TAP signs contract with Greek interconnector to deliver Azeri gas to Bulgaria The Trans Adriatic Pipeline AG (TAP) and the Interconnector Greece-Bulgaria (ICGB) have signed an agreement laying the foundations for linking the two projects and thus bringing gas from Azerbaijan to Bulgaria, a country that depends on Russia for almost 100% of its gas imports. According to a press release from the TAP company, the two sides will work together on realising a possible interconnection point in the vicinity of Komotini, Greece. This will enable new gas supplies to flow into the Bulgarian gas network and further into the South Eastern Europe region. Lutz Landwehr, commercial director of TAP is quoted as saying that his company welcomes this agreement and sees it as an opportunity to transport Caspian gas to Bulgaria, thus enhancing diversification of supply and improving security of supply in the country and in the wider South Eastern Europe Region. Following the signature of the MOUC, TAP and ICGB – the company in charge of a planned pipeline linking Greece to Bulgaria – will start a cooperation focused on understanding the technical requirements of each project, exchanging views on best practices and on any other relevant issues that affect the development of either project.
Source: Standart (08.01.2014)

Petroceltic to invest USD 4.0 mln in Bulgarian ops in 2014 Irish oil and gas exploration and production company Petroceltic International said on Tuesday it will invest a total of USD 4.0 million for development and exploration activities in Bulgaria this year. “Following the Kaliakra-1 production well tie-back in 2013, the Company has no major investments planned in Bulgaria until 2015, when the Kavarna East development is scheduled to be completed,” it said in a statement posted on its website. Petroceltic‘s current gas sales arrangements with Bulgarian state-owned gas utility company Bulgargaz and Agropolychim, an independent industrial consumer, will remain in force in respect of all 2014 production. According to the company, the received price is expected to average about USD 8.50 per thousand standard cubic feet, in line with 2013 average realisations of some USD 8.40. In 2013 Petroceltic invested a total of USD 49 million in Bulgaria. Petroceltic International, which merged with Melrose Resources in a deal completed in October 2012, is focused on North Africa, Mediterranean and the Black Sea regions.
Source: Capital (09.01.2014)

Only one candidate for Heat Supply Shumen Shumen Municipal Commission approved the only candidate for the buyer of Heat Supply Shumen. This is Energosnabdyavane SPLTD managed by Dimitar Dimitrov, says a press release of the municipality. At its meeting the committee procedure, chaired by Deputy Mayor for business and economic development Dimitar Kirov, opened the offer of Energosnabdyavane. Experts have concluded that the applicant meets the conditions of the tender documentation. Commission has already proposed the company for winner to the Mayor of Shumen Krasimir Kostov. After the decision is taken, Dimitar Dimitrov will be asked to sign a contract with the municipality. Under the terms of the sale, price at which the municipality sells Heat Supply Shumen is BGN 10 thousand.
Source: investor.bg (15.01.2014)

Bulgaria’s Energosnabdyavane selected as buyer of Toplofikatsia Shumen Bulgarian electricity supplier Energosnabdyavane has been selected to acquire heating utility Toplofikatsia Shumen, the municipality of Shumen said. Energosnabdyavane was the only company interested in the privatisation of the Shumen heating utility in the second tender for the company’s sale, the municipality said on Tuesday. The deal is yet subject to approval by Shumen’s mayor, the municipality said. The company was put for sale for at a starting price of BGN 10,000, equal to 10% of the price it was sold for during the previous tender. It was forced into insolvency in November 2013 due to overdue debts of BGN 18.5 million to Bulgargaz. The buyer has to reschedule the company’s debt and invest at least 2.0 million levs in it within the next three years. Toplofikatsia Shumen was put up for sale for the second time in November 2013 after the first buyer Israeli company Telemenian withdrew from the deal soon after signing it.
Source: Capital (16.01.2014)

The European commissioners decided not to interfere with South Stream Russia and EU agreed about creation of the working group which will be engaged in settlement of legal and technical questions of the South Stream project, various media sources report. Thus, conditions of the project will be coordinated bilaterally between the European Union and the Russian Federation without revision of the intergovernmental relations with transit countries. According to the deputy minister of Energy of Russia Anatoly Yanovsky, the task of the working group will consist in that the gas pipeline could function normally under EU laws. Terms of work of group aren't determined yet. Earlier European Commission representatives noted that "Gazprom" agreements with the European countries violated the law of EU by which tariffs for gas have to be offered independent managing directors and have to be confirmed with the regulator. The principles of the European gas market were contradicted also with that to the gas pipeline "Gazprom" will be able to dispose of the admission of other users only. The director of the department of the energy market of European Commission Claus-Dieter Borchardt declared that in case of refusal Russia from revision of agreements, the European countries will be obliged to terminate them. However Bulgaria, Hungary and Slovenia supported the Russian company, having emphasized that agreements were concluded on the South Stream project in 2008-2009 and completely corresponded to the European Union legislation at that time.
Source: Standart (21.01.2014)

Russian agreements with South Stream project participants to be finalized by 2016 Russia's intergovernmental agreements with countries participating in the South Stream gas pipeline project will be finalized with the European Commission's mediation by 2016, Russian Ambassador to the EU Vladimir Chizhov told Russian reporters on Wednesday in the run-up to the 32nd Russia-EU summit that will be held in Brussels on January 28. An intergovernmental working group headed by RF Deputy Energy Minister Anatoly Yanovsky and head of the European Commission's Directorate General for Energy Dominique Ristori has already been created to this end.Chizhov recalled that Russia since 2008 had concluded intergovernmental agreements with all the countries through the territories of which the gas pipeline would run — including Serbia and six EU countries — Bulgaria, Hungary, Greece, Slovenia, Croatia and Austria. "The European Commission has been pretending for quite a while that it has heard nothing about South Stream. Then, at some stage, receiving from the related countries copies of these agreements, the European Commission stated that all of them failed to comply with the EU Third Energy Package norms, that is, they should be denounced or revised. In the end, these six countries collectively asked the European Commission to undertake negotiations with Russia, to which European Energy Commissioner Gunther Oettinger agreed," Chizov said. The total rated capacity of South Stream during the first year of operation will be equal to some 16 billion cubic meters of gas, and then it will reach 63 billion cubic meters per year. At present, its construction has started in Bulgaria and Serbia, and Hungary will be next.
Source: Standart (23.01.2014)

Heat Supply Shoumen sold to a local company The contract for the sale of the municipal company Heat Supply Shoumen was signed between Mayor Krasimir Kostov and the manager and owner of the local company Energosnabdyavane - Dimitar Dimitrov, who was the only candidate to take over the troubled company. The agreed price is BGN 10 thousand, which must be fully paid to ten days, and within 45 days the buyer must pay BGN 200 thousand as bank guarantee that he will meet his commitments to invest BGN 2.1 million in the operations of the heat supply company. Its debts are huge and last November the state-owned Bulgargaz asked for its bankruptcy over unpaid over BGN 18 million for gas. Once the guarantee and the full price are paid - Energosnabdyavane will receive the shares. According to the contract, the purchaser shall, within three years make the promised investments and open 45 jobs. This will be the third attempt to stabilize the municipal heating company, which is looking for a new owner since 2011, when the state granted it to the local authorities.
Source: mediapool.bg (03.02.2014)

Bulgarian Energy Holding has established “Energy Investment Company" Bulgarian Energy Holding (BEH) has established a new joint stock company, an information in the Commercial Register shows, reported publics.bg. The new company is "Energy Investment Company" with a capital of 50,000 BGN and is a wholly owned by BEH. The decision to create a new company is taken by the Board of directors of BEH on November 26 last year and approved by the principal of the holding - Minister of Economy and Energy Dragomir Stoynev on December 12. According to the BEH decision of 22 January, the new company will be managed by a three-member Board of Directors including Momchil Vekilov Vans (Chairman of the Board), Ilia Petrov Ivanov (CEO) and Delcho Grozev Hristosov. Yet the initial decision of 26 November indicates a different management team: Ilia Petrov Ivanov, Severin Stefanov Vartigov and Ina Lazarova Kirilova. This is the third company BEH established within the last six months. The holding has already established "Energy Operator for Measurement and Iinformation Technologies" and "Independent Bulgarian Energy Exchange”.
Source: Capital (05.02.2014)

Bulgaria's BEH says NEK, ESO split-up completed Bulgarian state-owned electricity company NEK and Electricity System Operator (ESO) completed on February 4 the last phase of their split-up, regarding the unbundling of the ownership of the network and the associated assets, the Bulgarian Energy Holding (BEH) said on Wednesday. The unbundling will allow ESO, as the owner of the grid, to start the process of its certification as an independent transmission operator as a further step in the development of a competitive and financially stable energy market, BEH said in a press release. The split-up of the two companies is required under the EU’s Third Energy Liberalisation Package. Bulgarian Energy Holding (BEH) - a state-owned holding company set up in 2008 which controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy - took full control of ESO from NEK in 2013.
Source: investor.bg (06.02.2014)

Bulgaria Confirms Interest in Gas Supplies from Azerbaijan Bulgaria's Economy and Energy Minister Dragomir Stoynev has confirmed Bulgaria's interest in receiving gas supplies from Azerbaijan. Stoynev met with senior executives of the state-owned oil and natural gas corporation of Azerbaijan, according to reports of trend.az. During the meeting, Rovnag Abdulayev, President of State Oil Company of Azerbaijan (SOCAR), was positive that Azerbaijan and Bulgaria would deepen energy cooperation. Europe is expected to receive gas supplies from Azerbaijan in 2019, according to reports of investor.bg. The Shah Deniz consortium selected the Trans Adriatic Pipeline (TAP) to deliver gas volumes from the Shah Deniz stage 2 project to customers in Greece, Italy and Southeast Europe, neglecting the Nabucco gas pipeline project, planned to cross Bulgarian territory. The decision, however, does not mean that Bulgaria will not be able to receive gas supplies from Azerbaijan. In the beginning of the year, TAP and the Bulgaria-Greece gas interconnector signed a memorandum of technical cooperation on the development of the strategic infrastructure in the region. The agreement will allow Bulgaria to receive gas supplies from the Caspian Sea through the Komotini-Stara Zagora gas pipeline interconnection. The TAP project connects to the Trans-Anatolian gas pipeline (TANAP) at the Turkish-Greek border. The TAP pipeline is to carry natural gas from the Caspian Sea from Greece, via Albania and the Adriatic Sea to Italy and further to Western Europe.
Source: Standart (14.02.2014)

Azerbaijan increases gas supplies to Bulgaria by 300% The gas shipments from Azerbaijan to Bulgaria will increase threefold in 2019, Bulgaria's Minister of Economy Dragomir Stoynev announced after a meeting with Azeri President Ilham Aliyev. The planned 1 billion cubic meters will become 3 bcm. Ilham Aliyev gave assurances to the Bulgarian delegation and personally to Bulgarian Prime Minister Plamen Oresharski that a joint venture will be established with the Azeri company Sokar, which will work on the gasification of Bulgaria, both in domestic and industrial use. Sokar itself has also shown interest in investments in Bulgaria, mainly in the energy sector and more specifically in the gas sector, Stoynev announced. He added that Azerbaijan intends to invest in the expansion of gas storage in Chiren. Only 2% -3% of the population of Bulgaria has gas supply and thus investors are very interested in the issue, the Economy Minister added. With the development of TAP, Bulgaria will have the opportunity to receive greater quantities of gas. Although gas connections are in the process of project realization, Ilham Aliyev declared his personal his desire for the Sokar investment in Bulgaria.
Source: Standart (21.02.2014)

Insolvent Bulgarian fertiliser plant Chimco put up for sale at EUR 15 mln The assets of insolvent Bulgarian fertliser plant Chimco have been put up for sale at a starting price of nearly BGN 29 million. Chimco's land, buildings, production and engineering facilities, equipment and vehicles will be auctioned on March 19. The tender procedure started at the request of Chimco’s trustee after a decision from the Vratsa regional court. Chimco, which halted operations in 2003, used to be Bulgaria's biggest urea producer with an output capacity of 800,000 tonnes annually, accounting for approximately 3.5% of global production. The plant produced ammonia, carbon dioxide, argon and various types of catalysts, as well. It was declared bankrupt in 2004.
Source: Presa (06.03.2014)

Bulgaria’s Energosnabdyavane signs deal to buy heating utility Toplofikatsia Shumen The Bulgarian municipality of Shumen said on Wednesday it signed a deal with local electricity supplier Energosnabdyavane for the privatisation of 100% of heating utility Toplofikatsia Shumen. Energosnabdyavane has acquired 9,696,101 shares of Toplofikatsia Shumen, the municipal authorities told SeeNews in an emailed statement. Shumen closed a second privatisation tender for Toplofikatsia Shumen in January where Energosnabdyavane was the only bider. The company was put up for sale at a starting price of 10,000 levs ($7,000/5,100 euro), equal to 10% of the price it was sold for during the previous tender. It was forced into insolvency in November 2013 due to overdue debts of 18.5 million levs to local gas monopoly Bulgargaz . As the buyer, Energosnabdyavane is required to present a bank guarantee of 200,000 levs and to invest in the healing utility 2.1 million levs over a three-year period, creating 45 new jobs.
Source: investor.bg (06.03.2014)

Bulgargaz wants gas price reduction by almost 3% The price of natural gas sold by Bulgarian state-owned gas supplier Bulgargaz will fall by nearly 3% in Q2 of 2014. Bulgargaz submitted the proposal to the State Energy and Water Regulatory Commission (SEWRC). Bulgargaz, which is part of the structure of state-owned Bulgarian Energy Holding (BEH) is experiencing difficulties in paying for gas supplies by Gazprom in time. The reason is that Bulgarian heating utilities, and more specifically Toplofikatsiya Sofia, delay their payments to Bulgargaz. Toplofikatsiya Sofia owes Bulgargaz BGN 238 million, and further BGN 222 million to BEH. Bulgargaz was forced to take out a loan worth BGN 60 million from Corporate Commercial Bank in order to service its current obligations.
Source: Capital (11.03.2014)

Bulgarian Gas Reserves in Chiren Depot to 'Enough for 45 Days' Bulgaria's main gas depot by the north-west village of Chiren contains reserves for 45 days. Due to the emergency situation in Ukraine, daily extraction of gas from Chiren has been halted, and accumulation of stockpile has been ordered instead, representatives of state entity Bulgargaz and gas transmission operator Bulgargaz have reported at a hearing in the Parliamentary Commission on Energy. Gas extraction is the usual practice at this time of the year. However, the possibility of halting supplies from Ukraine has led to increasing storage. According to the 2012 Emergency Action Plan, Chiren gas depot is to store at least 130 M cubic meters of gas, and as of March 12 it contains "a lot more" - some 192 M cubic meters. Every day in winter, gas consumption is between 10 and 14 M cubic meters on the coldest days, with half of this amount being distributed among heating companies. Connections with grids of neighboring countries Romania and Turkey are either under way or yet to be agreed and cannot be used as alternative sources of gas if a crisis sparks. Experts have explained to the parliamentary committee that the construction of a gas connection with Romania, on the other hand, will not meet the deadline, which is April, and even if completed, it would be unusable due to grid incompatibility. Transit gas pipelines could also provide Bulgaria with some 38 M cubic meters of gas. Building links with Turkey is also due to start soon, as Bulgargaz and Bulgargransgaz's Chief Executives went to Turkey's capital Ankara on Wednesday to sign a Memorandum on co-operation regarding the construction of such connections
Source: investor.bg (13.03.2014)

5 Bulgarian + 1 Russian firms to build South Stream Consortium of Russian company Stroytransgaz and five Bulgarian companies will take over the construction of the Bulgarian section of the South Stream, two independent sources said. The news comes days after Brussels announced that it postpones negotiations with Russia on the South Stream, but the Bulgarian Minister of Economy Dragomir Stoynev said that freezing does not stop the work. The project company South Stream Bulgaria neither confirmed nor denied the information that Stroytransgaz was selected as the main contractor. The Ministry of Economy also declined to comment on the issue. Due to the confidentiality requirements, the consent of the bidders is needed to publish their names. Official information from the project company to date is that the auction involved 11 candidates and that four were admitted to the second stage. South Stream will be the largest construction contract in Bulgaria to date - more than EUR 3.5 billion. The construction of the pipeline is expected to boost the development of northern Bulgaria and the entire economy of the country , as the project will include native companies and workers. According to the non-confirmed information, the five Bulgarian companies that will participate in the construction of the South Stream are Industrial Construction Holding, Technoexportstroy , Glavbolgarstroi ( GBS ), Ponsstroyengineering and PST Holding .They are united in a joint stock company Gazproekt South with a capital of BGN 50,000. According to the Commercial Register, each five of the companies have an equal share in the joint stock structure.
Source: Standart (17.03.2014)

The court cancels Heat Supply Shumen’s sale Shumen regional court cancelled powers of the new Board of Directors of Heat Supply Shumen. This became a fact with a decision of the court from last Thursday. The thermal power plant is declared bankrupt; its activity is stopped and the municipality is deprived of the right to manage and decide on the company’s property. The right is rendered to Heat Supply Shumen’s assignee. The news came after on the 5th of March Shumen’s mayor Krasimir Kostov endorsed 100% of the local company’s shares. In addition on the 11th of March the new owner Energosnabdyavane was entered in the Registry agency. At the same time the heat supply was in a procedure of bankruptcy due to a debt of over BGN 22 million to Bulgargaz. On the 10th of March the company’s assignee informed the court that she has no information of the privatization concluded deal in parallel.
Source: Monitor (18.03.2014)

Debts of Sofia Heating Utility to Bulgargaz Swell to BGN 0.5B The debts of heating utility Toplofikatsiya Sofia to the Bulgarian Energy Holding (BEH) have increased to BGN 555 000 000. The debts of the heating utility increased after BEH was forced to yet again buy a portion of the debt of Toplofikatsiya Sofia to state-owned gas supplier Bulgargaz worth BGN 128 M. The debt mostly consists of unpaid bills for gas supplies from Bulgargaz. The Sofia Municipality, the sole owner of the Sofia-based heating utility, is said to have made no constructive proposals for settling the debts of the company to state-owned gas supplier Bulgargaz.
Source: Capital (19.03.2014)

Toplofikatsiya Sofia’s debt to Bulgarian Energy Holding reaches BGN 555 mln Sofia Municipality, as sole owner of the heating utility Toplofikatsiya Sofia, has not made any constructive proposals for the payment of the debts the company has amassed to Bulgargaz EAD, the press office of the Bulgarian Energy Holding (BEH) announced. Since the society has to receive the heating service, which requires supply of natural gas, and as a result of the lack of actions and any proposal for possible payment of the debt, BEH was forced, for yet another time, to buy another share of the debt of Toplofikatsiya Sofia to Bulgargaz, of BGN 128 million. Thus, the debt of the heating utility of the capital city Sofia to BEH and Bulgargaz amounts to BGN 555,000,000.
Source: Agency Focus (19.03.2014)

Gas price to fall by 4.56% in Bulgaria The price of natural gas will fall nearly 2 times higher than what Bulgargaz asked for, Standart daily reports citing regulator president Boyan Boev. He announced that the Commission plans to cut the price of natural gas with 4.56%. As a result, from April 1, industry and district heating will cost BGN 601.25 without VAT and excise duty instead of the current BGN 630. This is much larger discount than the 2.73% demanded by Bulgargaz. It is not yet clear whether the decrease in the price of gas will affect the cost of heating and hot water. The regulator has the right to change the price of the latter, if the cost of gas changes by 5%.
Source: Standart (21.03.2014)

Heating utility in Bulgaria’s capital owes BGN 191 mln to state-run operator Heating utility Toplofikatsiya-Sofia, servicing the territory of the Bulgarian capital city, owes BGN 191 million to the state-run operator Bulgargaz. The information was announced in the frames of today’s open sitting of the State Energy and Water Regulatory Commission (SEWRC) at which the watchdog discusses the natural gas price as of April 1, 2014. “We will seek the money from Toplofikatsya through the court after all other means are exhausted,” said Alexandar Petrov, head of the license activity and corporate relations department at Bulgargaz.
Source: Agency Focus (26.03.2014)

Bulgaria energy watchdog offers gas price cut, operators eyes hike Working group with the State Energy and Water Regulatory Commission (SEWRC) proposes a 4.57% decrease of the natural gas price as of April 1, while the state-run operator Bulgargaz proposes a 2.73% increase from the same date. At an open sitting the energy watchdog examined the proposal of the working group, FOCUS News Agency reporter said. Bulgargaz will file an objection against SEWRC’s propos
Source: Agency Focus (26.03.2014)

Bulgaria to Take Part in Project for Floating LNG Terminal near Kavala Bulgaria will participate in the construction of a floating liquefied natural gas terminal near the Greek city of Kavala in a bid to secure constant access to natural gas. Talks on the project are to be wrapped up by end-2014, according to the authorities in Athens. The idea to build a floating LNG terminal belongs to Greek state-owned gas company DEPA, which is in talks with the Bulgarian government for joint construction works. The construction of the facility will result in the establishment of a gas distribution network, thereby allowing Bulgaria to receive liquefied natural gas from Greece with the option of transporting it to Romania and Serbia. Experts have suggested that the construction of this vertical gas pipeline in the sea near Kavala will guarantee Bulgaria's energy security. Greece already has an LNG terminal on the islet of Revithoussa. Greece' Foreign Ministry announced that the agreement with Bulgaria was to be ratified by end-2014. The supply mechanism envisages a network of gas grid interconnections which will be supplied by the existing Greek LNG terminal, by one floating LNG terminal, and mainly by the Trans Adriatic Pipeline (TAP), which will supply Azeri gas to Europe. Romania's government is also interested in joining the project for the floating LNG terminal at Kavala, according to Greek energy company DEPA.
Source: Darik Radio (31.03.2014)

Bulgargaz gets BGN 120 million loan Energy Minister Dragomir Stoynev signed a BGN 120 million loan to Bulgargaz to support heating company Toplofikacia. The different heating companies have obligations to Bulgargaz but these are not drastic, the minister noted. "In 2009 we had a promise from Gazprom that it would ensure supplies for Bulgaria and the Ukraine. It would be strange for Ukraine to stop deliveries to Europe, after Europe has done so much for Ukraine" the minister noted. According to Stoynev, Bulgaria has a contract for up to 3 million cubic meters from Greece per day. Daily consumption is between 8-9 million cubic meters, thus Bulgaria's stocks would not hold for to long in the case of a supply cut. Bulgaria has signed a supply memorandum with Turkey. The link from Romania was scheduled to be ready in April, but according to experts, it will be delayed to the end of March due to a collapse. The Serbian change of government slows down the development of the Bulgarian – Serbian energy connections, but the old government has signed a contract to supply 1 billion cubic meters from Bulgaria's Shah Deniz 2, the energy minister informed.
Source: Standart (31.03.2014)

Insolvency of Heat Supply - Shumen blocks new owner Next winter Shumen will again be without heat supply after a few weeks ago the district court announced the local district heating company bankrupt. This happened a few days after Heat Supply - Shumen was privatized and the new owner announced that by fall will reopen the utility. Reasons for the decision were an application of the trustee of the company and concerns that creditors will get their money. With the announcement of the company in bankruptcy the plans are postponed at least until the appeal procedure goes. Shumen Regional Court accepted the arguments of the trustee Elvira Tancheva and declared the company bankrupt. This terminated the company's activities and the powers of its governing bodies and the right to dispose of the property is provided to the trustee.
Source: Capital (16.04.2014)

Turkey starts works on gas link with Bulgaria – media Turkish state-owned gas company Botas has launched the construction of a gas interconnector between Turkey and Bulgaria, Sofia-based media reported. Botas has started horizontal drilling for the 175-kilometre gas pipeline, the Bulgarian National Radio reported last week. The interconnector is expected to be completed in 2015 and to carry Russian gas which reaches Turkey via the Blue Stream pipeline, BNR added. Earlier this month, the Bulgarian and Turkish energy ministers signed a memorandum of understanding on the construction of the gas link. The Bulgarian section of the gas interconnector will be built by the state-owned gas transmission system operator Bulgartransgaz. On Tuesday Russian gas giant Gazprom said that the deputy chairman of the company's management committee, Alexander Medvedev, and Turkey's energy minister Taner Yildiz discussed in Ankara the options of increasing the capacity of the Blue Stream gas pipeline from 16 billion cubic metres (bcm) to 19 bcm a year. The 1,213 km-long Blue Stream gas pipeline was launched in December 2002 for direct gas deliveries to Turkish gas consumers via the bottom of the Black Sea.
Source: investor.bg (23.04.2014)

Trade with natural gas saved the financial status of Bulgargaz Trade with 100 million cubic meters of natural gas has allowed the state company Bulgargaz to secure financially in 2013, the annual report of the company says. According to the report, after in May 2013 not a single a bank agreed to grant the troubled company a loan of USD 150 million, it has devised another way to obtain the money. Bulgargaz signed two contracts with the German- Russian supplier of natural gas - VIEE Bulgaria, as 50% in the company is held by Gazprom. Under the first contract Bulgargaz sold in July VIEE 100 million cubic meters of gas from Chiren storage for BGN 60.5 million. In November, however, the company has bought back the same the quantity, but at a higher price. There is no actual transfer of fuel in this contract. In the second contract Bulgargaz bought 100 million cubic meters of gas from VIEE who immediately sold it back to the company, but with the provision to buy it back at the beginning of 2014. Deals with German- Russian company are indicated as "loan“in the balance of Bulgarian company. Ultimately Bulgargaz ends the financial year at a profit of BGN 62 million, which is an increase of 154.73% compared to 2012 when the company had a loss of BGN 113.6 million.
Source: econ.bg (07.05.2014)

BEH had reduced by 85% taxes towards subsidiaries Bulgarian energy holding has cut taxes that it collects from subsidiaries for rendering of services by 85%. This became possible via signed last November annex to the contract between BEH and Its holding companies from 2009. As a result the energy holding reported reduction in revenues in the first three months of the year, as compared to the same period of last year by nearly 94%. That is to say that the decrease is from almost BGN 5 million to BGN 309 thousand. Reduced revenues from BEH’s subsidiaries are offset by 312% growth in financial revenues. The increase is explained by proceeds to loans granted to related parties during the second half of 2013 and first three months of this year. For the first three months of the year BEH’s financial result is to the amount of BGN 10.2 million. For the entire 2013 the holding is at a profit to the amount of BGN 227 million. Dividends deposited in the holding from its subsidiaries in 2013 are assessed to BGN 235.7 million.
Source: Monitor (08.05.2014)

Plamen Oresharski: At present there is no reason to anticipate gas supply cuts “The situation in Ukraine has been tense right from the beginning. It is true that there has been an escalation in recent weeks. We have not changed our position, urging both parties involved to refrain from provocations ; authorities in Ukraine particularly to lead an integration policy and rely on diplomatic and political means to resolve this conflict”, Prime Minister Oresharski said at briefing in the National Assembly . Asked whether there was a threat to gas and fuel supply to Bulgaria, the Prime Minister said that he hoped the threat was hypothetical, although there were various comments about the risks associated with gas transmission. “At present we have no reason to anticipate gas supply cuts. Of course, there is always a risk in a situation like this”, Mr. Oresharski added. Asked about the licenses of electricity distribution companies, the Prime Minister pointed out that there were uniform procedures, outlined in the law. “The moment [distribution companies begin to comply with] the law, the procedure to revoke the license, which is currently underway, would be dropped. If they do not comply with Bulgarian legislation, the State Energy and Water Regulatory Commission will likely take away their licenses. My instructions have always been to observe the law”, the Prime Minister said.
Source: Novinar (08.05.2014)

Petroceltic 2013 revenues in Bulgaria at $82 mln Irish oil and gas exploration and production company Petroceltic International said on Friday its revenue from Bulgarian operations totaled $82 million (59.8 million euro) in 2013. Petroceltic International's 2013 total revenue amounted to $197 million, it said in a preliminary results announcement. Total production last year stood at 25.2 thousand barrels of oil equivalents per day (Mboepd), 4.8 Mboepd of which relate to Bulgaria. In 2013, Petroceltic invested over $40 million relating to development in Bulgaria, with the majority of this capital focused on the sub-sea tie-back of the Kaliakra-1 discovery well, which commenced production in September, and some advance pipe lay work in preparation for the Kavarna East development in 2015. It also drilled the Kamchia exploration well which was unsuccessful. Petroceltic is reassessing the exploration potential in the Galata concession in preparation for potential future drilling activity. Petroceltic International, which merged with Melrose Resources in a deal completed in October 2012, is focused on North Africa, Mediterranean and the Black Sea regions.
Source: Capital (19.05.2014)

Bulgaria ranks 73rd in the world in terms of natural gas production Bulgaria is the 73rd largest natural gas producer in the world with 410 million cubic meters, according to 2012 data compiled by the US Central Intelligence Agency (CIA). The US is leading the CIA chart, followed by Russia, Iran, the EU, Canada and Qatar. In 2013, however, the National Statistical Institute (NSI) saw natural gas production in Bulgaria drop to 278 million cubic meters over some difficulties in the development of the country’s main gas fields near Kavarna and Kaliakra. Domestic natural gas output in 2013 accounted for 9.7% of the country’s annual consumption of 2.861 bcm.
Source: Presa (27.05.2014)

US shale gas giant Chevron is leaving Bulgaria U.S. oil company Chevron is withdrawing from Bulgaria. Chevron has not been active in Bulgaria for several years. In 2011 the company received a permit to extract shale gas in northeastern Bulgaria, but then a moratorium was imposed on activities using fracking for gas extraction in Bulgaria. "No self-respecting company can afford to lose money in the absence of perspective and the apparent lack of interest of a number of Bulgarian governments in the development of one of the few options for local oil and gas ... Unlike other companies, Chevron can not be "operated" by a Bulgarian or Balkan way, applying the methods that worked well elswhere by motivating political circles and civil servants" said in his blog energy expert and Bulgaria's former ambassador to Moscow Ilian Vassilev. Despite the withdrawal from Bulgaria, Chevron will continue its projects in Romania and Poland. Chevron Romania received some concessions for the exploration and extraction of shale gas in the country. One is in the northeastern part and covers an area of 6350 square kilometers and the other in southeastern Romania, with an area of 2711 sq. km. The group has already started exploration activities in some of the areas and experimental production is expected to begin this year. According to local media, revenue for the Romanian state will be between 3.5% and 13% depending on the size of the deposits. Attempts by the company to start operations were interrupted twice last year after opponents of shale gas extraction blocked the company's machines .
Source: Standart (28.05.2014)

Bulgaria has gas reserves for 4 months The Bulgarian government can ensure natural gas supplies for at least three to four months if a price dispute between Moscow and Kiev leads to supply disruptions, Deputy Prime Minister Daniela Bobeva said on Monday, Reuters reports. Bulgaria is one of the European Union countries most exposed to possible gas supply cuts, as it gets almost all of its gas from Russia's Gazprom via one route through Ukraine. "We made a decision to increase the gas stockpile, and we also have ideas for alternative supplies," Bobeva told reporters. Russia cut off gas to Ukraine on Monday in a dispute over unpaid bills that could disrupt supplies to the rest of Europe and set back hopes for peace in the former Soviet republic. In a separate statement, the Bulgarian energy ministry said gas inflows from Russia had not been disrupted for the time being. It said the country had gas stocks that could meet demand for at least 100 days at about 65 percent of the daily need. The Balkan country can also reverse an existing gas pipeline with Greece and receive additional quantities of up to 3 million cubic meters (mcm) per day from Greece in case of emergency, Reuters reminds. The country's daily gas need stand at an average of 3.3 mcm per day.
Source: Standart (17.06.2014)

Russia halts gas supplies to Kiev Ukraine says Russia has cut off all gas supplies, in a major escalation of a dispute between the two nations. "Gas supplies to Ukraine have been reduced to zero," Ukrainian Energy Minister Yuri Prodan said. Russia's state-owned gas giant Gazprom said Ukraine had to pay upfront for its gas supplies, after Kiev failed to settle its huge debt. Gazprom had asked Ukraine's state gas firm Naftogaz to pay $1.95bn (?1.15bn) of the $4.5bn it said it was owed, BBC reports. It said it would continue to supply gas to Europe, although Gazprom chief Alexei Miller warned there now were "significant" risks for gas transit to the EU via Ukraine. Ukraine has enough reserves to last until December, according to Naftogaz. Later, the White House urged Moscow to resume talks with Ukraine, saying an EU proposal that Kiev pay $1bn on Monday and the rest in instalments was a "reasonable compromise". Russia-Ukraine ties remain tense since Moscow annexed Crimea in February. Kiev says Moscow backs separatists in the east of the country. Russia denies the charge.
Source: Standart (17.06.2014)

Bulgarian Energy Holding diversifies portfolio to avoid financial risk The Bulgarian Energy Holding has started redistributing its funds among various banks with the aim to reduce risk arising from concentration of assets in one bank. Presently no subsidiary of the BEH holds over 25% of its funds in a single bank. A few months ago the Corporate Commercial Bank held 72.62% of Bulgargas assets. The company informed that a client made a payment on 30.12.2013 in the amount of 92.78% îf assets. Thereafter the company announced several public procurements to select other banks. At that time Bulgartransgas had contracts with 5 banks, but the CCB held 31.12% îf its assets. The firm noted that the contract predated the rules against fund concentration and its early termination would result in significant losses.
Source: Standart (23.06.2014)

Bulgaria cuts Q3 natgas price 1.81% q/q Bulgaria's energy regulator said on Monday it has cut the gas price by 1.81% quarter-on-quarter for the third quarter of 2014, below the price requested by the country's gas monopoly Bulgargaz. The maximum price Bulgargaz can charge end suppliers and customers per 1,000 cubic metres of natural gas is 601.69 levs, compared with 612.8 levs per 1,000 cubic metres requested by Bulgargaz, the State Energy and Water Regulatory Commission (SEWRC) said in a notice on its website. The price limit at which Bulgargaz can sell natural gas to customers who are connected to its low pressure network is 609.41 levs per 1,000 cubic metres, SEWRC added. The price changes will take effect as of July 1 and does not include value-added tax (VAT). Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: Standart (01.07.2014)

CEO of Bulgarian state holding co BEH resigns The state-run Bulgarian Energy Holding (BEH) said on Thursday its executive director Ivan Yonchev resigned from the position due to poor health. After Yonchev's resignation, Bulgarian energy minister Dragomir Stoynev appointed Jacklen Cohen as a member of the board of directors of BEH, it said in a press release. BEH incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: Standart (11.07.2014)

CPC Hits Bulgargaz With Record Fine Bulgaria's Commission for Protection of Competition (CPC) imposed the record fine of over BGN 23 mln on Bulgaria's state-owned gas supplier Bulgargaz, reports BGNES wire service. The company was fined BGN 23,377,600 for abuse of dominant position by imposing dishonest commercial practices. According to complaints of Bulgargaz customers from the Overgaz group and Sofiagaz, the supplier imposed on them contracts, which require them to consume even quantities of gas every day, or they would be penalised by a 10% price increase. The record fine is just 0.5% of the Bulgargaz annual turnover. The maximum share is 10%. CPC, however, multiplied the percentage of the fine by 2.5 – the period in which the company was imposing those requirements. The previous record fine, BGN 15,988,300 was imposed by CPC in 2012 on the official distributor of Hyundai cars for Bulgaria – Industrial Commerce and its daughter company Hyundai Leasing.
Source: investor.bg (31.07.2014)

Over 68 million lev will cost the construction of gas connection between Bulgaria and Serbia on our territory, show the estimates of the Ministry of Economy. Construction itself will cost 67.7 million surveillance - 300 thousand and consulting services - 200 thousand link building will be co-financed with money from the operational program "Competitiveness" for the past programming period and for the future to 2020 plan facility needs to operate until the end of 2017 and will enable Bulgaria to have another alternative route for Russian gas. Serbian is the third link in Bulgaria, financed with funds.
Source: Trud (04.08.2014)

Bulgaria's Bulgargaz plans to seek 1.71% hike in Q4 gas tariff Bulgaria’s gas monopoly Bulgargaz said it plans to propose to the country’s energy regulator to increase wholesale prices of natural gas by 1.71% to BGN 612 per 1,000 cubic metres in the fourth quarter of 2014. Bulgargaz will make public its final proposal for the fourth-quarter natural gas prices on September 10, upon submitting it with the energy regulator, the company said in a statement posted on its website on Monday. The adjustment in Bulgargaz's tariff, made on a quarterly basis, must be approved by the energy regulator to take effect. Bulgargaz is a subsidiary of state-owned Bulgarian Energy Holding. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: Class (13.08.2014)

Bulgaria’s coal producer Mini Maritsa Iztok launches tender for BGN 13 mln Bulgarian coal producer Mini Maritsa Iztok has opened a BGN 13-million tender to find a contractor for heavy equipment repairs over the next three years. The company is currently facing bankruptcy procedures requested by its largest creditor Fibank. Mini Maritsa Iztok is also seeking to borrow BGN 50.16 million from some local lender in order to carry out its investment programs. The company is ready to pay over BGN 13 million to the bank for a 10-year loan with a 2-year grace period. Meanwhile, TPP Maritsa Iztok 2 has negotiated a BGN 15-million overdraft from United Bulgarian Bank (UBB) to cover short-term cash needs as its money remains blocked at Corporate Commercial Bank.
Source: Trud (13.08.2014)

BEH decides to raise the capital of NPP Kozloduy and Maritza Iztok The Bulgarian Energy Holding has come to the decision of rising the capital of the two largest energy companies in Bulgaria. While the capital of NPP Kozloduy was boosted by BGN 11.5 million to BGN 165 million, the capital of "Maritza Iztok 2" was increased by BGN 1.59 million. The decision was taken on August 4, with the approval of the Minister of Economy Dragomir Stoynev. At the same meeting the Board of Directors of the holding company have decided to reduce the share capital of "Bulgargaz" by nearly BGN 51.4 million, which is covering part of the losses the company realized. The aim of the measures is to achieve a more stable capital base for the companies, BEH explained.
Source: Standart (22.08.2014)

Bulgarian Energy Holding 'Awaiting BGN 1.45 B' from Subsidiaries State-owned Bulgarian Energy Holding (BEH) has to collect a total of BGN 1.45 bln of trade receivables and loans it has given out to filian companies, its interim 2014 report says. The bulk of this money, or BGN 1.2 bln (82% of the total), was spent on assistance to the National Electric Company (NEK), with all the loans granted to NEK now consolidated into a single one to be paid in ten years and bearing a 4.49% yearly interest, the document shows according to Trud's website. BEH has stepped into the second half of 2014 at a profit of BGN 48.1 mln, 86% less than at the same time in 2013. The reports points out that failure to gather dividends from subsidiaries this year is the main reason for the low performance. Of all filial companies NEK itself is facing the hardest time, with a loss of BGN 250 mln in end-June 2014, compared to a profit of BGN 17 mln for the same period of last year. Bulgargaz, the national gas supplier, has registered an improvement, with a positive BGN 42.3 mln (up from BGN 2.6 mln in end-June 2013). However, this is mainly due to debts of Sofia's heating utility Toplofikatsiya Sofia to NEK that Bulgargaz bought out earlier this this year.
Source: Standart (25.08.2014)

Seven Bulgarian companies make it to the Deloitte 500 list of top CEE firms Seven Bulgarian companies made it to this year's Deloitte ranking of the 500 largest companies in the 18 countries of Central and Eastern Europe. At the forefront of Bulgarian firms is Lukoil with a revenue of EUR 3.862 billion, which earned the oil giant the 30th place. Holding company Chimimport is the second Bulgarian company in the Deloitte ranking. It occupies the 41st position with revenues of EUR 3.098 billion. Copper giant Aurubis (65 th) also made it to the top 100 in the ranking with revenue of EUR 2.272 billion. The four other Bulgarian companies in the Deloitte Top 500 are: OMV Bulgaria (222nd with revenues of EUR 917), Bulgargaz (282nd with revenues of EUR 769 million), CEZ Electro Bulgaria (303rd with revenues of EUR 26 million) and Naftex Petrol (438th with revenues of EUR 540 million). The first four places in the overall ranking remained unchanged. Like last year, the list is led by Polish company PKN Orlen, despite a 5.8% decrease in its revenue to EUR 27 billion. The silver medalist is Hungary's oil giant MOL, followed by the Czech Republic's Skoda Auto. Fourth is the Ukrainian Metinvest. Another Ukrainian company - energy firm DTEK advanced from the seventh to the fifth position. The sixth place is occupied by the Czech CEZ, followed by Ukrainian Energorynok. The eighth, ninth and tenth places went to three Polish companies - Jeronimo Martins Polska, PGNiG and PGE. The greatest progress in the rankings - by 259 positions - was achieved by Ford Romania, which jumped to the 170th place. The company's revenues increased from EUR 557 million in 2012 to EUR 1.097 billion in 2013 due to growth in the production of a new car model.
Source: Darik Radio (08.09.2014)

Bulgarian state energy holding firm BEH to raise capital Bulgarian state energy holding company BEH said on Tuesday it will increase its capital. The company ended 2013 in the green and, after paying dividend, has asked the energy ministry for a nod to convert the remainder of last year's profit into capital, BEH's press office said, adding that a higher capital base would send a positive signal to investors. Earlier on Tuesday, news daily Trud reported, quoting data from the commercial register, that BEH will raise its capital by BGN 336 million. It also said BEH will pay BGN 20 million in dividend for last year. Last month, local media reported that three BEH subsidiaries were planning changes to their capital. The country’s sole nuclear power plant (NPP) Kozloduy has asked to increase its capital to BGN 165.6 million from BGN 153.8 million, while thermal power plant (TPP) Maritsa Iztok 2 plans to raise its capital to BGN 40.1 million from BGN 38.5 million. Meanwhile, gas monopoly Bulgargaz has applied to reduce its capital to BGN 206.2 million from BGN 257.7 million. BEH’s non-consolidated after-tax profit rose by nearly 39% to BGN 397 million in 2013 as revenues fell 56% to BGN 246.5 million. BEH incorporates assets that include NPP Kozloduy, Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company, system operator Electricity System Operator, Maritsa Iztok 2 and the Mini Maritsa Iztok coal mines.
Source: Capital (10.09.2014)

Bulgaria Braces for Possible Disruption in Russian Gas Supplies Fearing a price dispute between Moscow and Kiev may lead to disruptions in Russian gas deliveries via Ukraine, Bulgaria is preparing to avert a gas crisis in winter months. According to Bulgaria’s caretaker deputy premier for economic policy Ekaterina Zaharieva, the Russian gas supplies are highly likely to be affected by tensions between Moscow and Kiev prompted by a dispute over prices. Zaharieva told reporters in Sofia on Wednesday that the cabinet is concerned that the dispute, which hasn’t been resolved yet, may lead to a repeat of the crisis of January 2009, when Russia halted gas deliveries to Europe via Ukraine for two weeks. Bulgaria was among the EU countries worst hit by the stoppage. The European Union, Russia and Ukraine are expected to resolve the price issue at a trilateral meeting but yet another delay to those talks has fuelled concerns that a new gas supply crisis is looming. Bulgaria, which relies almost entirely on Russian supplies to meet its gas needs, takes delivery of those supplies only through a pipeline via Ukraine.
Source: Capital (18.09.2014)

Bulgaria to negotiate heavy fuel oil use with EU in case of gas crisis Bulgarian environment ministry said on Friday it will negotiate with the European Commission a permission for prolonged use of heavy fuel oil by the country's heating utilities in case of a gas crisis in the winter. Currently, the heating utilities are allowed to use such fuel for a period of 10 days under the pollution prevention rules. Negotiation with the European Commission will be crucial for Bulgaria to avoid infringement procedures related to exceeding emission limits, the environment ministry said in a press release. On Wednesday, news portal Investor.bg quoted deputy prime minister Ekaterina Zaharieva as saying Bulgaria's Chiren gas storage facility is not 100% full and options are being considered how to fill it ahead of the winter season when a gas crisis is highly likely. On Thursday, Bulgarian energy minister Vasil Shtonov said Bulgaria is negotiating with neighbouring Greece possible gas supplies from the Revithoussa terminal to prepare for a possible disruption of deliveries via Ukraine. The talks with the Greek side also cover providing a reverse flow through the existing cross-border gas interconnector. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: 3e-news (23.09.2014)

Economy and energy minister: Bulgaria will have a gas crisis this fall Whether we will have a gas crisis or not is difficult to predict, but there is a good chance that we could, said caretaker Minister of Economy and Energy Vasil Shtonov to reporters upon opening the forum "Gas - infrastructure, markets and services." "What is important is that we be prepared for this crisis. We are following the processes in Ukraine and the relations between Russia, Ukraine and the European community very closely. We are taking active measures to prevent a possible gas crisis. If they stop or even decrease gas supply the situation in Bulgaria will become severe. This is because we are getting all our gas from the pipe that comes from Russia via Ukraine and Romania, "said Shtonov. We have very little local production, less than 0.5 million cubic meters per day, which is very small as compared with the average consumption during the winter months, the minister said. "Our gas storage facility in Chiren is all that we have. There the problem is that it can yield up to four million cubic meters per day and the less there is, the more the debit decreases. What is good for Bulgaria are the thermal power plants and especially Sofia Central Heating because it accounts for 80% of all the power plant yield in Bulgaria. They all have the opportunity to switch to fuel oil," added Shtonov. "If there is a crisis, it is a matter of a few hours, several hours, during which the gas will remain in the pipes. In this period of 10 hours we must readjust the plants and use alternative fuel," stated the caretaker Energy minister.
Source: Standart (24.09.2014)

Bulgaria to import Azeri gas prior to TAP project - media Bulgaria intends to import small quantities of gas from Azerbaijan prior to the commissioning of the Trans Adriatic Pipeline (TAP). The gas will be transferred through the existing gas system in Turkey, as well as to through a future gas interconnector between Greece and Bulgaria at Komotini via Turkey, Azeri news outfit abc.az said on Friday citing sources from the Bulgarian embassy in Azerbaijan. The deliveries of Azeri gas are expected to start in 2017 from the Azeri state-owned gas and oil company SOCAR to Bulgaria’s gas monopoly Bulgargaz. Earlier this month, during a visit of Bulgarian President Rosen Plevneliev to Azerbaijan for the official launch of the Southern Gas Corridor project, officials of SOCAR and Bulgargaz agreed to start negotiations on the launch of Azeri natural gas supplies to Bulgaria in 2017 via the interconnector between Greece and Bulgaria (IGB Pipeline), which is to be deployed by the end of 2016. The 182-kilometre IGB Pipeline will carry 3.0 bcm of natural gas annually in its initial stage and will have a maximum capacity of 5.0 bcm per year. It will be eventually connected to the Trans Adriatic Pipeline (TAP), part of the Southern Gas Corridor.
Source: Darik Radio (01.10.2014)

Bulgaria to Specify Place for Receiving Azeri Gas by 2020 Bulgaria should specify the point at which it will receive gas from Azerbaijan by 2020, the deadline for the completion of the Trans-Adriatic pipeline (TAP), according to Rovnag Abdullayev, President of the State Oil Company of Azerbaijan Republic (SOCAR). Abdullayev said that the technical issues concerning gas supplies had to be resolved by that time. He also reminded that President Rosen Plevneliev had expressed Bulgaria’s willingness to receive gas supplies 2 years ahead of the initially scheduled date via the Turkish gas transmission grid and the existing gas grid interconnection with Greece. Abdullayev specified that the move would allow Bulgaria to receive 200-300 million cubic meters of gas a year. In September 2013, Bulgaria’s state-owned gas supplier Bulgargaz signed a contract under which the company is to receive 1 billion cubic meters of gas a year from Shah Deniz II as of 2019.
Source: investor.bg (14.10.2014)

Bulgargaz Cuts Gas Supplies to Bulgarian Heating Utilities by 50% State-owned gas supplier Bulgargaz has sent letters to all heating utilities to inform about supply cuts necessitated by the reduction in gas deliveries received via the pipeline through Ukraine. Valentin Terziyski, head or the chamber of energy sector workers at the Bulgarian Industrial Association (BIA), explained in a Thursday interview for the Bulgarian National Television that the decrease would amount to 50% of the quantities requested by the heating utilities. He argued that there were two major problems, including the conflict between Russia and Ukraine, over which Bulgaria had no direct influence, and the financial problems plaguing the domestic energy system. Terziyski, as cited by investor.bg, pointed out that Bulgaria needed fresh financial resources to secure alternative fuel supplies. Meanwhile, Wednesday’s trilateral talks between Russia, Ukraine and the European Commission, which lasted around 12 hours, yielded no decision on securing gas supplies to Kiev in winter. Negotiations are expected to continue on Thursday.
Source: vesti.bg (31.10.2014)

The largest state-owned enterprise Bulgarian Energy Holding (BEH) remains in large debt, its report for the first nine months of the year shows. The company has handed out loans and has to take from related parties and Heat Supply-Sofia a total of over BGN 1.75 billion. As to the first quarter of 2014 the figures amounted to BGN 1.5 billion. Much of this amount is provided by the bond issue of BEH, which matures in 2018. The majority of the loans have been granted to the troubled subsidiary NEK. Furthermore, BEH group includes Electricity System Operator, Bulgargaz, TPP Maritza Iztok 2, Bulgartransgas, NPP" Kozloduy, Bulgartel and Mines Maritsa Iztok. Revenues of BEH (mainly from dividends) for the nine months are BGN 148.6 million less because of poor financial results of its subsidiaries. The holding has reduced the price of its services to companies in the group.
Source: Trud (03.11.2014)

Heating utility in Bulgaria's capital trims investment plans Heating utility Toplofikacia Sofia announced a squeeze in its investment plans for the year ahead due to blocked money at Corporate Commercial Bank, said Sofia Municipal Council deputy chairman Nikolay Stoynev. In Stoynev’s words, nearly the heating utility held nearly BGN 80 million on deposit with the troubled lender. Stoynev also said the blocked money would not weigh on Toplofikacia Sofia’s core business.
Source: Standart (04.11.2014)

Bulgargaz Asks For 2.07% Hike Of Gas Price Bulgargaz will ask of Bulgaria's energy watchdog DKEVR to increase the price of natural gas by 2.07%, as of the beginning of 2015. The supplier announced that he would ask for a price of BGN 615.92 for 1000 cubic metres, without excise duty and VAT. This would be an increase of BGN 12.84, compared to Q4 2014. Bulgargaz justifies the price hike with the exchange rate of BGN-USD, the prices of alternative fuels at the international markets and the price regulation requirements. According to Dnevnik.bg, the demand will be tabled on December 11.
Source: Class (12.11.2014)

Bulgargaz Has No Reason to Seek 2% Price Hike, Regulator Says The intention of Bulgargaz to seek a 2% increase in the price of natural gas is “groundless”, a member of Bulgaria’s energy regulator said on Wednesday. “If you want me to say it explicitly – no, they have no grounds for an increase of that scale,” Dimitar Dimitrov said. Bulgargaz said on Tuesday it would ask the energy watchdog, DKEVR, to allow it increase the price of natural gas by 2.07% from the beginning of next year, citing strong dollar and uncollected revenue. According to Dimitrov, while it is logical to seek a certain increase of gas price due to a rise in the dollar, the portion of the planned increase attributed to overdue debt owed to Bulgargaz by consumers seems inflated. The method used by Bulgargaz to calculate overdue debt doesn’t fully correspond to the regulator’s definition of revenue not received in full, Dimitrov explained, adding that DKEVR is going to consider potential changes in the price formation mechanism to prevent distortion of Bulgaria's gas market. According to dnevnik.bg, Bulgargaz will submit a proposal for a gas price increase to DKEVR on 11 December.
Source: Sega (13.11.2014)

EU should work on becoming a single gas buyer – Sefcovic The European Union as the world's biggest energy consumer should explore ways to buy gas as a group, the European Commission's new Energy Union boss said. The idea was put forward earlier this year by Poland's then prime minister Donald Tusk, as one option for standing up to Russia and its state gas company Gazprom. Tusk takes up an EU job as President of the European Council next month. Many in Brussels said the single buyer plan raised anti-trust issues and was inoperable, even though Tusk's broader support for a strengthened energy union has gained ground as relations with Russia, the bloc's biggest energy supplier, have deteriorated. The EU pays around 400 billion euros (320 billion pounds) per year for imported fossil fuels and the European Commission, the EU executive, has set as priorities cutting energy use and diversifying supplies, as well as a closer energy union, based on improved infrastructure to share energy across borders.
Source: Standart (18.11.2014)

Banks reject a loan to Bulgargaz for a second time For a second time in 6 months, banks have refused to provide a loan to Bulgaria’s state-owned gas supplier Bulgargaz. In October, a public procurement for BGN 140 M was opened, which was subsequently terminated, according to the website of the Public Procurement Agency, as cited by the Bulgarian National Radio. Another public procurement for BGN 90 M was opened in June, but it also failed to result in a loan for Bulgargaz. It is now unclear whether the state-owned gas supplier will manage to find money to pay in advance for the next gas shipment from Gazprom. Caretaker Economy and Energy Minister Vasil Shtonov argued that the provision of working capital for Bulgargaz had to be one of the first tasks for the next government. The financial condition of Bulgargaz is aggravated by the fact that 98% of its funds are blocked at the Corporate Commercial Bank (KTB, Corpbank).
Source: Sega (28.11.2014)

BEH provides Bulgargaz with loan in order to pay Gazprom back Bulgarian Energy Holding (BEH) will provide Bulgargaz with a loan, so that the gas company can pay for the natural gas, supplied by Gazprom, Severin Vartigov from BEH announced at a conference. Several days ago, it became clear that none of the banks in Bulgaria would grant a loan to the company. Bulgargaz faces some financial difficulties as it has BGN 120 million of uncollected receivables and almost BGN 20 million blocked in Corporate Commercial Bank.
Source: Duma (05.12.2014)

Drilling at Bulgaria’s Khan Asparuh Block Delayed Until 2016 Hydrocarbon drilling at Bulgaria’s Khan Asparuh Black Sea block will be delayed by up to a year due to the slump in global oil prices, the international consortium holding the exploration licence has decided. According to mediapoopl.bg, the consortium comprising France’s Total, Austria’s OMV and Spain’s Repsol has agreed to alter its budget and the exploration plan for next year, under which drilling should have started in mid-2015. The consortium cited the “considerable and incessant decline of global oil prices that has occurred over the past few months, affecting the internal budgets of the companies” involved in the project as the reason for the temporary freeze. It has also informed Bulgaria’s Energy Ministry about its decision. The start of drilling has been postponed until 2016 with the three members of the consortium hoping to commence exploration works at the beginning of the year rather than in mid-2016. The decision entails suspension of a number of procurement orders for the supply of equipment, food and fuel to the drilling platform.
Source: Trud (16.12.2014)

State watchdog sets gas prices Friday The State Committee on Energy and Water Regulation will set the price of natural gas in the first quarter of 2015 at a meeting behind closed doors on Friday. This will be the price paid by end suppliers and clients, BGNES reported. SCEWR member Dimitar Dimitrov said, "It is hard for us to say whether there will be a gas shortage because of Bulgargaz this winter. The price of natural gas will not affect suppliers adversely in the first quarter of next year." He added that in winter gas suppliers enjoy higher revenue and therefore pay the public supplier more, which minimizes the risk of shortage. The quantities available at Chiren gas depot – usually between 140 and 160 mcm – could meet domestic demand for a given time. However, it isn't economically feasible to hold this gas there and import other gas, Dimitrov said. Bulgargaz's decision is logical and probably supported by the shareholders. He assured there was always between 100 and 150 mcm of gas at Chiren at any point in time.
Source: Standart (17.12.2014)

Bulgaria, Serbia to Speed Up Work on Gas Interconnection Grid Sofia and Belgrade will step up efforts to build the interconnector pipeline linking the two gas grids, ministers from the two countries have announced. A working group will be set up by the end of December to draft a timetable and to elaborate on the project's more specific parameters, Bulgaria's Economy Minister Bozhidar Lukarski and Serbia's Mining and Energy Minister Aleksandar Antic agreed while meeting in Belgrade on Tuesday. A Bulgarian delegation is currently in the Serbian capital for the third annual meeting between China and countries from Central and Eastern Europe. Alongside Bozhidar Lukarski it includes Regional Development Minister Lilyana Pavlova. The memorandum to build the interconnector was signed in 2012, and earlier this month Antic revealed that Belgrade was already preparing tender documents. Similar projects have been under way aiming to connect Bulgaria to Romania and Greece, but have suffered delays for various reasons. A link with Turkey is also expected to secure part of Bulgaria's gas flow in the mid-term, enabling access to the prospective Southern Gas Corridor which is to supply Europe via Turkey and Greece.
Source: Novinar (18.12.2014)

Bulgaria's Bulgargaz to draw EUR 3.6 mln credit Bulgarian gas monopoly Bulgargaz has decided to draw a short-term loan of BGN 7 million from D Leasing, a subsidiary of D Commerce Bank, local media reported on Wednesday. The loan will have an annual interest rate of 5%. Last month Bulgargaz cancelled a tender to select banks to provide it with revolving credit lines worth up to BGN 139 million in total after it failed to attract any bids. The company did not say how it planned to spend the proceeds from the credits. Earlier this month, an official of a unit of state-owned Bulgarian Energy Holding (BEH), Bulgargaz's parent company, said the holding company intends to provide a short-term loan to Bulgargaz to pay its liabilities to Russian gas giant Gazprom. He said at the time that Bulgargaz has to pay USD 100 million to Gazprom by the end of December, including USD 50 million in overdue payments.
Source: Capital (18.12.2014)

Natural Gas Price Drops by 0.30 Leva The State Energy and Water Regulatory Commission (SEWRC) approved a price of 603.14 leva for 1,000 cu m of natural gas exclusive of excise duty and VAT as of January 1, 2015. This means that the price will be 0.30 leva lower than the current one. The decision was published on the SEWRC website on Monday. Bulgargaz has requested an increase by 2.07 per cent or 12.48 leva as of January 1.
Source: Standart (23.12.2014)