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

Bulgaria-Romania gas link to go into operation in March The gas interconnector between Bulgaria and Romania is expected to be completed and go into operation by the end of March, Bulgartransgaz said. Once the underwater section is completed, the gas interconnector can go into operation, the company said on Wednesday in a notice on its website. Construction works of the underwater section of the gas interconnector have been delayed due to technical problems related to the geological characteristics of the area under the Danube river, Bulgartransgaz, which, in partnership with Romanian gas transmission company Transgaz, is implementing the project, said. The pipeline on the Bulgarian territory was also delayed due to unexpected circumstances and was completed in August last year, the company added. The 25-kilometre pipeline links under the Danube river the southern Romanian village of Comasca with Marten, in northern Bulgaria. The project includes the construction of a 15 kilometre pipeline in Bulgaria, another 7.5 kilometres in Romania and a 2.5 underwater section. The maximum design capacity of the pipeline is 1.5 billion cubic metres a year, Bulgartransgaz noted.
Source: Duma (09.01.2014)

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

Bulgartransgas will be balancing the gas market Gas transmission company Bulgartransgas is the most likely counterweight to the gas market. This emerged during the discussion of the new rules for trade in natural gas. A few weeks ago the State Energy and Water Regulatory Commission published for discussions the new rules for trade in natural gas. New elements are the introduction of rocker on the market to intervene in situations where gas consumption does not match the stated amounts. The new rules also provide for consumers to switch supplier of natural gas at any time without fees and penalties. These texts were discussed with representatives of the business, gas companies and gas retailers. Bulgarian Association Natural Gas and Bulgarian Federation of Industrial Energy Consumers wanted a system for measuring of consumed amounts natural gas.
Source: investor.bg (22.01.2014)

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

Bulgaria-Turkey gas interconnector may be built in 2 years Gas interconnector between Bulgaria and Turkey may be constructed in a two-year deadline. Bulgarian Minister of Economy and Energy, Dragomir Stoynev, announced the information during the meeting with his Turkish Energy and Natural Resources Minister, Taner Y?ld?z, who is on a visit to Bulgaria, FOCUS News Agency journalist reported. “In the beginning of my mandate I declared that I would work for the stability of the energy sector and for diversification. We held a good meeting. We do not talk about future intentions but about the way things will be done,” Minister Stoynev remarked.
Source: Agency Focus (27.01.2014)

Bulgaria’s Bulgartransgaz to be in charge of Bulgarian-Turkish gas interconnector Bulgaria’s Bulgartransgaz company will represent Bulgaria in the construction of the Bulgarian-Turkish gas interconnector. Bulgarian Minister of Economy and Energy, Dragomir Stoynev, announced the information during the meeting with his Turkish Energy and Natural Resources Minister, Taner Y?ld?z, who is on a visit to Bulgaria, FOCUS News Agency journalist reported. “This is the fastest way to realise this interconnector,” Minister Stoynev remarked. “The gas interconnection with Turkey turns to be one of the major sources of diversification. Mr Y?ld?z and I agreed on establishing the facility as fast as possible but we also agreed on concrete deadlines,” the Bulgarian minister remarked. Minister Stoynev added that an agreement would be inked in March.
Source: Agency Focus (27.01.2014)

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

Completion of the gas connection with Romania is postponed for May A new delay of the completion of the gas link with Romania is looming. The reason is that the Romanian side has not yet managed to break through solid rock under the Danube river and pull the tube on land. Geological problems were discovered in January when it was reached a layer of limestone rocks that prevent normal operation. So the commissioning of the pipeline is expected to be as early as late April or in May, said the director of Bulgartransgaz Kiril Temelkov. The energy minister Dragomir Stoynev said week ago that it is expected the connection to be completed in March and currently are made tests of the pipeline. According to Temelkov however Romanian specialists will pull the pipeline at the end of March and then will launch the test activities. 3eNews tried to reach Temelkov by phone for comment, but he did not answer calls. Thus it remains unclear whether Bulgaria will be able to use before deadline expires European funding allocated for the pipeline. The total length of the pipeline is 25 km and the project is implemented jointly by state-owned Bulgartransgaz and Romanian Transgaz. In future the interconnector will transport 0.5 billion cubic meters of gas a year, but only in the direction to Romania. It is expected a second pipeline to be installed and to build a compressor station on the Romanian bank to be able to supply natural gas for Bulgaria.
Source: Capital (25.02.2014)

Kovachky power plants remained without permits for air pollution Free allowances for greenhouse gases will get 10 out of 11 thermal power plants in the country, because they have fulfilled their investment programs, according to a report of the energy ministry, sent to the European Commission . In early December 2013 Brussels allowed Bulgaria to allocate free allowances of total market value of 945 million euro, Trud daily said. The condition was companies to invest in environment-friendly production and reduce carbon emissions. So the National Plan includes 27 companies, of which one is state-owned - TPP "Maritsa Iztok 2". The plant also has managed to overachieve its investment program and receive quotas. Free emissions will not be received by the enterprises TPP "Brickell", "Maritsa 3" TPP and "Bobov Dol" TPP connected to businessman Hristo Kovachky. Private TPP "Varna" owned by CEZ renounced quotas itself because can not assimilate them, as currently there is implemented a process of units’ ecologization. Power plants of Kovachky currentlyare selling electricity to the National Elecricity Company (NEK) at high prices , which further raises the price mix that of public provider . A few years ago even TPP "Brickell" is expected to cease work due to lack of desulphurization facilities. Currently there is such a facility , but its effectiveness remains unclear. The power plant currently operates on the basis of its permit based on the old European Directive on emissions. Experts say it is impossible TPP "Brickell" to meet the new requirements for ecology hat Europe intends to impose.In "Bobov Dol" TPP the situation is similar as the plant is currently working with one of its units. Every month from now TPP pays fine of 30,000 BGN for excessive air pollution. The TPP management said that unit 3 will work until the end of 2014 regardless of the monthly fines and violations. If we are not profitable , we will stop it, said Vladimir Vladimirov, a member of the company management. He explained that the company has already started construction of desulphurization facilities. After construction of these facilities it is expected to be seen whether they will get the approval of environment and energy. According to the plan last block of TPP "Bobov dol" has to be closed in 2015. Meanwhile it became clear that railways "Freight" stopped the supply of coal to thermal power plants Christo Kovachky. The reason for this measure are 15 million BGN liabilities to the state company, of which over 9 million BGN are overdue, informs Standard daily.
Source: Capital (25.02.2014)

Gas link with Turkey launched Start of gas interconnection with Turkey will be given next week, said Deputy Energy Minister Ivan Ayolov. On February 10, Bulgarian expert group travels to Ankara to prepare a memorandum, agreed between Bulgarian Minister of Economy Dragomir Stoynev and his Turkish counterpart Taner Yildiz. Around March 14 document must be signed. "I hope we will then start the active implementation of the project and within two years the interconnection will be ready," Ayolov said. Thus, Bulgaria will have access to an alternative to Russian gas supplies . The interconnection with Romania should be ready by April as well. Ayolov expressed deep suspicion of any new gas crisis. In case of such however, Bulgaria can rely on stocks in Chiren and the available pipe to Greece, through which the country can receive up to 1.5 billion cubic meters of gas per year.
Source: Standart (06.03.2014)

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

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

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

Bulgaria-Romania Gas Grid Interconnection to Become Functional in June Following a number of technical delays, the Bulgaria-Romania gas grid interconnection will start functioning in June, according to Economy and Energy Minister Dragomir Stoynev. Speaking Wednesday at a conference on natural gas, Stoynev claimed that the delay had been caused by a collapse of the ground below the Danube River, adding that the problem had been dealt with. He explained that Bulgaria would not be able to receive gas supplies through this pipe because Romania had not yet managed to build a compressor station. Stoynev, as cited by dnes.bg, underscored the importance of gas grid interconnections for gas supply diversification, adding that Bulgaria was still unprepared for a recurrence of the 2009 gas crisis. Bulgaria's Energy Minister informed that there was a lag on the part of Greece in the implementation of the gas grid interconnection scheduled to connect Bulgaria to the gas hub in Baumgarten in Austria. He reminded that Bulgaria had been granted EU funding for this gas grid interconnection project, adding that Bulgaria had notified the European Commission about the delay. Stoynev informed that a memorandum for cooperation had been signed recently for the construction of the Bulgaria-Turkey gas grid interconnection, adding that Turkey had given political permission for its completion following a delay of six years. Stoynev did not disclose details about the parameters of this gas grid interconnection project but explained that the memorandum envisaged the opportunity for groups of technical experts of the two countries to work on the project so that it could be completed by 2016. He went on to say that Bulgaria was to receive Shah Deniz 2 gas supplies amounting to 1 billion cubic meters via the gas grid interconnection Komotini-Stara Zagora. Stoynev attributed the delay of the project to the activities of the three countries participating in the project - Bulgaria, Greece and Italy. He cited LNG terminals as another major option for gas supply diversification, adding that Greece was interested in building a joint terminal in the Aegean Sea from where Bulgaria would receive liquefied natural gas shipments from Qatar. "Under no circumstances will Turkey allow LNG tankers to pass through the Bosporus," he commented, adding that as regards LNG supplies from Algeria, all developed gas fields had been sold out and Bulgaria had to make investments in a new gas field to receive LNG shipments from there.
Source: investor.bg (27.03.2014)

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

South Stream will not turn to Crimea The route of the marine part of the pipeline South Stream will not be changed, South Stream Transport spokesman Jasper Jansen stated. A few days ago there started rumors in the European media that the route of the pipeline will be changed because of the accession of Crimea to the Russian Federation. "There is absolutely no such thing , and it is really not possible" Jansen noted. He added that there have been no studies at all so far for a different than the established route. He noted that this would mean a literal doubling of the project. "We are speaking about a total of 16,000 km of pipes. Moreover, South Stream Transport has already signed contracts with suppliers for the first two of four parallel pipelines that will link the Russian city of Anapa with the Bulgarian coast near Varna on the Black Sea" said Jansen. Changing the route of the South Stream was not discussed with the project partners and Brussels , said earlier in Sofia Deputy Economy Minister Ivan Ayolov at the opening of the International Congress " Environmental and Energy Foundations of Sustainable Development." He also added that he has no information that the EU Commission is preparing to freeze the South Stream as a sanction against Russia about its actions in Crimea, said Ayolov. According to the deputy minister, the changes to the Energy Act, which defines the marine part of the South Stream , have nothing to do with the EU. Therefore, the Ministry of Economy and Energy is calm about the upcoming meeting of Minister Dragomir Stoynev with Gunther Oettinger .
Source: Standart (09.04.2014)

Gazprom: Bulgaria can receive Russian gas for at least another 70 years, Serbia wants its profit back Bulgaria will receive Russian gas for at least another 70 years, production complex number 22 Gazprom Dobycha Urengoy Deputy Director Oleg Kabanov informed. For so long are estimated the reserves in the extraction places of the company , if the demand for natural gas in Russia and Europe remains at current levels. However, these stocks remain relatively constant over time . The reason is that for every 1 billion cubic meters of gas producing, the company makes new discoveries for the same amount, said Kabanov. Aleksandar Vucic, First Deputy Prime Minister of Serbia declared an opposition to the practice of Russian oil giant Gazprom, owner of a 56% stake in Serbia's Naftna Industrija Srbije (NIS), taking away the entire EUR 380 million profit of the Serbian company last year. Vucic claimed that Serbia had a right to use the profit according to its 29% stake in NIS. The money would be anyways used to settle the multi-million debt of the Serbian state-owned gas company Srbijagas to Gazprom.
Source: Standart (11.04.2014)

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

The connection is ready: Gas from Greece to Bulgaria can flow within 10 hours From 1 January this year, existing interconnector gas connection between Bulgaria and Greece makes it technically possible for natural gas to flow to our country. This is the implementation of Regulation 994/2010, announced the Ministry of Economy and Energy. The information was confirmed by Bulgratransgaz and reverse supply is technically possible from Greece to Bulgaria through the existing connection point of the gas networks of DESFA Bulgartransgas - Kulata / Sidirokastro for up to 3 mln cub.m. per day . According to the official information, the daily gas consumption in Bulgaria under the present conditions is in the range between 7 and 9 million cubic meters per day. It is important to note that the processing time for reversing the flow at this point is not a month, but up to 10 hours. "After performing the necessary additional reconstructions in Greece, planned to take place in the summer of 2014, the time will be shortened to two hours," Bulgartransgas said.
Source: money.bg (24.04.2014)

South Stream project will not be suspended: Bulgaria Energy Minister South Stream project will not be suspended. Bulgarian Minister of Economy and Energy, Dragomir Stoynev, announced the news after meeting with Gunther Oettinger, European Commissioner for Energy, in Brussels, the Bulgarian National Radio (BNR) reported. In his words, if Bulgaria sticks to observing EU legislation, there are no reasons for the suspension of the construction of the gas pipeline. Minister Stoynev said he had provided the Commissioner with enough information showing Bulgaria did not violate EU legislation through the prepared amendments to the Energy Act. According to Mr Stoynev, the opposition in the country gave Gunther Oettinger wrong information about the essence of these amendments. Dragomir Stoynev said: "I was very surprised by the fact the opposition in Bulgaria may have gave him wrong information. They may want [the project] to be suspended again. This in no way corresponds to the country’s interests. Commissioner Oettinger explicitly stated Russia as well as Gazprom were an important partner for Europe and this project was important for the natural gas deliveries to Europe." Mr Stoynev explained the amendments had only been adopted at first reading and the opposition could file their proposals before the second reading, and, if they were adequate, the authorities would comply with them. The Energy Minister and Commissioner Oettinger will have a second meeting before the second-reading voting, they will continue to have talks on an expert level. According to the Minister, the European Commission has so far not issued criticism concerning the land section of the South Stream gas pipeline. Dragomir Stoynev said the maritime section [of South Stream] was in way different than the other active or future gas pipelines transporting gas to Europe.
Source: Agency Focus (25.04.2014)

Record production of local gas expected in Bulgaria in 2016. By then deposits in the country will gain 1.5 billion cubic meters of natural gas a year or a quarter of the consumption. This is written in the plan for development of the state-owned Bulgartransgas for the period 2014-2023. It is yet to be approved by the State Energy and Water Regulatory Commission. According to the watchdog, boom of local yields will be reported as early as 2015 when it will be 800 million cubic meters. The strategy for Bulgartransgas considered only two secure domestic reserves of natural gas – of the British Melrose near Kavarna and of the Canadians Direct Petroleum near Lovech. Greatest hopes are put on the second field. Estimates are that there are reserves of 22 billion cubic meters. Yield, however, will only be possible in 2015, when the deposit will be linked to the local gas infrastructure.
Source: Trud (28.04.2014)

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

Only a handful of state companies have not met the rules for deposits Eight companies from the energy, industry and transport fields violate the rules for the concentration of deposits, a government report by end-March shows. A few companies exceed the 25% limitation for the concentration of their funds in a single bank and in some cases the reasons are justifiable. Energy companies, the ones which hold the greatest financial resource, have kept their commitment to distribute their deposits in more than one bank. Thus the Bulgarian Energy Holding (BEH) has distributed its funds among five banks, while in March 2013 it kept 88.2% of its money at Central Cooperative Bank (CCB). Bulgartransgaz also abides by the rules. In end-December its net exposure to CCB was over 31%. The companies that still maintain a higher share of deposits at a single bank by end-March are State Consolidation Company, National Company Industrial Zones, Industrial Logistics Park – Burgas and LB Bulgaricum. LB Bulgaricum explained that the reason is a payment from a foreign contractor transferred in the last days of March, Capital daily reports.
Source: Capital (15.05.2014)

EBRD grants Bulgartransgaz funds for 21.8 mln euro gas transmission project Bulgaria’s gas transmission system operator Bulgartransgaz has signed a grant agreement with the European Bank for Reconstruction and Development (EBRD) for the construction of three gas transmission pipelines with automatic gas regulation stations (AGRS), estimated at 21.79 million euro ($30 million), Bulgartransgaz said on Thursday. Some 11 million euro for the implementation of the project will be financed by grant funds provided by the Kozloduy International Decommissioning Support Fund (KIDSF), administered by EBRD and set up with EU funds to support projects related to the decommissioning of four nuclear reactors at Kozloduy NPP as well as to supports projects for restructuring and upgrades in Bulgaria's energy sector. The remaining 10.79 million euro will be co-financed by Bulgartransgaz with own funds. Construction works of the three gas transmission pipelines, which will create some 500 jobs, is planned to be completed by 2016. The gas pipeline branches will have a total length of 122 metres and will be on the territory of the municipalities of Svishtov, Pirdop, Bansko, Panagyurishte, and Razlog, Bulgartransgaz said in a press release. The projects implementation will enable natural gas supply to seven other municipalities - Belene, Nikopol, Zlatitsa, Strelcha, Mirkovo, Chavdar, and Chelopech by construction of gas distribution networks from these branches. Over 104,000 people from the 12 municipalities, with an estimates total annual gas consumption of 183 million cubic metres, will have access to natural gas after the implementation of the project, according to the company. Bulgartransgaz is part of state-operated Bulgarian Energy Holding (BEH)
Source: investor.bg (23.05.2014)

Bulgaria's Bulgartransgaz EAD received funding to build three gas pipelines Bulgartransgaz EAD and the European Bank for Reconstruction and Development (EBRD) signed a contract, by which Bulgartransgaz will receive grant assistance from the Kozloduy International Decommissioning Support Fund (KIDSF). The funding is for the building of three gas transmission pipelines with automatic gas regulation stations to the Bulgarian municipalities of Svishtov, Panagyurishte, Pirdop, Bansko and Razlog. The total cost of the three projects is at the amount of EUR 21.790 million, while the amount that Bulgartransgaz will invest is EUR 10.790 million. The construction of the interconnectors is set to be finished by 2016.
Source: Standart (23.05.2014)

Greece's DESFA Ready to Reverse Gas Flow to Bulgaria Greece's gas transmission network operator DESFA has guaranteed its readiness to reverse gas flow through the reverse-flow gas grid interconnection Kulata/Sidirokastro. As a result, Bulgaria will be able to receive gas supplies from Greece, in the case of a gas crisis. The gas company specifies in a statement that it has concluded the first stage of the upgrade of the existing gas grid interconnection, installing valves which allow the reverse flow of natural gas, according to reports of investor.bg. Remote control of the Kulata/Sidirokastro station has also been introduced. The investment amounts to EUR 3.3 M and was fully covered by DESFA. The Greek gas company argues that the upgrade contributes to the development of the regional gas markets in Southeastern Europe. DESFA expects gas traders in Bulgaria and Greece to express interest in the new capacity of the gas grid interconnection. The finalization of this stage of the upgrade of the gas grid interconnection comes against the backdrop of the threats of Russian Gazprom to cut gas shipments to Ukraine on June 3. Gas deliveries to Ukraine will be suspended if the country fails to pay in advance for June deliveries or if the talks between the EU, Russia and Ukraine collapse.
Source: Standart (30.05.2014)

Bulgaria seeks money from EIB and EBRD for a gas interconnection with Greece Bulgaria is conducting negotiations with the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) for a loan for construction of a gas interconnection between Haskovo (Bulgaria) and Komotini (Greece), Ivan Aylov, Deputy Minister of Economy and Energy said. The construction of the gas pipeline is expected to be completed by end-2016. Bulgarian Energy Holding (BEH) should take out a loan of EUR 80 million for the construction. The loan will be government guaranteed.
Source: 3e-news (05.06.2014)

Bulgaria won a case in the court of EU on the conditions for access to gas networks. It was initiated by the European Commission amid a criminal proceeding for breaches of the EU regulations. The proceeding was initiated in 2009 because Bulgartransgas did not allow traders of gas to sign contracts with gas operators for virtual gas transport in the direction opposite to the direction of the physical movement of gas in the tube. According to the Bulgarian authorities, the country has no such obligation, but Bulgartransgas already meets the requirements of the EC.
Source: Sega (06.06.2014)

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

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

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

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

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

Bulgaria-Romania Gas Link Suffers Further Delay A gas interconnector with Romania being built since 2012 will not be operational before September, sources close to the construction say. The 25-kilometer-long connection between Bulgaria's city of Ruse and Romanian Gyurgevo was initially scheduled to be ready in end-2013 at the latest, but the deadline was extended over technical difficulties. Sources close to Bulgartransgaz, the system operator in charge of the interconnector, told website Econ.bg that a broken pipe going under the Danube River was the reason for the latest delay. Attempts are now under way to pull the pipe out of the waters, with experts called on site to provide assistance, the informants have assured. Apart from the link under construction, Bulgartransgaz intends to build another pipeline duplicating the first to boost capacities. The 2009 gas dispute between Russia and Ukraine prompted Bulgaria to connect its gas grid to those of Romania, Greece, Turkey and Serbia. In April, Economy Minister Dragomir Stoynev announced building of the link with Greece is to start at the end of this year.
Source: news.bg (22.07.2014)

Turkey approves South Stream offshore section The Turkish Ministry of Environment and Urbanisation has approved the Environmental Impact Assessment Report (EIA Report) for the section of the South Stream Offshore Pipeline that will cross the Exclusive Economic Zone (EEZ) of Turkey, a press release informs. The pipeline will be constructed at a distance of over 110 km from the Turkish coast, in waters up to 2200 m deep. Due to the anoxic nature of the Black Sea environment, with virtually no oxygen below 100 - 200 m, hardly any life is found at these depths. Therefore, little environmental impacts are expected during pipeline construction. Furthermore, fishing activities generally take place closer to the coast and pipeline construction is not expected to have a significant effect on these activities. Offshore pipe laying will start in Russian waters in late 2014 and the first vessel will enter the Turkish EEZ in the first quarter of 2015. The first pipeline will be operational by the end of 2015. Turkey has expressed its interest to host the onshore pipeline as well, after the European Union's resolution started the entire South Stream saga.
Source: Standart (25.07.2014)

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

Gazprom Injects EUR 100 M into South Stream Transport B.V. The Board of Directors of Russian energy giant Gazprom decided on September 10 to inject EUR 100 M into the capital of the South Stream Transport joint venture. The move was reported by the press office of Gazprom. South Stream Transport B.V. is a joint venture tasked with the planning, construction and exploitation of the offshore section of the South Stream gas pipeline. Gazprom controls 50% of the joint venture, Italian Eni has a 20% stake and French EDF and German Wintershall own 15% stakes each. The offshore section of the South Stream gas pipeline consists of 4 pipeline strings, each of them with a length of over 930 km.
Source: vesti.bg (16.09.2014)

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

Greece and Bulgaria discuss gas imports Poland, Slovakia and Austria have reported slight decline in supply from Russia in recent days. Romania's Energy Minister stated on Tuesday that Russia was intentionaly creating problems with gas supplies in order to cause concerns in EU states. "We are working to reverse natural gas via an existing gas pipeline with Greece, as we could receive additional quantities between 1 to 3 million cubic meters per day," said Bulgaria's Interim Economy Minister Vasil Shtonov. Bulgaria plans to reserve capacity at a liquefied natural gas terminal near the Greek capital and then pump it through an existing pipeline between Bulgaria and Greece, which currently transfers Russian gas to Greece. Bulgaria can use 4 million cubic metres per day while its daily consumption amounts to 10-11 million cubic metres. "Reserves in the Chiren gas storage facility will be sufficient for 120 days," said the Bulgarian Minister. Bulgaria, one of the European Union countries most exposed to possible gas supply cuts, said that its heating utilities will use heavy fuel oil instead of gas in case of supply cuts.
Source: Standart (19.09.2014)

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

Chiren will store twice as much gas At least EUR 200 million will be needed to Bulgartransgas to expand the storage capacity of natural gas in Chiren, said Kiril Temelkov, executive director of the gas operator. The company will apply for funding from the European Commission to make this investment. Most likely this will happen under the ‘Connected Europe' mechanism. Bulgartransgas’ ambitions are to turn the Chiren gas storage facility into one of regional importance. Temelkov recalled that a Czech company has estimated that the capacity of Chiren can be increased to 1 billion cubic meters. Yields from the deposit also can increase to 10-12 million cubic meters per day in order to be able to fully cover the gas consumption in Bulgaria during the winter. The final investment decision how much money will be needed for the extension will be made no later than the beginning of 2016.
Source: Standart (24.09.2014)

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

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

Caretaker Govt Replaces CEO of South Stream Bulgaria Dimitar Gogov, former head of state-owned gas supplier Bulgargaz EAD, has been appointed CEO of South Stream Bulgaria, the company tasked with building the Bulgarian section of the South Stream gas pipeline. South Stream Bulgaria decided at a general meeting on October 3 to replace the CEO, Vladimir Inkov, with Dimitar Gogov, according to a media statement published on the website of the Ministry of Economy and Energy. “We remind that the governing body of South Stream Bulgaria did not comply with the protocol decision of caretaker Economy and Energy Minister Vasil Shtonov from August 11, 2014. Despite an explicit ban, a capital hike of South Stream Bulgaria was registered in the Trade Registry on August 18, 2014,” the statement says. According to the Ministry of Economy and Energy, the change of CEO is aimed at protecting Bulgarian interests and guaranteeing maximum benefits from the project, provided that it is implemented. Caretaker Economy and Energy Minister Shtonov had vowed earlier to refer to the prosecuting authority the management of South Stream Bulgaria for increasing the capital of the company by BGN 191 M despite an explicit ban of the Ministry on any activities under the project until the pronouncement of the European Commission on the matter, according to reports of Sega daily.
Source: Darik Radio (07.10.2014)

Bulgaria's Gas Links with Turkey, Serbia and Greece 3 to 5 Years Delayed There is currently no decrease in Bulgaria's gas pipeline network pressure, or in the delivered gas volumes from Russia, Deputy Minister of Economy and Energy Anton Pavlov said. He pointed out that Bulgaria properly fulfills its obligations regarding the gas transits to other countries, Bulgarian Telegraph Agency reports. He, however, pointed out significant delays in all gas interconnections projects. The delays are of three to five years, Pavlov said. The Caretaker government is actively working for the implementation of these projects - the OP Competitiveness provides for a feasibility study of the gas interconnection between Bulgaria and Serbia, said Pavlov. He noted that there are important archaeological sites along the route and a solution is being sought. The Bulgaria – Greece interconnection is also actively developed, a plan of its route near the town of Kardzhali is to be approved, said Pavlov. A feasibility study of the gas link Bulgaria – Turkey is to be completed. “We are ready with this study, we are waiting for the Turkish side to set the price of the gas and the transit,” said Pavlov.
Source: Dnevnik (08.10.2014)

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

Bulgaria’s Domestic Gas Production to Cover 34% of Gas Needs by 2016 In two years’ time, 34% of Bulgaria’s gas needs will be covered through local production, according to a forecast of state-owned gas transmission operator Bulgartransgaz. The forecast is included in the 10-year gas grid development plan of the company which is to be reviewed and approved by the State Commission for Energy and Water Regulation (DKEVR) next week, according to econ.bg. In 2016, Bulgaria’s annual consumption is to amount to 3,850 billion cubic meters of gas, compared to a current rate of 2,960 billion cubic meters of gas, according to Bulgartransgaz. Bulgaria’s gas production is to increase to 1.3 billion cubic meters of gas, compared to a current rate of 230 million cubic meters of gas, with domestic output expected to jump to 800 million cubic meters of gas in 2015. The anticipated increase in local gas production is explained with the increase in the number of new concession contracts for gas field exploration. According to Bulgartransgaz, the total gas volume of the Galata exploration block, the Kavarna gas field, and the Kaliakra gas field is estimated at 1.7 billion cubic meters of gas (440 million cubic meters of gas a year), with the production capacity expected to start dwindling as the gas fields become depleted. The Galata exploration block is being developed by Melrose Resources, which was acquired by Ireland’s Petroceltic in 2012. The latest seismic tests of new territories in the Galata exploration block indicate 23% likelihood of the presence of new gas quantities of 3.5 billion cubic meters of gas.
Source: econ.bg (14.10.2014)

South Stream vs Southern Gas Corridor? Today the European Union is no longer that interested in the South Stream gas pipeline project, Jerzy Buzek, Chairman of the European Parliament Energy Committee, said recently. Imports of liquefied gas from Qatar are one option for the diversification of natural gas supplies. And the Ukrainian news agency Unian has forecast that the victory of GERB that won the parliamentary elections in Bulgaria can actually spell the end to this gas pipeline. Works have been frozen and a party is coming to power which though it generally supports the project has raised the condition to get it aligned with European rules, Unian reports. South Stream is the gas pipeline aimed to diversify Russian natural gas supplies to Europe by bypassing Ukraine - a stone in the shoe of gas giant Russia. At this stage the European Union and the Russian Federation have not shifted their grounds - Moscow believes that the gas pipeline is an international project and should not comply with European standards. Brussels however expects the Russian side to submit an application for an exception to the rules of the third liberalization package which favors energy market liberalization.
Source: Standart (20.10.2014)

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

Azerbaijan plans gas supplies to Hungary Energy-rich Azerbaijan considers supplying natural gas to Hungary, Azerbaijani President Ilkham Aliyev said on Wednesday in an interview on Hungarian television. “We consider Hungary as a partner in energy cooperation and are studying routes for Azerbaijani gas supplies to Hungary,” Aliyev said. “This may be the Bulgaria-Rumania-Hungary route or the Ionian-Adriatic pipeline, which will run across the Balkan countries and stretch further to Hungary from Croatia. We need to choose the route acceptable for all of us. Considering the Southern Gas Corridor project, which we’re implementing, and Azerbaijan’s gas reserves, I have no doubts that Hungary and Azerbaijan will become partners in the gas sphere,” Aliyev said. The Southern Gas Corridor project, which Azerbaijan is implementing with its partners, “will fully remake Europe’s energy map,” the Azerbaijani president said. Hungary and Azerbaijan signed a strategic partnership declaration in Budapest on Tuesday envisaging natural gas supplies to Central Europe.
Source: econ.bg (13.11.2014)

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

R.I.P. South Stream: Bulgaria loses EUR 400 million/ year just from the transit fees Bulgaria is about to lose billions of euros from the non-realization of the South Stream gas pipeline, envisaged to transport Russian gas to Europe by bypassing Ukraine. The project, which has been frozen by the European Union due to non-compliance with the Third Energy Packet, was now withdrawn by Russian President Vladimir Putin during his visit to Turkey. He recalled that Bulgaria was forcasted to receive EUR 400 a year from just the transit of gas. Putin accused the EU of denying Bulgaria, heavily dependent on Russian gas, its sovereign rights, and said that blocking the project "is against Europe's economic interests and is causing damage". "If Bulgaria is not able to behave as a sovereign state, let it ask the Commission for the money from the lost profits", the Russian President noted. The news shocked Bulgaria, which was unable to take a stance between the EU and Russia. "At the time of Ivan Kostov, we wasted the chance of the Blue Stream. Now we are about to repeat the mistake" commented angrily MPs and experts.
Source: news.bg (02.12.2014)

Bulgarian Energy Holding Reshuffles Supervisory Board of Bulgartransgaz The Bulgarian Energy Holding (BEH) has made changes to the Supervisory Board of state-owned gas transmission operator Bulgartransgaz. The new members of the Supervisory Board of the company are Iliya Ivanov, Kiril Georgiev, and Vladimir Mitrushev. They replace Krasimir Vitanov, Yovka Doychevska, and Denitsa Beyazova. The changes are aimed at speeding up the projects for the connection of Bulgaria’s gas transmission grid to those of its neighboring countries and the upgrade of the Chiren underground gas storage, according to a media statement of BEH.
Source: Standart (02.12.2014)

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

Serbia Is Preparing Project for Gas Grid Interconnection with Bulgaria Serbia is preparing the tender documents for the gas grid interconnection with Bulgaria, according to Energy Minister Aleksandar Antic. He notes that Serbia’s budget for 2015 envisages funding for the preparation of a new spatial plan which will specify the exact route of the gas pipeline. “The EU provided funding to Bulgaria for their section, while we are in talks for the funding of the Serbian stretch,” Antic explained. The Serbian section of the Bulgaria-Serbia gas grid interconnection is to link Nis to Dimitrovgrad. “The gas grid interconnection was designed earlier and is not related to the South Stream gas pipeline project,” Blic informs. On the other hand, Michael Davenport, Head of the EU Delegation to Serbia, made clear that the EU was ready to include Serbia in the project for the construction of a gas interconnection to Bulgaria, thereby contributing to the wider access of Serbia to alternative gas supply sources, including LNG.
Source: Dnevnik (08.12.2014)

Bulgaria, Greece, Romania to Develop Regional Gas Infrastructure Bulgaria, Greece, and Romania have signed a contract on cooperation in the development of regional gas infrastructure. The contract was signed Tuesday by the energy ministers of the three countries. In February 2011, the EU decided that each Member State had to have at least two sources of natural gas and electricity by 2014 in order to be able to cope with a cut-off of Russian supplies. Romania still lacks a connection to Bulgaria’s gas grid, despite the fact that a project for the construction of a gas pipeline between Giurgiu and Ruse has been available for years. The gas pipeline, evaluated at around EUR 24 M, is to be completed by 2016. Romania’s gas transmission grid is connected to those of Hungary and Moldova. In the case of a suspension of imports from Russia, however, it will not be able to make up for the losses through these connections because the gas imports from Hungary are negligible and the pipeline to Moldova is used for exports.
Source: Presa (10.12.2014)

A hub instead of a pipeline I: Bulgarian PM omes up with a plan on how to revive the South Stream Bulgarian Prime Minister Boyko Borisov come up with a draft of a plan of how to revive the abandoned South Stream gas pipeline. Besides attracting Russian gas to flow through Bulgaria according to Moscow's conditions, the new plan will also satisfy the requirements of the Third Energy Liberalisation Package of Brussels. The idea of the Bulgarian PM is to take the idea for building a gas hub, outlined by Russian President Vladimir Putin in early December in Ankara. According to Borisov's plan, instead of a continuous pipeline, Bulgaria would build a so-called gas hub with buffer storage, which would store Russian gas. The construction of the hub would be financed by Brussels, Borisov insists. Then the natural gas would be transported to the other European countries participating in the project - Serbia, Greece, Croatia, Slovenia, Hungary, Austria and Italy, and also to Romania, Macedonia and even Ukraine. According to Borisov, this plan would eliminate the possibility for Brussels to impose criminal procedure against Bulgaria for failure of compliane with the Third Energy Package.
Source: Sega (11.12.2014)

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

Russia and Bulgaria to hold new talks on South Stream The Russian Ministry of Energy may schedule a meeting with Bulgaria after December 19 to discuss the future of South Stream gas pipeline. A ministry spokesman announced that a meeting is planned with Bulgarian government representatives, but it will take place after December 19 because the department has a very busy schedule and the proposal from Bulgaria to meet came too late. For now the date of the meeting has not been fixed. At the beginning of this month Russian President Vladimir Putin said that Russia could not continue with the construction of the pipeline because of the uncooperative attitude of the EU. The Russian President also said that Bulgaria would lose 400 million dollars a year from the termination of the project, which is why our country should request compensation from the European Commission.
Source: Standart (18.12.2014)