, Bulgaria's Minister of Economy, Energy and Tourism. Speaking Monday, he explained that the forthcoming price hike with the US dollar exchange rates and the prices of oil derivatives. Dobrev did not specify the extent of the price increase. "You know that the price of gas is determined on the basis of prices of oil derivatives for the past nine months and the value of the US dollar. During this nine-month period, the US dollar was on the rise. There was also an increase in average prices of oil derivatives, which rather spells an upward trend for prices of natural gas. The exact amount of the increase will be announced by (Bulgargaz CEO) Gogov," Dobrev noted. Later on Monday, the State Commission for Energy and Water Regulation (DKEVR) will summon a meeting of a consultative council to discuss the gas rates. The meeting is expected to shed light on the gas price increase that will be requested by Bulgargaz. The amount of the gas price hike will most probably not include the 11% discount that was supposed to enter into force on April 1 because the agreement with the Russian side has not been signed due to new clauses related to the implementation of the South Stream gas pipeline. "There are open questions about South Stream that have not been settled among the shareholders in South Stream Bulgaria. The issues have to be settled before we make a solid commitment to make the final investment decision by November 15, 2012. As soon as we settle these open questions and we sign the commitment, we shall get the 11.1% discount calculated retroactively from April 1. The price reduction amounts to some USD 115-120 M. What I mean to say is that we shall sign the additional agreements for the discount when we have achieved clarity on the open questions surrounding the project," Dobrev stated.
Source: Capital (12.06.2012)

Bulgargaz demands a 15% price increase of natural gas as of July 1 Bulgargaz has demanded a 15.73% price increase of natural gas as of July 1, 2012 in its application to the State Energy and Water Regulatory Commission (SEWRC), deposited through the Bulgarian Energy Forum on Tuesday. The gas company insists on a price hike of BGN 109.95 per 1,000 cubic meters of natural gas - from BGN 699.10/1,000 cu m to BGN 809.05/1,000 cu m, VAT and excise duty excluded. Bulgargas has pointed out three reasons for the demanded price rise. The first one is the stronger US dollar in Q2 2012 – BGN 1.47728 for $1 – and the expected higher exchange rates in Q3 2012 – BGN 1.55158 for $1. The second reason is “the wrong parameters in SEWRC’s report when setting the price of gas for the second quarter of the year and the actual necessity of higher proceeds than those received at the approved price of BGN 699.10/1,000 cu m, VAT and excise duties excluded,” read the notice posted on the company’s website. The third reason is the need to accumulate and store a reserve of 148.5 million cubic meters of gas in the Chiren depository for the next heating season. “In case this is postponed (which could increase the risk of insufficient supply in the winter of 2013), the marginal price will be BGN 766.73/1,000 cu m, VAT and excise duty excluded,” the gas monopoly warned. “The price increase of natural gas will have an adverse effect on the Bulgarian economy,” said Vasil Velev, Chairman of the Bulgarian Industrial Capital Association. He voiced his hope that SEWRC will not approve such a high price increase of natural gas. “If the price is the same for everybody, it does not lead to loss of competitiveness. The problem is that the price of gas in our country is not at all low. And its increase is accompanied by higher electricity prices as well. At a time of a resuming crisis, this is not good news for Bulgarian businesses,” commented Velev. He predicted that, during the next quarter, we will witness an even worse performance of the Bulgarian economy.
Source: Class (12.06.2012)

SEWRC Chairman, Angel Semerdjiev: Natural gas prices will increase by up to 5% as of July 1 Even if Bulgaria fails to sign the agreement with Russia for the 11.1% reduction of the wholesale price of natural gas, the price of the blue fuel will rise by a minimum amount as of July 1 in order not to affect heating prices, stated Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC) on Tuesday. "We determined that in case of a 5% increase in gas prices, heating prices will not change. In the next stage, if this accumulation becomes more than 5%, the correction will be necessary because district heating companies operate with minimum revenues. In order for them to continue to operate, the change in natural gas prices must be taken into account,'' explained the mechanism the Chairman of SEWRC. The specific growth rates in gas prices will be determined when we see the signed contracts, said Semerdjiev. "Should the gas supply in definite contracts be reduced to this percentage, a very similar effect will be obtained in the final gas price. Of course, without considering the uncollected income of Bulgargaz, which continues to rise since the beginning of the year", added he. According to the Head of SEWRC, the reductions will not differ essentially from the 11% decrease. On Monday, Bulgargaz announced that the company demanded from the Regulator a 15.73 % increase in gas prices, which will result in a gas price of BGN 809.05 per 1,000 cu m, excise duties and VAT excluded. Currently, it is traded for BGN 699.10 per 1,000 cu m, both taxes excluded. "Every 3 months, Bulgargaz demands an increase of 20%. This time, it requires a more modest hike of 16%," stated on BNT (Bulgarian National Television), Minister of Economy, Energy and Tourism, Delian Dobrev on the occasion of the consequent proposal for a drastic increase of the blue fuel price. According to the Minister, the gas market must be liberalised in order to admit new players, thus decreasing gas prices. Dobrev predicted that gas prices will drop when we start to encourage domestic gas supply.
Source: Class (13.06.2012)

Bulgaria's Heavy Industry Alarmed by Looming Gas, Electricity Price Hikes Heavy industry companies will not survive the anticipated increase in prices of electricity and natural gas from July 1, according to Politimi Paunova, Chair of the Bulgarian Association of the Metallurgical Industry (BAMI). In a Tuesday interview, Paunova noted that the need t inject gas supplies into the Chiren underground gas storage could not be an excuse for the huge gas price increase. She went on to say that state-owned gas supplier Bulgargaz and the State Commission for Energy and Water Regulation (DKEVR) were playing theatrical performances about gas prices. "I find it humiliating to witness these performances," Paunova declared, adding a request by the National Electric Company (NEK) or Bulgargaz for a certain price hike was always followed by a representative of the energy watchdog vowing a lower increase. She explained that the same scenario had been played over and over again for the past ten years. "These are 100% theatrical performances – there's the good cop and the bad cop, and then it's "Hurrah! We're saved! The increase will be 5% rather than 15%", and then in 3 months' time the history repeats itself.To me, as a citizen, this behavior is humiliating," she stressed. Paunova was adamant that the heavy industry would not survive a 10% increase in power rates and a 5% increase in gas prices, as announced by DKEVR Chair Angel Semerdzhiev on Tuesday.
Source: Darik Radio (14.06.2012)

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

Bulgarian state gas company Bulgargaz is ready to stop deliveries to Sofia Heating Utility starting July, if the utility fails to start servicing its massive overdue debts. This was announced by Bulgargaz CEO Nikolay Gogov. Bulgargaz has had troubles collecting dues from several companies in Bulgaria, with the chief debtors being heating utilities in Sofia, Burgas, Pleven and Vratsa. In the beginning of June, Bulgargaz announced it has filed court claims for a total of BGN 500 M of overdue debts. CEO Gogov has explained that the company has absolutely no resources to further credit its debtors. Sofia Heating Utility owes the state gas company some BGN 150 M, being its largest debtor. If the ultimatum is not met, most parts of the Bulgarian capital will remain without running hot water. Gogov recalled that a prior stopping of deliveries to Burgas Heating Utility proved effective and the two companies agreed on a plan for servicing of the utility's BGN 8.7 M debt
Source: Capital (27.06.2012)

Bulgargaz: Sofia may remain without hot water as of July 2 “Bulgargaz JSC warned that it would stop the gas supplies to the Sofia Central Heating Utility as of July 2 if the company failed to pay the already delivered fuel by that date. This may result in suspension of the hot water supply to the customers of the heating company in the capital,” Dimitar Gogov, Executive Director of Bulgargaz said during a discussion at the State Energy and Water Regulatory Commission (SEWRC). Some time ago, the citizens of Bourgas remained without hot water for the same reason. The liabilities of the Sofia Central Heating Utility to Bulgargaz amount to BGN 154 mln. They increased from BGN 74 mln before the start of the heating season in October 2011. In a letter to the heating company last week, the public gas supplier demanded its overdue money but received no response. Bulgargaz has lost BGN 230 mln so far and according to its Executive Director, Dimitar Gogov, the company cannot bear such a burden. “We strongly insist on having our receivables immediately paid, bringing them at least to the level of October 1,” said the Executive Director of Bulgargaz. Gogov made his statement during the discussion on how much should the price of natural gas increase as of July 1. SEWRC suggested that the price hike should be less than 5%, while Bulgargas demanded an almost 16% increase. SEWRC’s Chairman Angel Semerdjiev asked Bulgargaz to work in such a way so as to ensure affordable prices of natural gas for consumers, and hence – of central heating and hot water.
Source: Class (27.06.2012)

South Stream Pipeline Emerges near Varna Natural gas pipeline South Stream will emerge on Bulgaria's land near the Black Sea city of Varna, envisage the plans of "South Stream Transport" company which will construct the pipeline in its part under the Black Sea. The company has officially informed Bulgaria's cabinet about its investment plans. In a letter to the Bulgarian ministry of ecology and waters and to the district administration of Varna the "South Stream Transport" initiates a procedure for the evaluation of the environment effect from the pipeline construction.
Source: Standart (29.06.2012)

Consortium "Shah Deniz 2" approved projects Nabucco West and TAP British Petroleum Plc (BP) and its partners in the Shah Deniz gas 2 field in the Caspian Sea selected the Nabucco West pipeline over the BP-backed South-East Europe Pipeline, or SEEP, in a second round to bring natural gas from Azerbaijan to Europe, Nefte Compass reported, citing unidentified people in the Caspian gas industry. Nabucco West will now compete with the Trans-Adriatic Pipeline, known as TAP, for rights to export Shah Deniz gas 2, with the partners aiming to make the final choice by mid-2013. Shah Deniz is being developed by BP, Statoil ASA (STL), State Oil Co. of Azerbaijan, Total SA (FP), OAO Lukoil, Naftiran Intertrade Co. and Turkiye Petrolleri AO. Nabucco is a joint venture of RWE AG (RWE), OMV AG (OMV), Mol Nyrt. (MOL), Bulgargaz EAD, Transgaz SA and Boru Hatlari ile Petrol Tasima AS. TAP is planned by EGL AG, Statoil and E.ON Ruhrgas AG.
Source: 3e-news (29.06.2012)

For a consecutive year Bulgarian refinery tops the Capital’s list for the biggest companies in Bulgaria - "Capital 100". Lukoil Neftochim Bourgas’ revenues for 2011 increased by 23% and reached BGN 6.7 billion, which is a result comparable to these registered before the start of the crisis. Increase in oils’ prices in the last year actually provided for goods results of the two Bulgarian companies of the Russian group Lukoil. Results for 2011, however shows that in the in the top tier, there is a new champion- copper extracting smelter based in Pirdop-Aurubis Bulgaria.In recent years the company increased its revenue ten times, as only last year its growth is over 45% reaching BGN 4.7 billion. In its final version ranking of the top ten companies was as follows: Lukoil Neftochim, Aurubis Bulgaria, Lukoil Bulgaria, NEK, OMV Bulgaria, Bulgargaz, Naftex oil, CEZ Electro Bulgaria, Overgas and Mobiltel. For a consecutive year pre-requisite for falling among the top ten are revenues of more than BGN 1 billion. In 2011 that was possible for Overgas, as well, which enters the club of corporate giants in BTC’s place. Revenues of the companies in telecommunication sector shrink. Total revenues of the top 10 companies increased by 18.7 percent in 2011, which is comparable to the progress of the top 100 companies, registering an increase of 18.4%.
Source: Capital (05.07.2012)

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

Heat Supply Shoumen SPJSC can be saved from bankruptcy if it is privatized. The idea will be discussed today at the municipal session. The company has debt of BGN 18 million to Bulgargaz, which forced the company to start legal procedure for bankruptcy last year. Until now, the proceedings were postponed five times. A number of financial expertise on the economic situation of the company have been prepared as well, but the decision of the case is yet to be taken. Today, the municipal council is once again to take the role of arbitrator - the session will again discuss the case with previous investor - Titan Power, whose contract ended in June. Interest in the bankrupt Heat Supply Shoumen also comes from Bio Power that wants to buy 100% stake in the company through a specially created company. It involves companies from the structure of the Russian giant Gazprom. The third proposal is from the Israeli company Telemann Impact.
Source: investor.bg (27.07.2012)

Vratsa-based factory for fertilizers is again is declared bankrupt, which gives a new possibility of its major creditors - Bulgargas and NEC to get delayed by a decade debts to the amount of BGN 80 million. A temporary trustee, who will assess the assets and will announce tenders for sale is appointed. The bankruptcy was announced after the Sofia Appellate Court overturned the decision of the District Court in Vratsa, which for years accepted the trust remedial programs to private investors. Creditors and former employees were being deluded with numerous projects for revival of the factory. During this time the entity's shares were transferred from one investor to another, while the nominal was devalued to BGN 1.4.
Source: investor.bg (30.07.2012)

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

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

SEWRC: Natural gas prices will not increase “Natural gas prices will not change,” Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC), said during an open session of the regulator on Tuesday. The Sofia Central Heating Utility remains the largest debtor of Bulgargaz, but the uncollected receivables from thermoelectric power plants will result in an increase of natural gas prices as of October. After the 11% discount on Russian natural gas deliveries became a fact, Bulgargaz said they will not ask for higher prices as of October. However, the final demand of the gas company will be known next week after Bulgargaz submits its proposals to SEWRC. The operation of Bulgargaz as a public gas supplier is dependent on the cash flows, especially the proceeds from the Sofia Central Heating Utility. “The obligation of heating utilities to collect their receivables from customers has never been cited as an argument for increasing the price,” added Semerdjiev. According to Ivan Hinovski, Chairman of Bulgarian Energy Forum, in 2013 and 2014, natural gas prices in Europe will significantly decline as a result of the imports of cheap shale gas, mostly from the US. “In our country, however, prices may not decrease,” he explained to TV Bulgaria On Air.
Source: Class (05.09.2012)

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

New heating season to begin with old prices “The new heating season will start with unchanged prices of central heating and hot water,” Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC), said on Tuesday. “I can assure you that the cost of heating energy will not increase, although some of the factors determining gas prices are slightly moving upwards and we will make use of even the smallest possibility of reducing prices,” added Semerdjiev. Experts are already now analysing the proposal of Bulgargaz to decrease the price of gas by 0.67% as of the beginning of October. However, it is already clear that despite the 11% reduction agreed with Russia, the prices of heating energy cannot be reduced retroactively. By the end of this month, the final decision on the prices of heating energy and hot water should be made.
Source: Class (12.09.2012)

Turkish company Setgaz will indeed build a connection between the gas networks of Turkey and Bulgaria, but it will be separate from the one to be constructed by Bulgartransgaz, stated the latter company. Thus Wednesday Bulgargransgaz confirmed reports that the Bulgarian cabinet has already concluded an agreement with Setgaz Dogalgaz for the construction of a gas pipe from the Turkish network on to Stara Zagora in Bulgaria. "We know of Setgaz's intentions to build the pipeline. We have expressed our desire for the connection to be operated by Bulgartransgaz once being constructed," stated the Bulgarian company. Bulgartransgas further said it supports all investments that could contribute to increasing Bulgaria's security and independence in terms of natural gas deliveries. The company however adds that Setgaz's project has a different concept and route from its own. Bulgartransgaz has nevertheless explained that the second connection will in no way affect its own project. Bulgaria hopes to have its connection to Turkey's gas system ready before the end of 2014. The country has embarked on building system links to neighboring Turkey, Greece and Romania to decrease energy dependence on Russia, which currently supplies it with some 90% of its natural gas demand.
Source: money.bg (13.09.2012)

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

Chimco‘s first buyer owes the state BGN 30 million, because of unfulfilled privatization contract. The sum is awarded to IBE Trans, registered in New York. The state paid nearly BGN 1 million for private bailiff, who made a seizure of part of plant‘s assets in order to collect the debt. The company bought 57% of Chimco‘s capital 13 years ago for BGN 1 million. The project for restart of production attempeted in 2007 under the name New Chimco failed. Thus now, a complicated procedure for sale of assets is under way. Probably plant‘s installations will be scraped, so that on the cleared area new industrial establishment can be built.
Source: profit.bg (25.09.2012)

Bulgarian state-owned gas supplier Bulgargaz has warned about a potential scarcity of natural gas in the first quarter of 2013. According to Alexander Petrov, head of a department at Bulgargaz, the company is in a tough financial condition which will force it to rely mostly on gas volumes from the Chiren underground gas storage in the last quarter of 2012. Petrov, as cited by Darik radio, explains that there is a real danger of a natural gas deficit unless Bulgaria signs the new gas supply contracts with Russia by mid-November. He says that the Chiren underground gas storage currently contains 380 million cubic meters of natural gas, of which the state-owned gas supplier plans to use 210 million cubic meters by end-2012. In Petrov's words, this will leave the Chiren UGS with only 170 million cubic meters of natural gas at the beginning of 2013. He informs that Bulgargaz has debts of around BGN 300 M and the company has resorted to a loan to purchase ga
Source: Capital (26.09.2012)

Shortage of gas possible in the winter due to small stocks “The potential of the gas deposit in Chiren will be used in Q4 2012 at maximum. The projected production of gas from that area is around 210 million cu m. Currently, the deposit has 380 million cu m of gas in stock. Thus, 170 million cu m will remain for Q1 2013 and there is a risk of a gas shortage because of the increased consumption during the winter. An unprecedented low quantity of gas in Chiren is available. At its closed-door meeting on September 26, the State Energy and Water Regulatory Commission (SEWRC) will approve the proposal of Bulgargaz for reducing the price of gas by 0.67% as of October 1,” said SEWRC’s Chairman Angel Semerdjiev. The decrease will be in force in Q4 2012. Bulgargaz announced that the company has overdue proceeds of BGN 300 mln. According to estimates of SEWRC, however, this amount is around BGN 250 mln. “There may be a shortage of natural gas in Q1 2013,” said Alexander Petrov from the management of Bulgargaz. The company is in a difficult financial state. Therefore, it will mainly use the stocks from the deposit in Chiren in Q4 2012. If the new contracts with Russia are not signed by the middle of November, there is a real danger of a natural gas deficit. “The liabilities of Bulgargaz are around BGN 300 mln. The company has also borrowed a credit for the purchase of gas,” added Alexander Petrov.
Source: Class (26.09.2012)

Sofia Central Heating Utility's debt to Bulgargaz amounts to BGN 128 mln “The liabilities of the Sofia Central Heating Utility to Bulgargaz amount to BGN 128 mln,” announced Stoyan Tsvetanov, Executive Director of the heating company. Over the last 15 years, the Sofia Central Heating Utility has always had problems with the payment of gas supplied to it. “We are doing everything possible. All the money received from our customers goes for daily payments for natural gas. We took over the company with total liabilities of BGN 195 mln and, now, these stand at BGN 170 mln. The cash flow in the energy system has been disrupted but, with our colleagues from Bulgargaz, we are seeking a solution to these problems every day. The Sofia Central Heating Utility is trying to solve the problems with Bulgargaz through its own efforts and we do not intend to borrow credit. Our debt is decreasing, albeit not as much as we would like to,” Tsvetanov commented. He added that the repairs of the heat transmission network in Sofia will be completed by September 30. He noted that the replacement of the network will improve the quality of the service at a good price. “The main purpose of the company over the following years will be to offer a price for heating energy that will be the most attractive one, compared to all other types of energy used for heating,” said Tsvetanov.
Source: Class (27.09.2012)

"The liabilities of the Sofia Central Heating Utility to Bulgargaz amount to BGN 128 mln," announced Stoyan Tsvetanov, executive director of the heating company, cited by Klassa daily. Over the last 15 years, the Sofia Central Heating Utility has always had problems with the payment of gas supplied to it. "We are doing everything possible. All the money received from our customers goes for daily payments for natural gas. We took over the company with total liabilities of BGN 195 mln and, now, these stand at BGN 170 million. The cash flow in the energy system has been disrupted but, with our colleagues from Bulgargaz, we are seeking a solution to these problems every day. The Sofia Central Heating Utility is trying to solve the problems with Bulgargaz through its own efforts and we do not intend to borrow credit. Our debt is decreasing, albeit not as much as we would like to," Tsvetanov commented. He added that the repairs of the heat transmission network in Sofia will be completed by September 30. He noted that the replacement of the network will improve the quality of the service at a good price. "The main purpose of the company over the following years will be to offer a price for heating energy that will be the most attractive one, compared to all other types of energy used for heating," said Tsvetanov.
Source: Standart (27.09.2012)

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

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

Insurance company Armeec entered the Top 100 ranking of the largest insurance companies in Southeast Europe, taking the prestigious 21st spot. The ranking is done in three categories - companies, insurers and banks. A total of 21 Bulgarian insurers ranked, among them DZI General Insurance, Bulstrad, Lev Ins, Allianz Bulgaria, Bul Ins, UNIQA Insurance, Euro Ins , Energia and Victoria. 13 Bulgarian companies are among the leaders of the South-Eastern Europe in the SeeNews TOP 100 - Lukoil Neftochim occupies the prestigious 3rd place in the overall ranking, which gives it the first place in Top 100. The 6 th place in Southeast Europe is taken by Aurubis Bulgaria. The Top 100 also includes NEK, Bulgargaz, CEZ Electro Bulgaria, Mobiltel and others. Top 100 banks in Southeastern Europe include 18 Bulgarian lenders. UniCredit Bulbank is 7th and the rest that enter the Top 100 are DSK, UBB, Raiffeisenbank, FIB, Post Bank, Corporate Commercial Bank, SG Expressbank, Central Cooperative Bank.
Source: Standart (12.10.2012)

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

Bulgarian heating utilities owe state-owned gas monopoly Bulgargaz over BGN 170 millionfor gas supplies, Bulgargaz's chief executive officer said on Friday. The capital city’s heating utility, Toplofikatsiya Sofia, is the biggest Bulgargaz debtor with liabilities amounting to BGN 134 million, Dimitar Gogov told reporters on the sidelines of a forum of the Bulgarian heating utilities held in Sofia. The high volume of uncollected receivables has contributed to the total loss of BGN 200 millionloss accumulated by Bulgargaz over the past four years, according to Gogov. At present, a total of 15 district heating companies operate in Bulgaria as only two of them, in Sofia and Shumen, are state-owned.
Source: Darik Radio (29.10.2012)

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

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

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

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

Four companies bought papers for participation in privatisation procedure of Heat Supply Shoumen. These are Sofia-based Pirin Vat OOD and Bio Power AD, Israeli-based Telemania and Rousse-based Gerrad AD. The term for paying deposits for participation is 26 of November. The company has a load of debts to Bulgargaz. The minimum price for participation in the procedure is BGN 100 thousand. The buyer takes up the engagement to invest at least BGN 1 million in the company in the upcoming three years.
Source: Dnevnik (13.11.2012)

Some 11% cheaper Russian gas to Bulgaria expected as of 2013 Natural gas prices will surely fall as of January 1, 2013 after the signing of the new contracts for natural gas supply, Chairman of the State Energy and Water Regulatory Commission (SEWRC) Angel Semerdzhiev predicted. Such a reduction can be expected on the basis of the announced 11% reduction in the price of natural gas, which will enter into force upon the signing of the contract for the South Stream gas pipeline, he said. On this basis, Semerdzhiev reckons that central heating will also become cheaper. According to SEWRC, there is a possibility for a reduction by half of that rate because the obligations of heating companies to Bulgargaz need to be guaranteed. Earlier this morning, Energy Minister Delian Dobrev told TV7 that a new contract for the supply of gas after January 1, 2013 is currently being negotiated, under which there will be no mediators and our country will have a contract with Gazpromexport only. Lower prices of fuel will also be negotiated. The Minister hopes that the contract will be for six years only, instead of 10 or 20, so that our country will be able to respond flexibly if the situation changes and in case alternative sources, such as gas from the Black Sea and the Caspian Region, emerge and Bulgaria can use cheaper fuel. At the same time, however, President of the Russian gas giant Gazprom Alexey Miller announced officially that the start of the gas pipeline will be on December 7 near the Russian city of Anapa. Bulgaria does not associate the acceptance of the final investment decision for its section of the South Stream gas pipeline with an adjustment of the prices of Russian gas, Miller said, cited by ITAR-TASS.
Source: Class (14.11.2012)

At its Wednesday meeting, the Cabinet decided to grant a concession for exploration for oil and gas in the region of Deventsi, Cherven Bryag Municipality, to Direct Petroleum, announced Minister of Economy, Energy and Tourism Delian Dobrev. A contract for extraction of local gas will enter into force as of the second half of next year. In the first years, the output will amount to the quantities extracted by Melrose - between 250 and 300 million cubic metres a year. An agreement has been signed for the purchase of 80% of the extracted quantities by Bulgargaz at a 35% lower price than that of imported gas. Extraction will begin in the second half of next year.
Source: Capital (15.11.2012)

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

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

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

On 1 January 2013 the Bulgarian gas market can witness serious changes. However, they are not caused by the new long-term contract with Gazprom. Or at least it would not be directly responsible for them. Most likely since the beginning of the year Overgas, the subsidiary of the Russian gas giant in Bulgaria, will begin to supply gas, avoiding the former monopoly of Bulgargaz. Until recently this was impossible because the state and its two gas companies impeded in every way the entry of a new player. Last week CEO of Bulgargaz already signaled the change, saying that the company has no obligation to supply to Overgas. "How they will provide gas is not my place to comment," he said. Deputy Executive Director of Overgas Inc. Svetoslav Ivanov confirmed that by the end of the year the company will contract with Bulgartransgaz and since the beginning of 2013 will be able to supply gas to its customers, which until recently was purchased from state monopoly Bulgargaz.
Source: Capital (26.11.2012)

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

Israel's Telemenia has filed the sole bid in the tender for the sale of the municipal heating utility company in Bulgaria’s Shumen, the municipality said on Monday. The offer will be opened on Tuesday, the municipality of Shumen said in a statement posted on its website. The three other companies which had bought tender documents did not place bids. The equity up for sale is priced at 100,000 levs, the municipality said in October. Bulgaria has already sold the heating utility companies in most of its big cities in an attempt to further liberalise its energy market after joining the European Union in 2007
Source: 24 chasa (27.11.2012)

SEWRC: Heating bills to fall by at least 7% as of the New Year As of January, Bulgarian households will be charged at least 7% less for heating, according to Angel Semerdjiev, Chairperson of the State Energy and Water Regulatory Commission (SEWRC). The expected change comes as a result of lower prices of natural gas which the Government was able to negotiate at the renewal of its contract with Russia's Gazprom. Semerdjiev added that reductions will vary between different central heating utilities. Consumers will see the change in their February bills at the earliest but, for this to happen, there has to be a special reading of home devices monitoring heat distribution. "All central heating utilities powered by natural gas will feel the price cut," Semerdjiev said. The exact amount of the change will be revealed when Bulgargaz files its projections for the January-March 2013 regulatory period with the SEWRC. The deadline is December 10, 2012. However, Semerdjiev reminded that the reduction of basic parameters in Bulgaria's contract with the Russian energy company does not mean a reduction of heating prices by the same percentage, since there are other factors affecting consumer prices. The latest Bulgargaz forecast sees the barest price alteration for end users somewhere in the range of 5% to 7%. Sources from the Bulgarian District Heating Association said they don't expect a sizeable reduction of heating prices next year based on the new contract for Russian gas supply because the state-owned Bulgargaz has to be compensated for uncollected revenue.
Source: Class (28.11.2012)

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

Bulgaria's Gas Supplier to Request 9% Price Cut in Q1, 2013 Bulgaria's state-owned gas supplier will seek a reduction in Q1, 2013 gas prices by around 9%, according to Bulgargaz CEO Dimitar Gogov. Speaking Wednesday at a press conference at the Ministry of Economy, Energy, and Tourism (MIET), Gogov made clear that the gas prices entering into force on January 1, 2013 would also depend on the USD-BGN exchange rate. Bulgargaz is to submit its proposal for gas prices in Q1, 2013 to the State Commission for Energy and Water Regulation (DKEVR) on December 10. A reduction in prices of natural gas is largely expected to result in lower heating tariffs. The decrease in heating tariffs is anticipated as a result of Bulgaria's new gas supply contract stipulating a discount of over 20%. The new direct gas supply contract between Bulgaria and Russia was signed in mid-November and is to take effect in January 2013. Apart from the discount on Russian gas, Bulgargaz also vowed to reduce tariffs for heating utilities. On November 19, Dimitar Gogov suggested that heating utilities could expect a discount of up to 7% in gas prices. Meanwhile, experts cited by econ.bg have argued that heating and hot water rates may drop by up to 5% in the case of a 7% reduction in gas prices. During the press conference on Wednesday, it was announced that Bulgarian heating utilities owe a total of BGN 184 M for gas supplies to Bulgargaz, including the BGN 167 M debt of Sofia heating utility Toplofikatsiya Sofia. Gogov commented that suspending gas supplies to indebted heating utilities was one option but not a priority.
Source: Class (06.12.2012)

Bulgaria's state-owned gas supplier will seek a reduction in Q1, 2013 gas prices by around 9%, according to Bulgargaz CEO Dimitar Gogov. Speaking Wednesday at a press conference at the Ministry of Economy, Energy, and Tourism (MIET), Gogov made clear that the gas prices entering into force on January 1, 2013 would also depend on the USD-BGN exchange rate. Bulgargaz is to submit its proposal for gas prices in Q1, 2013 to the State Commission for Energy and Water Regulation (DKEVR) on December 10. A reduction in prices of natural gas is largely expected to result in lower heating tariffs. The decrease in heating tariffs is anticipated as a result of Bulgaria's new gas supply contract stipulating a discount of over 20%. The new direct gas supply contract between Bulgaria and Russia was signed in mid-November and is to take effect in January 2013. Apart from the discount on Russian gas, Bulgargaz also vowed to reduce tariffs for heating utilities. On November 19, Dimitar Gogov suggested that heating utilities could expect a discount of up to 7% in gas prices.
Source: Standart (06.12.2012)

Creditors demanded BGN 66 million from Inter Pipe for a month Over BGN 26 million are the claims of creditors of Inter Pipe a month after the company of former owner of Kremikovtzi Valentin Zahariev went into bankruptcy. Separately, nearly BGN 40 million of claims were dismissed as unfounded by the trustee, but the decision may be appealed. The companies to which the troubled plant has debts still have two months to make claims, so it is too early to tell how high the amount could reach. The list will likely add First Investment Bank (FIB), which is among the largest creditors, even though it began to sell property over outstanding debts as early ad the spring. According to the published list in the Commercial Register, the greatest amount due to the company is to the registered in the Seychelles Waldrop Inc. Its director is Michael Patrick Duen and its attorney lawyer in Bulgaria is Milen Shopov.
Source: Capital (07.12.2012)

Minister Delian Dobrev: Traders have access to the domestic natural gas market “As of next year, we will be buying 100% of the gas for Bulgargaz from Gazpromexport. What other traders on the Bulgarian market will do is their own business,” Minister of Economy, Energy and Tourism Delian Dobrev stated for Focus agency on Sunday. He specified that there are no contracts for the price of gas between Bulgargaz and Overgas. “We cannot have arrangements for avoiding competition because Bulgargaz is a company selling gas just like LB Bulgaricum is a company selling cheese. If there are other traders on this market, other private companies willing to sell, they are welcome to sell,” said Dobrev. He pointed out that the market is being liberalised and all traders who want access to the network of Bulgartransgaz will have it, so that they can make deliveries. Dobrev said that the state-run company Bulgargaz has only one contract and it is with Gazpromexport. According to Dobrev, there will be no more intermediaries, while by the end of the year, Overgas will be one of the companies that will have supplied over 90% of the volume of natural gas to the Bulgarian market. “Central heating prices cannot go down by 10% while the price of natural gas is reduced by 9%,” added Dobrev. The Executive Director of the Bulgarian Energy Holding Mihail Antonov is not a regulator, nor am I the person who sets prices,” said the Energy Minister. There are regulators who will say what the price of central heating will be,” specified Dobrev during the opening of the first store of LB Bulgaricum in the capital city.
Source: Class (10.12.2012)

Natural Gas Price to Go down by 9.3% as of 2013 Bulgarian state-owned company Bulgargaz has requested a reduction of 9.3% of the price of natural gas from the beginning of 2013. Bulgargaz has already submitted its Q1, 2013 proposal with the State Energy and Water Regulatory Commission (SEWRC), according to the press office of the state-owned company. Bulgargaz seeks a price of BGN 660.64 per 1000 cubic meters of gas, excise duty and VAT excluded. The reduction amounts to BGN 67.70 per 1000 cubic meters. The tariff proposal includes a 2% markup for reimbursing Bulgargaz for uncollected revenues. The gas price decrease scheduled to take effect on January 1, 2013, was made possible by the discount stipulated in the new supply contracts with Russia's Gazprom. SEWRC is to review Bulgargaz's motives and to announce gas prices in Q1, 2013. If the price of natural gas goes down by 9.3%, the price of central-heating should be decreased by at least 6-8% as the price of natural gas forms 70% of the central-heating cos
Source: Standart (11.12.2012)

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

Delian Dobrev: The 20% reduction in the price of natural gas will save businesses $300 mln The 20% price reduction for Bulgaria's natural gas supplies, which will come into effect in January 2013, will save businesses and consumers $300 mln next year, said Delian Dobrev, Minister of Economy, Energy and Tourism, during an economic conference in Sofia. Dobrev added that the lower gas price that has been agreed with Gazprom will also show up in some form in heating bills. Bulgargaz has already submitted a proposal to the State Energy and Water Regulatory Commission (SEWRC), that, if accepted, will see gas prices drop by 9.3%, or BGN 660.64 per 1,000 cubic meters in the first quarter of 2013, Dobrev reminded. The 20% price reduction will have a positive effect on domestic output of natural gas, which will be 35% cheaper, since the state is striving to increase it. Domestic output is expected to total 490 million cubic meters in 2012. Thanks to the Devenci field, set to come on stream in the middle of next year, domestic output of natural gas should reach 574 million cubic meters in 2013. Consumers will pay between 3% and 7.5% less for central heating and hot water as of January, announced SEWRC chief Angel Semerdzhiev. According to him, the price reduction for natural gas will be bigger than the 9.3% proposed by Bulgargaz, and the cost for central heating and hot water will drop by roughly the same margin in most Bulgarian cities. In the capital, consumers will enjoy a 7% price reduction, said Semerdzhiev, reminding the public that all central heating utilities operate under certain economic models, Darik radio reported. The price reduction will be automatic, which means only one parameter in these economic models will be altered – gas prices. "We will have an objective result," commented Semerdzhiev.
Source: Class (12.12.2012)

SEWRC: Gas prices to fall by 9.83% The price of natural gas will decrease by 9.83% for the next quarter, as of January 1, 2013. This was recorded in a report adopted at a closed meeting of the State Energy and Water Regulatory Commission (SEWRC). Next Tuesday, on December 18, an open meeting will be held, which will discuss the report of the working group, Chairman of the regulator Angel Semerdzhiev explained at Wednesday's meeting of the Parliamentary Inquiry Committee for investigating cases of high level corruption. "Agreed lower prices for imported natural gas will affect all users of natural gas, both those who use it directly and customers of heating companies," he said. SEWRC's Chairman expressed his hope that, in the coming seasons, the price of natural gas and heating services in the country will decline, albeit more slowly. It is highly likely that, as of July 1 next year, the price of electricity sold to NEK by TPP AES Galabovo and TPP Contour Global Maritsa Iztok 3 will decrease and, thus, reduce the cost of electricity as a whole, Semerdzhiev explained. According to him, SEWRC is almost ready to start the regulatory audit of the three thermal power plants - TPP AES Galabovo, TPP Maritsa Iztok 2 and TPP Contour Global Maritsa Iztok 3. Semerdzhiev noted that the report will be used to optimise the costs of power plants and, consequently, to reduce the price of electricity. He explained that the three plants use limestone for desulphurisation and this is reflected in the final price of electricity sold. Limestone's relative share in the price of electricity is the lowest for Maritza Iztok 2, which does not work on long-term contracts for the supply of limestone. "SEWRC may request an amendment to pricing mechanisms in case of a discrepancy with EU legislation. There are no plants in the EU with long-term purchase contracts. The problem with long-term purchase contracts is not specific only for Bulgaria, there was such a problem in Poland and Hungary as well," emphasised Angel Semerdzhiev. SEWRC's Chairman announced that, by September 30, the total capacity of installed RES was 1,787 megawatts. Of these, wind farms had a total capacity of 684 megawatts and photovoltaic plants - 862 megawatts. Power plants using biofuel had a total capacity of 41 megawatts.
Source: Class (15.12.2012)

Bulgarian companies to modernise Yemeni power plants Bulgarian companies will examine opportunities for participating in the modernisation of Yemeni power plants. This became clear at the first meeting of the Intergovernmental Bulgarian- Yemeni Commission for Economic Cooperation, which was held in Sana'a. The Commission is co-chaired by Bulgarian Deputy Minister of Economy, Energy and Tourism, Ivo Marinov, and Yemen's Deputy Minister of Industry and Trade, Mohsen Ali Al-Naqib. The two-day session was attended by representatives of companies in the spheres of energy, electronics, the military industry, etc. The opportunities for the participation of Bulgarian companies as subcontractors in Yemen-based infrastructure projects were also discussed. These included road equipment, dams, irrigation systems, etc. Talks between Bulgargaz and Yemen's state-owned company Yemen LNG are expected to be held on opportunities for carrying liquefied gas supplies from Yemen through Greek and Turkish terminals. Bilateral economic cooperation may be strengthened via supplies of Bulgarian medicines and medicinal substances, machinery, agricultural and food processing equipment, canned food, meat, artificial fertilisers, irrigation systems and machines, water well equipment. Early in 2013, a Bilateral Business Forum will be organised in Sofia. The first session of the Intergovernmental Bulgarian - Yemeni Commission for Economic Cooperation ended with the signing of a bilateral protocol.
Source: Class (18.12.2012)

A Pernik-based firm tops the ranking of the most dynamic companies Euroquest Energy of Pernik topped the ranking of the most dynamic companies, with some 810.33% growth in proceeds for 2011, compared to 2010. In the ranking commissioned by exporter.bg and prepared by the audit company Active, Euroquest Energy is followed by NEF Telecom Bulgaria, with a growth of 677.88% and Landmark Holdings, which increased its revenues by 663.8% in a year. In absolute terms, the biggest growth of proceeds in 2010-2011, amounting to BGN 1.816 bn, was achieved by Aurubis Bulgaria, followed by Lukoil Neftochim, with an annual growth of BGN 1.178 bn, and Bulgargaz, whose proceeds increased by BGN 359.2 mln within the same period. “The results of the ranking showed that, at a time of crisis, the best performing companies are those with equally good management both at times of growth and crisis,” commented Simeon Simov, Managing Partner of Active LTD. The ranking is valuable as a form of information for all companies in Bulgaria because it allows them to orientate in the business situation in Bulgaria by industries and sectors. It allows every company to obtain maximally objective information about their partners and competitors. A total of 99 ratings have been published - 19 by branches and 80 by sub-branches, covering 8,000 companies from all sectors of Bulgaria’s economy. The most dynamic company in the agricultural sector is Pilko of Razgrad, in transport – Bulgartransgaz, in the hospitality industry – Albena JSC and in telecommunications - Mobiltel.
Source: Class (20.12.2012)

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