The small companies lose the most in the gas crisis The losses for Bulgarian economy are about BGN 8.4 million a day as a result of the cut gas supplies, data of 153 companies with limited gas delivery show quoted by minister of economy and energy Petar Dimitrov. The figures do not include the losses of another 72 companies for which gas supplies were completely cut off. The suspended gas deliveries cannot guarantee flawless production process.
Source: Pari (09.01.2009)

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

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

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

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

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

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

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

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

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

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

Bulgaria and Romania will start a joint pre-investment research for the construction of an inter-system link for the transfer of natural gas in the section Ruse-Giurgiu. The two sides will analyze the opportunity for using partial financing from the European funds for the construction of the link, the Bulgarian Energy Holding announced. This was discussed at a meeting between the managements of Bulgartransgaz EAD, subsidiary of Bulgarian Energy Holding EAD and Transgaz, Romania, which took place in Sofia on 18-19 February.
Source: news.bg (20.02.2009)

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

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

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

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

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

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

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

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

Czech oil and gas company Moravske Naftove Doly (MND) on Wednesday sealed an agreement to overhaul the underground gas storage facility in the northwestern Bulgarian village of Chiren, company spokesman Dan Plovajko told Czech news outfit CTK. MND Group, the largest oil and gas extracting company in the Czech Republic, operates 21 fields and produces around 6,000 barrels of oil a day. Plovajko said the Czech firm outbid German, Russian and French competitors. MND will develop a technical project, study the aboveground and underground area of the facility and design the extension, Bulgartransgaz executive director Angel Semerdjiev told Dnevnik. The project with a price tag of EUR 800,000 was awarded to the Czech company as it put forward a better offer than the Bulgarian-Russian tie-up and the German firm which showed up for the competition, he added. The expansion of Bulgaria’s gas storage facility in Chiren is estimated at EUR 250 million, Bulgaria hoped to bankroll the project with European funding but its application to tap the EU’s economic recovery money was turned down.
Source: Dnevnik (22.05.2009)

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

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

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

The deal for purchase of 77 luxurious automobiles made by the Bulgarian Energy Holding (BEH) is illegal, said energy minister Traycho Traykov. The deal is worth BGN 5 mln. A week ago it appeared that the energy megaholding has signed the deal for the vehicles without a public procurement procedure. The Public Procurement Agency said that it is not quite clear whether one should take place. BEH commented that no public procurement has been announced but the deal has been signed according to the regulations of the holding. They added that the autos are mainly for the needs of BEH’s subsidiary Bulgartransgas. Traykov said that this is exactly why a public procurement procedure should have been appointed.
Source: Novinar (09.09.2009)

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

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

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

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

Russia Cannot Take Hold of Bulgaria's Gas Transit System Valentin Kanev, Director of the Balkan and Black Sea Oil&Gas Association Last week, Bulgaria Economy and Energy Minister Traycho Traykov paid a visit to Moscow and discussed with his Russian colleagues important joint energy projects. The second round of the negotiations is scheduled this week in Sofia. The Standart asked Mr. Valentin Kanev, Chairman of the Bulgarian and Black Sea Oil&Gas Association, to comment on the latest developments of the Bulgarian-Russian natural gas projects. Mr. Kanev, how would you interpret the statements of Russia that the technical parameters of the South Stream will be altered towards expansion of its capacity? - Initially, the throughput capacity of South Stream was estimated at 31 billion cubic meters of natural gas a year. Later the information was released that the pipeline's capacity would be increased to 63 million cubic meters of gas a year. During their meeting with Italian PM Silvio Berlusconi last week, Russia's President Dmitry Medvedev and PM Vladimir Putin said that the pipeline's capacity would increase twofold, but did not mention particular figures. So it did not become clear whether it will increase twice from 31 or 63 billion cubic meters. Still, the throughput capacity of South Stream will be quite substantial and Moscow will probably propose the transit of natural gas through Bulgaria to Turkey, Greece and Macedonia (about 17 billion cubic meters a year) to be replaced with gas from South Stream. The rest of the supplies will be transported to Europe, Italy, Hungary, etc. So, Russia wants to replace the quantities of Russian gas transported through Ukraine to Europe with natural gas from South Stream. The additional 55 billion cubic metres that will be transported via "Nord Stream" pipeline will almost put Ukraine out of the way of Russian gas. But it is not clear if minister Traycho Traykov discussed the issue during his visit to Moscow. - Was Bulgaria pressured regarding the property of the transit pipelines of "South Stream"? - "Gazprom" insists on ownership on the transit gas pipelines. I suppose Bulgaria has answered that it cannot concede the existing pipe network. In the new infrastructure of "South Stream" the property of the pipelines might be shared, but this has already been discussed. The demand of "Gazprom" concerning the transit gas pipes contradicts EU legislation. The third energy package is the final decision of the European Parliament and the European Commission on energy policy. According to the directive the companies, which extract natural gas can't have control over the transit pipes. Because of that if "South Stream" project is implemented the control over the gas transport system should be exercised by Bulgaria, by its national operator. This is a very important benchmark in EU energy policy that should be taken into consideration.
Source: Standart (26.10.2009)

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

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

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

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

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

Natural gas transmission operator Bulgartransgaz will be the first state-owned energy company to be listed on the Bulgarian Stock Exchange, minister of economy and energy Traycho Traykov said at a round table on Bulgaria's energy strategy until 2020. Between 10 and 15% of the capital of Bulgarian Energy Holding's companies will be initially offered for trade. Bulgartransgaz and Electricity System Operator, which operates the electricity transmission network, will be separated from the holding into spinoffs supervised by the minister. That will happen by the end of 2011. Bulgaria's new energy strategy until 2020 will be drafted by the government by early next year, minister Traykov explained. The document will be aimed at encouraging energy efficiency and increasing the share of renewable energy. One of Bulgaria's goals is overshooting its EU commitments for 16% renewable energy and saving up to EUR 1 billion a year from energy efficiency by 2020. Enterprises and household users will buy cheaper electricity if they apply efficiency measures, the chairman of the State Energy and Water Regulatory Commission, Angel Semerdzhiev, pointed out. That can become possible in a year or two. Businesses, however, were critical of the strategy. According to the chairman of the Bulgarian Industrial Association, Bozhidar Danev, the cross subsidising of consumers and heating utilities by companies should be terminated. A more transparent structure for determining energy tariffs should also be put in place, but that is not envisaged in the strategy. The licences of gas distribution utilities that do not make investments in network development should be revoked, Danev was adamant. The analyses on which the strategy is based are old and do not reflect the actual trends in the sector, the chairman of the association of green energy producers, Velizar Kiryakov, underscored.
Source: Pari (24.11.2009)