Bulgarian Energy Regulator Launches Inspection of Overgas The Energy and Water Regulatory Commission (KEVR) announced on Wednesday that it is launching an inspection into Bulgaria's largest gas company Overgas. The extraordinary inspection will examine the implementation of the company's licence obligations and the financial state of Overgas. KEVR assured that it will continue to monitor the developments surrounding the dispute between Overgas and the Russian energy giant Gazprom, which threatened to halt gas supplies to the customers of the former from January 1. The chairperson of KEVR Ivan Ivanov is in constant contact with representatives of institutions and organisations in the energy sector and all interested parties committed to solving the issue. At the request of KEVR, hearings of representatives of the management of the state-owned Bulgargaz and Overgas Networks were held on Monday and Tuesday. The members were informed of the agreement reached between the two companies, which guarantees uninterrupted gas supplies to the end household and industrial customers of Overgas. KEVR highly appreciated the efforts of the Bulgarian Energy Holding (BEH), Bulgargaz, Bulgartransgaz and Overgas Networks in solving the issue. At the insistence of KEVR, Bulgargaz and Overgas made a commitment to inform the regulator of any changes to the situation. If the need arises, KEVR has readiness to fulfill its functions by taking actions in compliance with the acting legislation and within the framework of its competencies. On December 30 last year, Bulgarian officials received a copy of a letter from Gazprom to Overgas informing that gas supplies to the latter will be halted from January 1. According to reports, there were unsettled commercial issues between the two companies. On December 31, Bulgargaz and Overgas reached an agreement that the former will supply gas to the customers of the latter.
Source: econ.bg (07.01.2016)

Tsvetan Vasilev made cessions in CCB for BGN 81 million. The majority owner of bankrupt Corporate Commercial Bank - Tsvetan Vasilev, made cessions, through which he is trying to save BGN 81 mln of his money in the CCB. This is clear from the list of cessions and interceptions made by individuals and companies with money in the bank after it was placed under the special supervision on June 20th, 2014. The company Bromak of Tsvetan Vasilev has asked five cessions totaling EUR 41.41 mln, or nearly BGN 81 million. Other companies associated with Tsvetan Vassilev, also arranged offsetting receivables. Among them are Sana Space Hotel Hissar, Health and Wellness, Corsi Mountain Resort, Kostenets HHI, Infrastructure Company, Partner Leasing, Planasat, Gypsum, Rousse Shipyard West, Telish. Military Factory Dunarit made interceptions for BGN 13.35 mln, EUR 33.25 mln and USD 7.7 mln. Grisha Ganchev firm Elite Petrol has made several interceptions for BGN 40 mln, EUR 2.7 mln and USD 12.7 mln. Another company of the businessman - Litex Motors, has made deals with BGN 47 million and EUR 15.5 mln.
Source: Standart (07.01.2016)

Bulgaria’s utilities regulator to probe private provider Overgas Bulgaria’s Energy and Water Regulatory Commission said on January 6 that it would check the “execution of licence duties and the financial situation” of Overgas, the private gas provider that has become embroiled in a public row over the past week after being cut off from Russian gas deliveries. At the same time, the regulator praised the efforts made by Overgas and state-owned Bulgarian Energy Holding, through its gas trading arm Bulgargaz and grid operator Bulgartransgaz, to “resolve the problem”. Last week, Overgas was notified by Gazprom Export, a subsidiary of Russia’s state-owned gas company Gazprom, that direct deliveries would be discontinued, instead the gas would be re-routed through Bulgargaz. This prompted a late-evening meeting between Prime Minister Borissov and executives from several state-owned companies in the energy sector on December 30 to discuss the issue and ensure that Overgas’ customers – 55 000 households and 3000 industrial clients – would not be left without gas.
Source: Dnevnik (07.01.2016)

Overgas transferred to Bulgargaz the whole amount for the gas supplied in January Overgas has paid Bulgargaz the full amount of natural gas provided by the public supplier in January. The private gas company reported that under the contract, this can be done in two tranches - on 7 and 15 January this year. The amount for the month is the usual - about BGN 17.5 million, Overgas said.
Source: 3e-news (08.01.2016)

Electricity exports dived by 40 per cent between January 1 and 10, 2016 compared to the same period of 2015, "Troud" reports, citing information of the Electricity System Operator. Electricity production in Bulgaria declined as well, but by as little as 7.56 per cent. Consumption edged down by a mere 0.46 per cent. Green electricity generating capacities linked to the electricity suppliers decreased their output by 32.34 per cent, and those linked to the National Electric Company (NEK) by 20.45 per cent. In the first ten days of the year, hydroelectric power plants produced 51.47 per cent less electricity. The nuclear power plant and the TPPs are the only ones whose production increased in comparison to 2015.
Source: Monitor (18.01.2016)

Bulgarian electricty company NEK cuts loss to EUR 112.6 mln in 2015 Bulgaria's state-owned National Electricity Company, NEK, cut its loss by more than BGN 350 million to BGN 220 million in 2015, the country's energy minister said. Furthermore, the electric company for the first time turns to profit from its regulatory operations, energy minister Temenuzhka Petkova told the Government Meets the Business conference in Sofia, organised by business news publisher Capital on Tuesday. In August, US companies AES and ContourGlobal signed agreements with NEK on a decrease in the prices at which it buys electricity produced by the two companies' thermal power plants. For its part, NEK pledged to pay back its overdue liabilities to the two plants. Also in August, energy minister Temenuzhka Petkova said that NEK owes the two plants around BGN 900 million in total. In November, BEH sent to 25 international banks letters inviting them to provide it with a EUR 650 million loan. NEK is a 100%-subsidiary of state-operated Bulgarian Energy Holding.
Source: Monitor (20.01.2016)

Natural Gas Price to Drop by About 20% in April - Regulator Forecast The price of natural gas is expected to drop by about 20 per cent from the beginning of April, the Chairman of the Energy and Water Regulatory Commission (EWRC), Ivan Ivanov, told journalists Wednesday. The possible decline of the price will result from the consistent downward trend of crude oil prices on the international markets, which is a price-forming element for natural gas in Bulgaria, he added. Taking questions, Ivanov confirmed that the cheaper natural gas prices in the second quarter of the year will also reflect on the price of heating. According to unofficial forecast calculations, heating prices may drop by about 10 per cent. In case heating prices drop, they will influence the price of central heating in the next heating season. Such a decision of EWRC will immediately reflect on the price of hot water.
Source: investor.bg (28.01.2016)

Bulgaria's power exchange mulls adding natgas segment The Independent Bulgarian Energy Exchange (IBEX) is contemplating the addition of a natural gas trade segment, the country's energy minister said. "Our long-term priority is related to the diversification of sources and routes for gas supply, in particular with establishing gas transmission system interconnectivity, the development of local production, and the implementation of the concept for a gas hub," energy minister Temenuzhka Petkova said. However, only Russian gas will be traded on the IBEX initially, with plans to attract more suppliers in the future. Bulgaria imports almost all the gas it needs to cover its domestic needs via a single pipeline from Russia which passes through Ukraine and Romania. The day-ahead power exchange IBEX, developed in partnership with Norwegian-based Nord Pool Spot, was officially launched in mid-January.
Source: Trud (08.02.2016)

Former Bulgargaz CEO Petiyo Ivanov replaces Jacklen Cohen as member of the Board of Directors of BEH At a protocol decision of the Bulgarian Minister of Energy Temenuzhka Petkova, former Bulgargaz CEO Petiyo Ivanov replaced Jacklen Cohen as member of the Board of Directors of the Bulgarian Energy Holding (BEH), the press centre of the Ministry of Energy announced. At a meeting of the Board of Directors of BEH Petiyo Ivanov will be nominated for BEH Executive Director and Nikolay Pavlov for Executive Director of Bulgargaz EAD. Petio Ivanov worked as head of financial controlling and chief accountant of the National Electricity Company and Nikolai Pavlov was CFO and member of the Board of Directors of NEC. The changes are aimed at optimisation of the Bulgarian Energy Holding and enter into force upon entry in the Commercial Register to the Registry Agency.
Source: Monitor (10.02.2016)

By an official decision of Energy Minister Temenouzka Petkova, Bulgargaz Executive Director Petyo Ivanov will take the place of Jacklen Cohen as member of the Council of Directors of the Bulgarian Energy Holding (BEH), the Energy Ministry said in a press release Tuesday. At a meeting of the BEH Council of Directors, Ivanov will be nominated for BEH Executive Director, while Nikolay Pavlov will be nominated for Bulgargaz Executive Director. Ivanov has worked as financial control head and chief accountant at the National Electric Company (NEK), while Pavlov has been financial director and member of the NEK Council of Directors. The changes are aimed at optimizing BEH's work and become effective upon registration in the Commercial Register with the Registry Agency.
Source: Sega (10.02.2016)

Bulgargaz Expects 20.64 Per Cent Reduction of Natural Gas Prices as of April Bulgargaz EAD expects that the price of natural gas effective in the second quarter of the year will be by 20.64 per cent lower, or 321.87 leva per 1,000 cu m exclusive of VAT and excise duty, the company said in a press release Wednesday. The reduction in the price is attributed to the expected lower delivery price of natural gas. Bulgargaz's proposal is subject to final approval by the Commission for Energy and Water Regulation.
Source: Dnevnik (11.02.2016)

NEK Saves BGN 170 Mln Annually from Highly Efficient Energy and Lower Gas Prices The National Electric Company (NEK) saves BGN 170 million annually due to the drop of the natural gas prices and the purchase of highly efficient energy, generated by the heating utility companies, Energy and Water Regulatory Committee (EWRC) Chairman Ivan Ivanov commented before journalists Tuesday. Ivanov explained that the economies from the purchase of highly efficient energy amount to BGN 130 million and the ones from the lower natural gas prices bring additional savings of BGN 40 million. Earlier on Tuesday EWRC had a meeting with the management of Bulgargaz, which is to submit its final estimate about the natural gas price for the second quarter of 2016 on March 10. "In my opinion, they will propose a reduction, which will be over one per cent higher than the current estimate of 20.64 per cent," Ivanov said. The European Commission has not yet pronounced itself on an EWRC report regarding the long-term purchase of energy from the US-owned plants of the Maritsa East energy complex. The Commission opinion is expected in the following months. Ivanov said he is optimistic that the Bulgarian Energy Holding will find the necessary credit so that NEK would be able to pay its obligations to the two US-owned Maritsa East thermo-electric power plants.
Source: investor.bg (17.02.2016)

NEK Saves BGN 170 Mln Annually from Highly Efficient Energy and Lower Gas Prices The National Electric Company (NEK) saves 170 million leva annually due to the drop of the natural gas prices and the purchase of highly efficient energy, generated by the heating utility companies, Energy and Water Regulatory Committee (EWRC) Chairman Ivan Ivanov commented before journalists Tuesday. Ivanov explained that the economies from the purchase of highly efficient energy amount to 130 million leva and the ones from the lower natural gas prices bring additional savings of 40 million leva. Earlier on Tuesday EWRC had a meeting with the management of Bulgargaz, which is to submit its final estimate about the natural gas price for the second quarter of 2016 on March 10. "In my opinion, they will propose a reduction, which will be over one per cent higher than the current estimate of 20.64 per cent," Ivanov said. The European Commission has not yet pronounced itself on an EWRC report regarding the long-term purchase of energy from the US-owned plants of the Maritsa East energy complex. The Commission opinion is expected in the following months. Ivanov said he is optimistic that the Bulgarian Energy Holding will find the necessary credit so that NEK would be able to pay its obligations to the two US-owned Maritsa East thermo-electric power plants.
Source: Sega (17.02.2016)

Gazprom Announces New Gas Supply Route under Black Sea Russian energy giant Gazprom has said it signed a memorandum with Italy's Edison SpA and Greece's DEPA SA on gas deliveries. In a press statement, it has explained that according to the memorandum of understanding signed in Rome, gas will be delivered under the Black Sea "via third countries" to Greece and will be transported "from Greece to Italy with the ame of organizing the southern route of supplies of Russian natural gas from Europe." In practice, "third countries" could mean either Bulgaria or Turkey. The announcement is a major development that follows the demise of the South Stream gas pipeline in December of 2014 and the deadlock of its alternative Turkish Stream caused by tensions between Ankara and Moscow. Russian business daily RBC quotes Mikhail Korchemkin, who heads the East European Gas Analysis, as suggesting that the expression "third countries" in Gazprom's statement means mostly "Bulgaria". It has opined the press statement by Gazprom means a new Black Sea pipeline is now in the planning stage.
Source: 24 chasa (25.02.2016)

During the first phase of the market test no traders stated interest to use the capacity of a Bulgarian-Greek gas interconnector. This prompted an extension of the deadline by one month until March 31. This has emerged from a decision of the Energy and Water Regulatory Commission which obtained permission from the Greek energy regulator. During a similar test in 2013-2014, as little as 1.2 billion cu m of the total 3 billion cu m capacity were reserved by Bulgargaz and Greece's DEPA. Bulgargaz confirmed to "Kapital Daily" that it will participate again but without more participants the economic viability of the project will be hard to prove to prospective creditors.
Source: Duma (09.03.2016)

Bulgaria's Bulgargaz proposes revised 23% cut in Q2 wholesale gas price Bulgarian gas monopoly Bulgargaz proposed on Friday a 23.02% reduction of the wholesale price at which it sells natural gas to its clients as of April 1, revising its previous proposal, which envisaged a 20.3% cut. The tariff of BGN 312.21 per 1,000 cu m, proposed by Bulgargaz does not include value added tax and excise duties, the company said in a notice on its website. The adjustment in the wholesale tariff, made on a quarterly basis, must be approved by the energy regulator to take effect. Bulgargaz is a subsidiary of Bulgarian Energy Holding (BEH), which pools all state energy assets. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: 24 chasa (12.03.2016)

Six Companies Submit Offers to Use Bulgaria-Greece Gas Link Bulgaria's government has received six indicative offers to use capacity of the gas interconnector that is to be built between Bulgaria and Greece, Energy Minister Temenuzhka Petkova has said. These include Bulgaria's national gas supplier Bulgargaz, Greece's DEPA, Italy's Edison, Azerbaijan's SOCAR, US-based Noble Energy (working at Cyprus's offshore gas deposit), and Greek utility company Gastrade. Petkova, quoted by the Bulgarian National Radio, has told reporters the interconnector's capacity booked through queries, amounting to some 4 billion cubic meters, already exceeds the projected real capacity it is designed to have after completion. Bulgaria and Greece are currently finalizing the first stage of building the Interconnector Greece-Bulgaria (IGB), which authorities in Sofia hope will provide access to the future Southern Gas Corridor and reduce dependence on Russian supplies. Due to continuing interest, the deadline for indicative queries has been extended to April 08, and options are being explored by the two countries to boost the planned capacity to 5 billion cubic meters of gas a year, up from 3 billion cubic meters envisaged in the initial agreement. By mid-2016, the second stage of the project, which includes the submission of binding offers, should also be completed. IGB is "related to the security of supplies, a project that is extremely important in terms of market development", Petkova has also said. The IGB project is being carried out by the Bulgaria-registered company ICGB, a joint venture of the Bulgarian Energy Holding and a IGI Poseidon, a company of Italian gas supplier Edison and Greece's DEPA. Construction is to begin this October.
Source: econ.bg (04.04.2016)

Bulgaria’s Overgas to Sue Gazprom over Gas Deliveries Halt Bulgarian gas supplier Overgas intends to sue its shareholder - Russia’s Gazprom, because the Russian company stopped supplying its Bulgarian partner with natural gas. Meanwhile Gazprom is about to sell its share to Overgaz for an undisclosed price, deputy CEO of Overgas Networks, said. “We have a valid contract with Gazprom at least until 2019, with the possibility to extend it beyond that date”, Svetoslav Ivanov said. Ivanov stated that, three months after the incident, Overgas is still forced to buy natural gas from the public supplier Bulgargaz. In his words the gas sector has returned to pre-democratic times when the state-owned supplier was ruling the market, implying that Bulgargaz has been taking advantage of the situation and the state regulations. Overgas has seized the European Commission regarding state policies which breach competition rules giving advantage to state-owned energy companies, such as Bulgargaz.
Source: Dnevnik (08.04.2016)

Expected 100.000 m3 output: Noble Globetrotter II starts Bulgaria Black Sea gas drills The Noble Globetrotter II, which will carry out the first exploratory drilling for natural gas in the "Khan Asparuh" block in the Bulgarian Black Sea, will be officially presented today in Burgas by Total's Bulgarian Xavier Fozhras. Because of its vast dimensions of the ship, it has passed through the Bosporus in disassembled parts and was reassembled at the pier in Burgas. According to preliminary estimates, there are reserves of over 100 bln. cubic meters of natural gas in the Khan Asparuh field. "The initial geological studies concerning the Khan Asparuh block along the block Silistar are very optimistic. When make this first drilling, we will see what the results will be.The results from the drilling should be ready within four months depending on weather conditions, " Energy Minister Temenuzhka Petkova informed. The Bulgarian government hopes that reserves will be sufficient to substantially reduce the need for imports of natural gas.
Source: Standart (20.04.2016)

Bulgarian Energy Holding swings to BGN 29.5 mln cons net profit in 2015 Bulgarian Energy Holding (BEH), which pools all state-owned energy assets, turned to a consolidated net profit of BGN 29.5 million in 2015 from a loss of BGN 277.4 million in 2014. Among BEH's nine subsidiaries, gas transmission operator Bulgartransgaz recorded the highest profit of BGN 93.2 million, up 23.1% from 2014, followed by nuclear power plant (NPP) Kozloduy with BGN 82.4 million, up 6.1%. The slight improvement in Kozloduy's results came on the back of an increase of its output for the non-regulated market, energy minister Temenuzhka Petkova told a news conference. The net profit of the Electricity System Operator (ESO) more than tripled to a record high of BGN 63.1 million in 2015 from 19.6 million levs in 2014 mainly due to a 10% cut in administrative expenses, which contributed BGN 42 million to the company's profit. Monopoly gas supplier Bulgargaz managed to quadruple its profit to BGN 20.4 million in 2015. Troubled NEK, which acts as a link between electricity producers and distributors, slashed its net loss by 66.5% to BGN 196.7 million in 2015. It recorded a profit of BGN 39 million for the first quarter of 2016. On the negative side, the net loss of thermal power plant Maritsa Iztok 2 more than doubled to BGN 72 million in 2015 from BGN 35 million in 2014, as costs rose faster than revenues. The profit of coal miner Mini Maritsa Iztok dropped 39.4% to 2.6 million levs despite a record high output of 32 million tonnes of coal in 2015. The Independent Bulgarian Energy Exchange (IBEX), which launched operations in January 2016, accumulated a loss of BGN 214,000 in 2015, but recovered to a net profit of BGN 600,000 in the first quarter of 2016.
Source: Monitor (26.04.2016)

Natural Gas Price Can Decrease by 10% in July The price of natural gas in the third quarter of 2016 can decrease by 9.97 per cent to BGN 281.08 per 1,000 cubic metres, exclusive of excise duty and VAT, distributor Bulgargaz predicted on Tuesday. The decrease is due to an expected fall in supply prices in the third quarter and a falling exchange rate of the Bulgarian lev to the US dollar. The forecast is tentative. The final price proposal of Bulgargaz will be submitted to the Energy and Water Regulatory Commission on June 10.
Source: 24 chasa (11.05.2016)

Bulgaria's Bulgargaz proposes 10% cut in Q3 wholesale gas price Bulgarian gas monopoly Bulgargaz said on Tuesday it will propose a 9.97% reduction of the wholesale price at which it sells natural gas to its clients as of July 1. The tariff will hence go down by 31.13 levs to 281.08 levs ($177.1/163.27 euro) per 1,000 cu m, VAT and excises excluded, reflecting projected lower prices of gas supplies and the depreciation of the Bulgarian lev against the U.S. dollar, the company said in a notice on its website. According to the local regulations, Bulgargaz will submit its final pricing proposal to the energy watchdog on June 10. The regulator has to decide on the wholesale tariff, which is adjusted each quarter, by the end of June. Since the beginning of 2015, Bulgaria's gas prices have dropped by 48%. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania. Bulgargaz is a subsidiary of Bulgarian Energy Holding (BEH), which pools all state energy assets.
Source: Trud (11.05.2016)

Corporate commercial bank’s trustees refused claim of Bulgargas for more than BGN 12 million Trustees of Corporate Commercial Bank (CCB) have not adopted claim of Bulgargas to the amount of BGN 12 million. Although it is challenged in court, the claim for more than BGN 3.7 billion is accepted by Bulgarian Deposit Insurance Fund. Trustees divided lists of debts into several types - adopted without being challenged in court; adopted that are challenged in court, and missed that are also challenged in court. In the group with adopted without objection claim its bankrupt Kremikovtzi for BGN nearly 209 million. More than BGN 28 million is a claim adopted by Sofia airport. The airport also has missed a claim that is disputed in court. It is worth nearly BGN 2 million. Among other claims that are not accepted is money of the Serbian privatization Agency, namely nearly BGN 13 million. The biggest missed claim that is challenged in court is of BTC for more than BGN 52 million. Receivables of Domerit which are for more than BGN 18 million have been adopted and, as well as that of NURTS for which two amounts that are acquired by cession are describe.
Source: National radio (16.05.2016)

The biggest Bulgarian companies in 2015 The year in which growth is back. This is the picture drawn by this year's ranking of the largest companies in Bulgaria "Capital 100". They show that in 2015 the revenues of the giants in the business have risen after the reported decline in 2014, and the financial result, which in aggregate terms a year ago was negative, now noticeably improved. Achieved in 2015 increase in the revenues of the largest Bulgarian companies is 3.3%. The figure almost matches the growth of the economy last year by 3%. Top 10 in alphabetical order in 2015 are Aurubis Bulgaria, Bulgargaz, Express Logistics and Distribution, Kaufland Bulgaria, Lukoil Bulgaria, Lukoil Neftochim Bourgas, National Electric Company, OMV Bulgaria, Saksa, CEZ Electro Bulgaria.
Source: Capital (27.06.2016)

Bulgarian Energy Regulator Endorses Proposed 9.97% Cut in Gas Price for Q3 2016 Bulgaria’s energy regulator KEVR has endorsed a proposal by gas utility Bulgargaz to cut gas price for end suppliers by 9.97% for the third quarter. The new price would be BGN 281.08 (EUR 143.71) per 1,000 cubic meters, free of VAT and excise, KEVR said in a statement on Tuesday. The cut in the price is equivalent to BGN 31.13 per 1,000 cubic meters. End suppliers will sell gas to end consumers connected to the low-pressure network of transmission operator Bulgartransgaz for BGN 288.80 per 1,000 cubic meters, free of VAT and excise, in the third quarter. Bulgargaz had proposed to cut gas price by 9.97% for the third quarter of 2016 citing an expecred drop in the price of gas supplies. Natural gas price in Bulgaria has been cut by 48% since the start of the 2016.
Source: investor.bg (29.06.2016)

Bulgaria may have to sell Bulgatransgaz or face up to 300 mln euro EU fines Bulgaria's prime minister Boyko Borissov said on Wednesday that the country may have to sell its gas transmission system operator Bulgatransgaz, or else face an EU infringement procedure that could cost it up to 300 million euro ($333 million). “[...] when Commissioner [for competition] Margrethe Vestager comes and says, 'You should sell Bulgatransgaz,' for us this would be a heavy political blow [...] Otherwise, an up to 300 million euro infringement procedure against Bulgaria may follow," Borissov told a news briefing in Brussels. An audio file of his words was circulated by the government's press office. Approached for a comment, a European Commission spokesman said it has not yet reached a final decision on the matter. "The Commission's antitrust investigation is ongoing. In March 2015, the Commission sent a statement of objections to Bulgarian Energy Holding, informing it of the Commission's preliminary view that BEH may have breached EU antitrust rules by hindering competitors’ access to key gas infrastructures in Bulgaria," the spokesman said, adding that BEH has sent a written response to the Commission's objections. "The Commission has not yet reached a final decision. As is common practice in antitrust investigations, Commissioner Vestager has met with Bulgarian counterparts to discuss the state of play of the investigation," the spokesperson added. In March 2015, the European Commission said it had sent a statement of objections to state-owned BEH and two of its units, informing them that they may have breached EU antitrust rules. At this stage, the Commission had concerns that BEH, Bulgartransgaz and gas monopoly Bulgargaz had refused to give competitors access to the gas transmission network and the gas storage facility, as well as reserved capacity they do not need on the gas import pipeline. "If the concerns are justified this behaviour would have reduced and continues to reduce competition in gas supply markets in Bulgaria," the Commission noted at the time.
Source: Capital (30.06.2016)

Bulgaria is among EU leaders in increasing natural gas consumption. In 2015 natural gas consumption in the EU grew by 4.3 per cent from 2014. In the 18 eurozone countries the increase was 6.1 per cent. In Bulgaria consumption rose by 10.4 per cent, which places Bulgaria fourth in the EU with an increase double the EU average. In 2016 natural gas consumption has grown even more. In the first five months alone the consumption grew by 11 per cent from the like period of 2015 due to the lower price of gas. In the second quarter of 2016 its price was s 54 per cent lower from January 2015. From July natural gas further decrease by 9.97 per cent.
Source: Sega (14.07.2016)

Metachim Impex paid slightly over BGN 12 million for Chimko's assets Registered before less than two months, Metachim impex paid slightly over BGN 12 million for assets of the Vratsa-based fertilizer factory Chimko, which was being sold by the trustee of the bankrupt enterprise. The company has already been listed as owner of land and buildings in the Registry agency. The sum most probably includes movable assets as well, as the sole offer was handed out for slightly less than the initial tender price of BGN 11.7 million. Negotiations are being led for re-sale of some of the equipment. Interest was demonstrated for the two lines, including that for urea. So far Metachim Impex has not formally declared its plans. Metachim Impex has acquired all manufacturing, administrative and other buildings on the site of Chimko as well as 630 acres of land in the city and another 75 acres of a former quarry used as a depot for technological waste. The price that is listed in the registry agency is BGN 12.048 million. Revenues will be distributed among the creditors of the bankrupt company, including the largest ones such are Bulgargaz, National Electric Company and the National Revenue Agency, but their claims are not secured.
Source: Capital (27.07.2016)

Mines Maritsa Iztok waits for BGN 110 million BGN 110.4 million is the sum that Mines Maritsa Iztok expects to get by the four major companies in the energy complex. The biggest claims of the mines are for produced and sold lignite coals from the state TPP Maritsa Iztok 2- BGN 69.168 million as BGN 24.154 million is what private briquette factory Brickell has to pay for coal. After receiving claims from NEC, the two American thermal power plants in the energy complex - ContourGlobal MI-3 and AES MI-1 melted their obligations to the company respectively to BGN 11.46 million and BGN 5.62 million. Besides its huge debts to the mines, TPP Maritsa Iztok 2 has a debt of BGN 84 million to other group companies of BEH. Their total amount is assessed to BGN204.64 million. The ultimate loss before tax of the TPP is BGN 51 million, which is more by BGN 18.3 million compared to the same period of 2015. Due to falling prices of electricity and natural gas in the first half of the year and revenues of NPP Kozloduy dramatically decreased as well as those of Bulgargaz by BGN 31 mln and BGN 235.22 mln respectively. Bulgargaz reported profit of BGN 35.424 million for the first half of the year.
Source: Standart (02.08.2016)

"Bulgargaz" requested an increase of the gas with 3.4% in September Bulgargaz predicted à slight rise in the price of natural gas by 3.4 percent, by early September. The final proposal of change in price will be submitted for approval to the Commission for Energy and Water Regulation in September. If Bulgargaz’ proposal maintains, natural gas price will be BGN 290.63 per 1,000 cu. meters in the fourth quarter. The upcoming price increase is due to the expected higher delivery prices of natural gas in the last three months of 2016. This is due mainly to the rise in oil prices in early June, when USD 50 passed for Brent. After Brexit, however, it went down again, as is currently around USD 42-43 per barrel.
Source: Capital (11.08.2016)

The energy system operator with a profit of BGN 42 million for the first annual half The Electricity System Operator, which owns the entire electrical grid in the country continued to report good results. By mid-year the state-owned company earned BGN 41.8 million, which is one of the best performances in Bulgarian Energy Holding’s group of companies. Only Bulgargaz and Bulgartransgas report better profits for the first half - respectively BGN 48.9 and 43.5 million. At the same time, revenue from sales marked a marginal increase of BGN 5.2 million, reaching BGN 287.7 million. In addition the company's revenues for acquisition of tangible fixed assets also increased by BGN 3.380 million from the Fund Kozloduy. The energy price which ESO collects for access and transmission, has fallen by 13.15%. This trend began in the middle of last year, which led to a decrease in electricity prices in Europe by 15-20%.
Source: Capital (26.08.2016)

For the second year 17 Bulgarian companies are among the largest 500 in CEE For the second year 17 Bulgarian companies were included in the ranking of the largest companies in Central and Eastern Europe in 2015. The total turnover of Bulgarian companies in the ranking reached EUR 17.765 bln, which recorded a slight decline compared to last year, while net profit amounted to EUR 148 mln, according to the ranking of international credit insurer Coface - Coface CEE Top 500, which is published for the eighth consecutive year. Among the Bulgarian companies, first in the ranking is Bulgarian Energy Holding, which occupies 21st position (26th place last year) and surpassed Lukoil Neftochim, which was the leader last year. The others in the top 10 of the largest Bulgarian companies in the ranking are Aurubis Bulgaria, NEK, Lukoil Bulgaria, Kaufland Bulgaria, CEZ Electro Bulgaria, Bulgargaz, OMV Bulgaria and Advance Properties. Among the 17 companies, however, there are 3 new - Express Logistic And Distribution (360th place), Daphna Group (392nd) and Litex (462nd) and dropouts are Metro Cash & Carry Bulgaria, Mobiltel and Petrol.
Source: investor.bg (01.09.2016)

Ten of the 500 largest companies in Central and Eastern Europe are Bulgarian Ten of the 500 largest companies in Central and Eastern Europe are Bulgarian. This shows the ranking of the international consulting company Delo³tte published for a 10th commemorative year in a row. Bulgarian companies are in the sectors of fuel, energy, extraction and consumer goods. First in the ranking is the refinery Lukoil Neftochim Burgas, which occupies 51th place. A year earlier, however, it was 36th, but because of the serious decline in revenue of over 22%, the company is out of the top 50. The second place is occupied by the copper plant in Pirdop, whose owner is Aurub³s and is 65th in the overall ranking. Third again is Lukoil Bulgaria, and fourth is the state-owned NEK. Fifth and sixth place are respectively occupied by Chimimport and CEZ Electro Bulgaria, seventh and eighth – by Bulgargaz and OMV. The rest of the Bulgarian participants in the ranking are Express Logistics and Distribution and Saksa, which are respectively 464th and 490th in the overall ranking.
Source: money.bg (09.09.2016)

Bulgargaz wants increase of natural gas by just over 3% in October Bulgargaz wants higher price of natural gas for the fourth quarter. In a statement the company said that in accordance with the requirements and conditions of Ordinance ¹ 2/2013 on the regulation of gas prices, Bulgargaz EAD, a subsidiary of Bulgarian Energy Holding AD offers KEVR to establish price for natural gas for the fourth quarter of 2016 to the amount of to BGN 290.28 /hm3 without excise duty and VAT, which is an increase compared to the third quarter of BGN 9.20 /hm3 or 3.27%. KEVR is yet to take its decision. Two days ago the chairman of the commission Ivan Ivanov commented that even if there is a suggestion for a slight appreciation of natural gas from October 1 this year, is not expected to change in the prices of heating and hot water. KEVR has the right not to announce a decision on new prices for thermal and highly efficient electric energy, as by law it is obligatory only in case of significant change in the pricing element, in this case natural gas, which is not the case.
Source: econ.bg (12.09.2016)

Alternative gas transactions from Greece already 100 In less than three months, interest in virtual gas transactions increased significantly, but trading volumes are still too negligible and are more of an attempt by the traders and consumers to test the new possibility for alternative supplies. According to Bulgartransgas, it comes to around 100 thousand cubic meters. For comparison, the total consumption in the country is around 150-160 mln cubic meters per month in the summer. However the number of transactions significantly increased from 1 in early July to 100. So far the biggest consumers rather give it a test as Bulgarian price is lower than the Greek. Virtual gas transactions became possible in late June, when the Bulgarian and Greek gas operators - Bulgatransgaz and DESFA, signed the agreement. For now, they are in a test period, but from 1 October (or no later than early November) deals should become a long-term option.
Source: Capital (15.09.2016)

Bulgargaz Contests Bulgarian Energy Regulator’s Planned Lower Gas Price Hike Bulgarian state-owned gas incumbent Bulgargaz has contested the plans of the Energy and Water Regulatory Commission (EWRC) to approve a lower than requested price hike of natural gas in the fourth quarter of 2016. The EWRC said it plans to approve a 1.97% price increase from BGN 281.08/1000 cub. m to BGN286.60/1000 cub. m (no VAT and excise duty included). Bulgargaz, however, has requested a 3.27% increase to BGN 290.28/1000 cub. m. (BGN 1= EUR 0.51) During a discussion at the regulator’s headquarters, Ivan Ivanov, head of the License Operations and Corporate Relations said that if the lower-than-requested price hike is approved, Bulgargaz will be left with no return on sales and would not be able to pay for operational costs. Bulgargaz supplies natural gas to large-scale consumers connected to the gas transport grid and to gas distribution companies. Bulgargaz said it plans to supply a total of 945,402,000 cub. m of natural gas in Q4, 883,4 million cub. m of which would be supplied by Russia’s Gazprom. The remaining 62 million cub. m of gas would be pumped from Bulgaria’s Chiren underground storage. The price fo natural gas at the entry of the national gas transport grid is BGN 264.70/1000 cub. m. The energy watchdog is expected to take a final decision on September 30.
Source: Trud (28.09.2016)

Four new companies file binding offers to use Bulgaria-Greece gas link Four companies, which did not participate in the non-binding expression of interest (EOI), have submitted binding offers to book capacity in the gas interconnector Greece-Bulgaria (IGB), the energy ministry in Sofia said on Wednesday. Bulgarian energy minister Temenuzhka Petkova expressed confidence that the volumes of natural gas booked in the second stage of the market test will replicate those filed in the non-binding expression of interest, the ministry said in a statement. The ministry did not disclose the names of the four new companies. During the first bidding round, which closed on April 8, ICGB received non-binding offers from nine companies, including Bulgargaz, Edison, Greece's DEPA and Gastrade, Azerbajan's Socar and US-based Noble. The nine interested companies requested a total aggregate capacity of 4.3 bcm per year for gas transportation services in firm forward mode from Greece to Bulgaria and approximately 1 bcm per year for gas transportation services in firm reverse mode from Bulgaria to Greece. The deadline for cubmitting binding offers in the second phase of the market test is October 31. The 182 km long IGB pipeline will link the northeastern Greek city of Komotini with Stara Zagora in central Bulgaria. It is estimated to cost 220 million euro ($245.5 million). The pipeline will carry 3 billion cu m of natural gas annually in its initial stage and will have a maximum capacity of 5 billion cu m per year. It will eventually be connected to the Trans Adriatic Pipeline (TAP), which will carry Azeri gas to Europe through Greece. Bulgaria and Greece signed a final investment decision on the construction of the gas link in December last year.
Source: Monitor (06.10.2016)

Bulgaria could take up to 25 pct stake in Greek LNG project Bulgaria could take up to a 25 percent stake in a project to build a liquefied natural gas (LNG) terminal off the coast of northern Greece, the Bulgarian energy minister said. The EUR 380 million floating facility will be linked to a gas pipeline due to be built by Greece and Bulgaria and would help Bulgaria reduce its reliance on Russian gas. It will also aim to supply gas to southeastern Europe. Bulgaria’s state-run energy holding company BEH has set up a taskforce with Greek natural gas company Gastrade, which plans to build the terminal, to consider joint participation. The team is due to come up with a proposal by the end of this month and Energy Minister Temenuzhka Petkova said Sofia would then consider its options. Gastrade, part of Greek energy group Copelouzos, plans to build the terminal off the coast near the northern Greek city of Alexandroupolis. “The end of October is the deadline, when the taskforce should come up with a proposal which should give us clarity about the possibilities for Bulgaria’s participation,” Petkova said at a press briefing with her Greek counterpart Panos Skourletis. “We have declared readiness to participate as an investor, as a shareholder with up to a 25 percent stake,” she said. The facility, with an estimated annual capacity of 6.1 billion cubic metres (bcm), will aim to supply gas to southeastern Europe via another natural gas pipeline scheme that will cross through Greece, the Interconnector Greece-Bulgaria (IGB). Bulgaria and Greece signed the final investment agreement for the IGB link last year and binding bids for the pipeline are expected by the end of this month. Gastrade would not necessarily hold a majority stake in the project, but would like to involve the main market players in Greece and Bulgaria, Konstantinos Sifnaios, a business development manager at Gasgrade, said. Cheniere Energy, a U.S-based liquefied natural gas (LNG) exporter, has also expressed interest in becoming a shareholder, Sifnaios said. A final decision on the investment structure of the Alexandroupolis terminal is expected by the middle of 2017, with it due to become operational in the second half of 2019, he said. /publics.bg
Source: Other (07.10.2016)

Overgas will not buy from Bulgargaz in 2017 Overgas Networks declared its wish to terminate the contract on gas deliveries with Bulgargaz from January 1, 2017. All clients of Bulgargaz applied their annual programs for 2017, with the exception of Overgas Networks, said Executive Director of Bulgargaz Nikolay Pavlov. He stressed that Bulgargaz still supplies fuel to Overgas Networks. For his part, the Deputy Executive Director of Overgas Networks - Svetoslav Ivanov, said that regardless of the letter terminating the contract with Bulgargaz, it will not affect the gas supply for customers of Overgas. “For a long time we tried to renegotiate the terms of the contract with Bulgargaz. We're not sending just a notification letter to give up. There are concrete proposals for negotiation. Our customers will not be left without gas,” he said. Svetoslav Ivanov added that the division of Overgas and Gazprom has not yet been completed.
Source: econ.bg (31.10.2016)

Bulgaria’s Bulgargaz plans 10.2% hike in wholesale gas price in Q1 2017 Bulgarian gas monopoly Bulgargaz has said it plans to propose a 10.23% increase of the wholesale price of natural gas for the first quarter of 2017 due to expected rise in international gas prices. The price will be increased by 29.31 levs per 1,000 cubic metres to reach 315.91 levs ($176.1/161.6 euro) under the proposal, Bulgargaz said in a statement on Thursday. The price is free of VAT and excise tax. The company will submit its proposal to the Bulgarian energy regulator for approval on December 9. Bulgarian energy regulations require Bulgargaz to set the gas price quarterly, taking into account global oil prices and the lev/dollar exchange rate. The Energy and Water Regulatory Commission (EWRC) has the final say on the proposed change in the wholesale price at which state-owned Bulgargaz sells natural gas to end-suppliers and customers directly connected to its transmission network. The gas price fell by 31.16% in Bulgaria in 2015. It had been falling steadily since the fourth quarter of 2014, when it stood at 603.44 levs per 1,000 cubic metres. The decline continued in 2016 and the price reached 281.08 levs per 1,000 cubic metres in the third quarter. In September, the energy regulator approved a 1.97% increase to 286.60 levs for the fourth quarter of 2016. Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: econ.bg (14.11.2016)

Bulgargaz turns a profit of BGN 36 million for the nine months State gas trader Bulgargaz reported net profit of BGN 36.12 million in the first nine months of the year with a loss of BGN 22.6 million for the same period of 2015. This shows the financial statements of the company. For the same period last year, the difference was 6.66%. The operating profit for the period of BGN 51.2 million is even more impressive against the operating loss last year of BGN 22.038 million. The trend to reduce the price of gas leads to a drastic reduction in revenues of Bulgargaz from operating activities by 30.8% to BGN 732.95 million compared to last year. For the first nine months the decrease in the quantity purchased is 5.4%. Bulgargaz’ main debtor remains Toplofikacia Sofia for consumed, but unpaid gas. For the first nine months their obligations decreased to BGN 97.5 million compared to BGN 123 million for the previous quarter. This is mainly due to the contract cession made in March this year, which ceded takings from Toplofikacia Sofia to NEC amounting to BGN 51 million.
Source: Capital (23.11.2016)

The Energy and Water Regulatory Commission doesn’t know how gas players will pay for Bulgargaz’ unforeseen expenses The distribution company Overgas still has not signed a contract with Bulgargaz for the supply of gas for the next year. It was recently established that Overgas refused to sign a contract with Bulgargaz for 2017 in the previsional terms. This resulted in an open letter from the Bulgarian Federation of Industrial Energy Consumers addressed to state institutions. It states that Overgas’ decision can lead to additional unforeseen costs for the state-owned company. The reason is that Bulgargaz will have to buy unforeseen transmission capacity through the Romanian territory for 2017 at short-term auctions, where the price is several times higher than last year’s. The company, however, can not calculate how much extra it will cost it. The Energy and Water Regulatory Commission will decide on the final amendment of the gas pricing regulation on the December 27th.
Source: Dnevnik (06.12.2016)

Bulgargaz asked KEVR to approve a 13.53 % more expensive gas from 1 January Bulgargaz has proposed to the Energy and Water Regulatory Commission to confirm the price of natural gas for the first quarter of 2017 amounting to BGN 302.99 per 1000 cu. m without transmission price, excise duty and VAT, or a rise of 13.53 %. The requested new price is BGN 36.12 per 1000 cu. m higher. For years, Bulgaria is among the countries that buy natural gas from Russia at the highest price in Europe. Gazprom is the country's only source of supply for now. Meanwhile, it became clear that a norm for access to contracts for the supply of gas to the European Union is being discussed by the European Commission. This is planned only when the external provider partnerships and its companies account for over 40% of the gas consumption in an individual EU country.
Source: Monitor (12.12.2016)

KEVR will not comply with Bulgargaz’ request for the price of gas The Commission for Energy and Water Regulation will not comply with Bulgargaz’ request, regarding the price of natural gas from January 1, 2017. The gas company requested a rise in price of 13.53% to BGN 302.99 per 1,000 cu. M. In this price the cost of excise duties, VAT and transmission of gas are not included. A change in the methodology for setting prices for access and transmission of natural gas is expected and therefore the CEWR now requires the price request to exclude the tax for transmission of natural gas. Bulgargaz motivated its request for a higher price based on the more expensive alternative fuels in recent months. Bulgargaz’ equity stands at EUR 256 million, long-term liabilities reached BGN 27.3 million, and short-term – BGN 54.4 million. The price of natural gas for the new quarter will be announced on 30 December and will enter into force from January 1, 2017.?
Source: investor.bg (20.12.2016)