Up to one-third increase in energy exports expected until 2020 In 2020, Bulgaria is expected to export a total of 10.4 terawatt-hours (TWh) electricity, envisaged the newly drafted Energy Strategy of Bulgaria, presented yesterday by the Minister of Economy, Energy and Tourism, Traicho Traikov. According to the forecasts, in 10 years, our country will generate 49.7 TWh electricity. By 2015, new power capacities of 1,060 MW are planned to be launched, while old power facilities of 2,175 MW are to be decommissioned. In Minister Traikov's words, by the end of the year, an Energy Exchange will be set up, which will create real competition on the market and will facilitate the easier determination of electricity prices. Currently, the Ministry of Economy, Energy and Tourism (MEET), the Electricity System Operator (ESO), as well as the Bulgarian and Norwegian energy regulators are collaborating on the establishment of the new structure. The Energy Exchange will not have good liquidity because of the lack of power generation plants that can operate on the free market, stated yesterday Ivanka Dilovska, Chairwoman of the Energy Management Institute. According to Traikov, the strategy will be considered by the Bulgarian government within a few weeks. Within two months, ESO and Bulgartransgaz are expected be separated from the BEH (Bulgarian Energy Holding) structure, said also the Minister. Pursuant to EU directives, ESO must become the owner of the transmission network in Bulgaria currently being lodged as assets against the loans borrowed by NEK (National Electricity Company). Soon negotiations will be initiated with the creditor banks of NEK on the transfer of assets, explained Traikov. In his words, the Government envisaged establishing mechanisms for aiding socially disadvataged people because of the expected price increase. If the objectives of the Energy Strategy are implemented, the price of domestic electricity will rise by 25% over the next 10 years. If they remain documented on paper only, without practical realisation, electricity prices will double, stated Dilovska.
Source: Class (20.01.2011)

Bulgaria's state-run gas monopoly Bulgargaz has increased the price of natural gas for end-suppliers and consumers by 4.47% as of April 1, the company said on Thursday. The company will sell gas at a price of BGN 532.14 per 1,000 cu m, value-added tax (VAT) excluded, although it had insisted on a price of BGN 543.05 because of a rise in alternative fuel costs on the international markets. Consumers using the low-pressure grid of Bulgartransgaz will pay the state gas company BGN 539.86 per 1,000 cu m of gas, excluding VAT.
Source: Dnevnik (01.04.2011)

While Bulgarian state-run gas monopoly Bulgargaz and the Government were intensively negotiating new gas delivery contracts with Gazprom, Overgaz, which is 50 per cent-owned by the Russian gas major, was holding parallel talks about cheaper natural gas purchases, a source at the gas supplier told Dnevnik. This will be Overgas' second attempt to enter a direct race with national gas supplier Bulgargaz since in 2010. Overgas said it wanted to sell about one billion cu m of gas on the Bulgarian market. The amount has been freed after one of Bulgaria's contracts with Overgas expired in late 2010. The second gas delivery agreement with the company runs through 2012. Overgas' attempt to sell gas directly to consumers, competing with the state-run firm, fell through in December 2010, when state gas transmission company Bulgartransgaz refused to make space for Overgas in its pipelines. Overgas' new strategy, in addition to negotiating a competitive price edge, focuses on selling to large industrial consumers along Bulgaria's borders, who would then sign the contracts with Bulgartransgaz for the gas deliveries.
Source: Dnevnik (16.05.2011)

Bulgaria to save millions of leva as a result of the introduction of a unified e-communication network for the state administration in 2013 Some of the top priorities set by the Bulgarian GERB (Citizens for European Development of Bulgaria) government until 2013 refer to the integration of e-communication networks of the administration, as a result of which Bulgaria is expected to save millions of leva from the state budget, stated Deputy Minister of Transport, Information Technology and Communications, Parvan Rusinov during the Telecommunications Infrastructure Roundtable. He also announced that next year a total of BGN 40 mln will be invested for the purpose of providing high-quality telecommunications services in rural areas. In practice, the National Electronic Communications network (ECN) and the NAMDA system (National ATM Network of the Public Administration, connecting overall 10 district towns), as well as a part of the network remaining after the privatisation of BTC (Bulgarian Telecommunications Company) and the networks of the Ministry of Finance, of the Bulgarian National Audit Office, of the Registry Agency, of the Geodesy, Cartography and Cadastre Agency must be merged with the communication networks of the State Agency for Information Technology and Communications (SAITC). It turned out that the different networks often overlap and reach the same government institutions via different routes. Currently, Bulgaria operates around 6 or 7 different incompatible or unlinked telecommunications networks, commented Peter Statev, Chairman of the Managing Board of the Bulgarian ICT Cluster. He stressed that there was no centralised management of telecommunications infrastructure and the lack of broadband access to many districts indicated the discrepancy in digital communications services provided to our society. Every government which has been in power over the last 15 years has set itself the objective of establishing the National Information and Communications System, emphasised Boyko Simitchiev, Vice-Chairman of the Managing Board of the Communication and Information Specialists Association (C&ISA). According to the estimates of the Association, over the last 18 years, around ˆ1 bn were spent for communications and information technologies in Bulgaria, while only 20-25% efficiency was reported as a result of the operation of the departmental e-communication systems.
Source: Class (18.05.2011)

Kiril Temelkov is replacing Ivan Drenovichki at the post of CEO of the Bulgartransgaz company, the Bulgarian Energy Holding, BEH, announced Thursday. Ivan Drenovichki, executive director of Bulgartransgaz, was removed from the position one year and a half after taking office. Temelkov, 37, has graduated from the University of National and World Economy in Sofia with a major in Economy and Management of Trade. He has extensive experience in the energy sector and has worked for Bulgargaz and Bulgartransgaz, where he has been the Head of the Trade Department from 2000 to 2008. Since May, 2010, Temelkov is the Bulgarian representative at the Nabucco gas pipeline and manager of Nabucco Gaz Pipeline Bulgaria. State-owned Bulgartransgaz is a natural gas transmission and storage system operator and a subsidiary of BEH. Bulgartransgaz is part of a gas grid interconnection project with Romania, which, according to the Minister of Economy, Energy and Tourism, Traicho Traikov, is to be completed by mid-2012. The gas transmission operator was involved in an argument with private natural gas supplier Overgas after denying the Bulgarian-Russian firm access to its pipeline grid.
Source: Darik Radio (24.06.2011)

Bulgartransgaz SPLTD seeks companies to construct three gas pipelines The state-owned gas transmission and storage system operator Bulgartransgaz SPLTD announced the bidding on three public procurement contracts in the course of five days worth a total of ˆ21.1 mln, posted the corporate website of the company. The tenders are for the selection of a designer and constructor of the gas pipelines to the towns of Montana, Kozloduy, Oriahovo, as well as for the construction of the gas link connecting Bulgaria and Romania between Ruse and Giurgiu. Bulgartransgaz planned to allocate ˆ12.5 mln for the construction of the pipeline to Kozloduy and Oryahovo, while the tube is expected to be completed within a year. The total value of the facility was estimated at nearly ˆ14.5 mln and part of the funds were loaned by the International Fund Kozloduy NPP, which is managed by the European Bank for Reconstruction and Development. The 80-km long pipeline should be extended to the town of Silistra. In fact, Bulgartransgaz has scheduled to spend about ˆ1.4 mln for its construction, judging by the participation guarantee amounting to ˆ70,000. The facility is expected to be ready a year after the launch of its construction. Funds were also earmarked for the construction of a gas pipeline under the International Fund Kozloduy NPP. The entire project costs ˆ14.5 mln. The third public procurement contract of Bulgartransgaz, concluded for the construction of a gas connection between Ruse and Giurgiu, includes the digging of a route under the Danube River. The facility is being constructed jointly with the Romanian Transgaz operator, while the public procurement contract costs ˆ7.2 mln. For its implementation, the European Reconstruction Fund allocated ˆ8.9 mln, while the cost of the entire project is ˆ23.8 mln, explained Bulgartransgaz SPLTD. The gas transmission and storage system operator has terminated the announced bidding on the public procurement contract for the rehabilitation and modernisation of the compressor stations ''Strandja", "Petrich", "Lozenets" and "Ihtiman", on which the gas supplies to Greece, Turkey and Macedonia depend.
Source: Class (12.09.2011)

European Commission opens probe into Bulgaria's gas market The European Commission (EC) initiated on September 28 2011 unannounced inspections at four Bulgaria-based gas companies, namely Bulgarian Energy Holding (BEH) and its two subsidiaries Bulgargas and Bulgartransgas, as well as private company Overgas, which is 50 per cent-owned by Russian gas major Gazprom, the companies said. In its statement, BEH also said that the probe was being conducted at dozens of companies in 10 countries from central and eastern Europe. Bulgaria's Commission for Protection of Competition (CPC) has also taken part in the check, the regulator said without providing further information. The Commission is examining whether gas companies comply with the rules for free competition in trade and distribution of natural gas, and whether they fulfill the commitments related to access of third countries to the gas network, which may have been violated unilaterally or through bilateral agreements. The inspections are expected to be completed in up to a week. The last check of Bulgaria's gas market took place in 2009. The probe was carried out by CPC, which found no breaches in free competition rules.
Source: Dnevnik (29.09.2011)

Bulgaria to Build Ports at Caspian Sea Bulgarian companies to participate in the construction of ports, shipyards and dockyards at Caspian Sea, including for oil-tankers and tankers for compressed natural gas - this issue was discussed by Bulgarian Minister of Economy, Energy and Tourism Traycho Traykov and Kazakhstan Minister of Energy and Mineral Resources Sauat Mynbayev during their meeting in Astana. Kazakhstan is considering Bulgaria as a serious partner in regard of the country's plans to increase the export of oil and gas by 2020, the president of Kazakhstan's National Oil-gas Company KazMunayGas Kairgeldy Kabyldin stated before Minister Traykov. He pointed out that this might be realized by transit via Caspian Sea, Black Sea and Bulgaria. For Bulgaria gas deliveries via Black Sea are important possibility to diversify the sources and the routes, Traycho Traykov said.
Source: Standart (05.10.2011)

Gas Grid Interconnections Are Financially Ensured The statement that Brussels will cancel the financing for Bulgaria for building gas grid connections with Greece and Romania after Bulgaria withdrew from Burgas-Alexandroupolis project is absolutely incorrect, director of Bulgartransgaz Kiril Temelkov said at the Transparent Energy forum. He added that Bulgaria is working in close touch with the European Commission and currently there is no unsolved problem in the relations or on any project. The company is working actively on all projects and in a few years all intersystem connections will be functioning, Mr. Temelkov was positive.
Source: Standart (09.12.2011)

Mariy Kosev, former Deputy Minister of Economy, Energy and Tourism, has been appointed Managing Director of Nabucco Bulgaria, Nabucco Gas Pipeline International GmbH said in a statement. Kosev will succeed Kiril Temelkov, who was appointed CEO of state-owned Bulgartransgaz in June. In July, Temelkov was appointed temporary head of Bulgaria's "National Nabucco Company" until a suitable person was found to fill the position. "The appointment of Mr. Kosev gives a strong boost to the project," said Reinhard Mitschek, Managing Director of Nabucco Pipeline International GmBH.
Source: Standart (23.12.2011)