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

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

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

Bulgaria to Get EUR 850,000 Grant to Improve Gas Transmission Network Bulgaria will receive an EU grant of EUR 850,000 for the rehabilitation, modernization and expansion of its gas transmission system under the Connecting Europe Facility (CEF), an EU funding programme for infrastructure. The financing is part of allocations of almost EUR 180 M in CEF grants for studies and work relating to the construction of gas interconnections between Bulgaria, Romania, Hungary and Austria. EU Member States agreed on a Commission proposal on Tuesday to invest a total of EUR 217 M in key trans-European energy infrastructure projects, mainly in Central and South Eastern Europe. In total, 15 projects were selected following a call for proposals under the CEF, the European Commission said in a statement. Of the 15 proposals selected for funding nine are in the gas sector and six in electricity sector. “In the gas sector, the allocated grants will cover, among others, studies for modernising the Bulgarian gas transmission network which will improve the possibilities for the transport of gas in the region,” which will benefit particularly Greece, Romania, Macedonia and Turkey, according to the statement. Making available EU funding for the interconnector linking gas networks in Romania, Bulgaria, Austria and Hungary “is an important development for the EU gas market as this will allow gas from the Caspian region and other potential sources, including LNG, to reach Central Europe,” the European Commission said. The European Commissioner for Climate Action and Energy Miguel Arias Canete commented in the statement: ”With this funding we will help secure supplies and fully integrate Europe's energy market by connecting networks across Europe. We must press ahead with the modernisation of our energy networks to bring any country still isolated into the European energy market.”
Source: Monitor (20.01.2016)

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

Bulgaria's Bulgartransgaz to open 21.8 mln euro gas pipelines tender in H1 2016 - EBRD Bulgarian gas transmission system operator Bulgartransgaz plans to open tenders for construction of gas pipelines to connect five municipalities to the national gas transmission network, at a total value of EUR 21.8 million by the end of the first half of 2016, the European Bank for Reconstruction and Development (EBRD) said on Friday. Bulgartransgaz intends to use grant proceeds provided by the Kozloduy International Decommissioning Support Fund (KIDSF), administrated by the EBRD for the project, as 50% of the project will be funded by KIDSF and 50% by Bulgartransgaz, the EBRD said in general procurement notices, posted on its website. The planned 122 km-long gas pipelines will connect to the national gas transmission network the municipalities of Svishtov, Pirdop, Panagiurishte, Bansko and Razlog. The project implementation is expected to take about 50 calendar months.
Source: Capital (05.02.2016)

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

Bulgaria completed a BGN 70 million upgrade of a gas compressor station in the village of Lozenets on the Black Sea coast. The upgraded station is the second one in a 200 million reconstruction project, which envisages the upgrade of four gas compressor stations. The upgrade of the facilities was carried out by Bulgarian construction firm Glavbolgarstroy, whereas the equipment is delivered by US company Solar Turbines. In October 2015, the upgrade of the Ihtiman gas compressor station worth EUR 17.7 million was completed. Strandzha and Petrich stations are the next to be refurbished to meet EU standards.
Source: Monitor (07.03.2016)

PM Borissov Opens Renovated Compressor Station Lozenets Prime Minister Boyko Borissov opened the renovated compressor station Lozenets near the southeastern town of Straldzha on Friday. "After talking for years about diversification of natural gas supplies, while using old compressors that do not permit it, now we can transport gas from various sources and in all directions. In about 20 days, two more such reversible compressors will be completed in Strandzha," Borissov said during the opening, which was also attended by Energy Minister Temenouzhka Petkova, Transport Minister Ivaylo Moskovski, US Ambassador to Bulgaria Eric Rubin, Bulgartransgaz Executive Director Georgi Gegov and business representatives. Borissov described the new facilities as a huge progress, explaining that they allow Bulgaria to negotiate the Southern Gas Corridor, the gas hub and everything gas-related. "At this stage, we are ready to start building the gas interconnector with Turkey," he noted, adding that an agreement has been signed with Greece as well. "We are starting a joint training between Interior Ministry and Defence Ministry forces, so that we can be ready for all possible situations, including to close the border checkpoints in the event of a migrant wave from Greece and Macedonia," Borissov commented during the gas compressor's opening. According to the Prime Minister, Bulgaria's neighbours have been informed about the training. The holidays will be used to redeploy the two ministries' forces and equipment, he added. Borissov said that the police officers and servicemen will patrol jointly and the refugees who enter Bulgaria outside border crossings will be returned to the countries from which they entered. Enhancing the security along the border with Greece will not happen at the expense of the border with Turkey, he said. Answering a question, the Prime Minister said he could not give a deadline for completing the fence along the Bulgarian-Turkish border, because the terrain is complicated. "I believe that Brussels will accept my proposal to have people enter EU countries only through official border checkpoints. We can't legalize illegal emigrants anymore," he added.
Source: investor.bg (08.03.2016)

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

Bulgaria's Gas Grid Operator Takes Step to Market Liberalization Gas grid operator Bulgartransgaz has announced it is ready with a draft set of balancing rules for the gas market, a move that constitutes the first step toward liberalization. Balancing gas purchase contracts, the rules themselves, and other documents are available (only in Bulgarian as of the moment) on Bulgartransgaz's website. The documents are due to be submitted to the national energy regulator, the Energy and Water Regulatory Commission (KEVR). A Bulgartransgaz official has added that they are aimed at providing guarantees of non-discriminatory for any company willing to use the capacity of the gas transportation network, creating "incentives" for companies across the country. A mechanism must be established under the new rules for the submission of queries by companies vying to book capacities.
Source: Capital (24.03.2016)

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

Bulgaria contracts Austria's Habau to complete works on gas link with Romania Bulgarian state-owned gas transmission system operator Bulgartransgaz signed on Wednesday a contract with Austrian construction company Habau PPS Pipeline Systems for the completion of the underwater section of a gas interconnector with Romania, Bulgaria's energy ministry said. The construction of the 2.1 km section should be completed in 119 days, the ministry said in a press release. The value of the contract was not disclosed. However, upon the launch of the tender to select a contractor Bulgartransgaz said its estimated value was 4.7 million euro ($5 million), VAT excluded. The total costs of the 25-km Bulgaria-Romania gas link are estimated at 24 million euro. The project is co-financed with 13.3 million euro in EU funds. The gas link, which was due to go live in 2015, will connect the southern Romanian village of Comasca with Marten, in northern Bulgaria, under the Danube river. The maximum design capacity of the pipeline will be 1.5 billion cu m a year. Bulgaria imports about 90% of the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania. In a bid to diversify its gas sources, over the past few years the country has stepped up the construction of gas interconnectors with its neighbours.
Source: mediapool.bg (07.04.2016)

Bulgartransgaz awards EUR 22 mln gas looping contract to local consortium - TED Bulgaria’s gas transmission system operator Bulgartransgaz has awarded a BGN 43.2 million contract for the construction of a gas looping in the section Lozenets-Nedyalsko to a local consortium named after the project. The document does not reveal until when the works should be completed. Òhere were six bidders for the project, three of them were disqualified. The consortium, which won the procurement for the nearly 25 km long looping, comprises of three companies - Glavbolgarstroy (GBS), GBS Infrastrukturno Stroitelstvo, and Technoeksportstroy, mediapool.bg said. Last month Glavbolgarstroy completed a 70 million levs upgrade of a gas compressor station in the village of Lozenets on the Black Sea coast. Looping is a pipeline section laid parallel to the main gas pipeline and connected to it. It is tied in for increasing flow efficiency of the pipeline or for reducing the pipeline pressure loss, as well as for spacing extension.
Source: Capital (07.04.2016)

From next year gas deposit in Chiren will accommodate twice bigger amount of natural gas. This will fully cover domestic consumption for 6 to 8 months, the executive director of Bulgartnasgaz Georgi Gegov said. With the support of the European Commission Mechanism for cross country cooperation the company has won funding of EUR 220 million to double the flow of the deposit - that means acceleration from 550 million to slightly over 1 billion. Bulgartransgas will put into operation the reconstructed compressor station Strandja. The station, located near the border with Turkey is very important for the transit of natural gas.
Source: National radio (11.04.2016)

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

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

Bulgaria, Romania to Construct Back-up Gas Pipeline Under Danube Bulgaria and Romania will construct a back-up natural gas pipeline under the Danube river. This was announced by the transmission system operator in Bulgaria – Bulgartransgaz on Tueday. In the beginning of April, Bulgartransgaz and its Romanian counterpart Transgaz signed a contract for the construction of the main gas pipeline of the Danube river undercrossing. In addition to the main pipeline, representatives of the management of Bulgartransgaz and Transgaz signed on Monday a contract for the construction of back-up pipeline of the crossing of the Danube river to interconnect the gas transmission systems of the two countries. In compliance with Romanian legislation, the association INSPET has been selected as the lead contractor for the project, while HABAU PPS Pipeline Systems has been chosen as the associated company. The Austrian HABAU was selected as the lead contractor for the construction of the main pipeline, which should become operational in the middle of the summer. According to the schedule, the back-up pipeline should be completed within 214 days after the opening of the construction site on the territory of both countries. The crossing will measure 2.1 kilometres in length and the annual maximum capacity will be 1.5 billion cubic metres. As with all other interconnections with neighbouring countries, the one with Romania is expected to improve the safety of Bulgaria's energy supplies.
Source: Dnevnik (01.06.2016)

power holders are adding new legislative texts which will limit the expenditures in the energy sector. GERB will propose an amendment, according to which two power plants - the Vidahim TPP and the Svishtov TPP - will stop receiving high prices for their energy. The effect will be 50 million leva of savings a year, or 1.50 leva per MWh, show calculations of energy experts from GERB. Parliament will pass the revisions very quickly - they will be debated directly on second reading together with other changes in the Energy Act. The revisions will not affect the heating companies, whose main owner is businessman Hristo Kovachki, the daily comments.
Source: Capital (02.06.2016)

National Assembly decided two more state companies to pay into the NEK fund Electricity System Operator (ESO) and Bulgartransgas will pay 5% of their revenue to the fund for saving NEK after MPs adopted the amendments to the Energy Act. In ESO, which owns the high-voltage network, these deductions will be made from the company's revenue for network access and revenue from electricity transfer on it. Bulgartransgas, which owns the gas transmission network in the country, will pay 5% of its revenue from access and transmission, but only in the gas network. 5% fee is introduced on revenue of Chiren facility for storage of natural gas. It's also owned by Bulgartransgaz. According to lawmakers, additional revenue to the fund "Security of electricity system" will be BGN 30 mln per year, BGN 17 mln from ESO and the remaining BGN 13 mln - from Bulgartransgas.
Source: Monitor (09.06.2016)

Bulgaria, Slovakia Agree to Work for Building Eastring Gas Pipeline Bulgaria and Slovakia have signed an agreement for future gas supplies to the Balkan country via the proposed Eastring pipeline. Under the memorandum of understanding signed by the respective gas pipeline operators of the two countries, Bulgartransgaz and Eustream, in Sofia on Thursday the two companies will work jointly to provide EU financing for the project as well as test market interest in the pipeline. Eastring had been proposed by Slovakia after the suspension of the South Stream project, which would have brought Russian gas to Europe via a pipeline under the Black Sea coming ashore in Bulgaria. The proposed pipeline is among the priority projects for financing under the European Commission investment plan for Europe. The pipeline would link Slovakia with the Balkans and existing gas pipelines in Ukraine, Slovakia, Czech Republic, Hungary and Romania to the planned Balkan gas hub near Bulgaria’s Black Sea port of Varna. The project will give a boost to Bulgaria's objective to become a regional gas hub in the Balkans, which could help the country reduce its almost total dependence on imports of Russian gas via a single transit pipeline crossing Ukraine. Bulgaria’s Energy Minister Temenuzhka Petkova and Slovakia’s Economy Minister Peter Ziga attended the signing of the MoU which took place on the sidelines of the 14th Gas Infrastructure Europe Annual Conference in Sofia organised by Bulgartransgaz.
Source: actualno.com (10.06.2016)

Bulgaria Will be Able to Get Third of Its Gas Supplies from Greece Bulgaria will be able to receive up to three million cubic metres of natural gas from Greece daily. This becomes possible after the modernisation of the compressor station in the town of Petrich, which was unveiled officially on Monday. The ceremony was attended by Bulgarian Prime Minister Boyko Borisov, Energy Minister Temenuzhka Petkova, executive director of Bulgartransgaz, Georgi Gegov, as well as representatives of local business. Deputy Prime Minister Tomislav Donchev and US ambassador to Bulgaria, His Excellency Eric Rubin, were also invited to attend the ceremony. The investment, which has been funded by the EU, amounts to EUR 17 M and is expected to make Bulgaria more independent in terms of its energy supplies. Through the modernized compressor station Bulgaria will be able to receive a third of its energy supplies from Greece. Bulgartransgaz, Bulgaria’s natural gas transmission and storage system operator, is to complete an inter-operator agreement with the Greek network operator which will provide opportunity for also virtual trade in gas. At present Bulgaria’s annual consumption of gas is slightly above 3 billion cubic metres. Thå reconstructed compressor station provides the first opportunity for diversification of Bulgaria’s gas supplies and there is possibility for connection with the liquefied natural gas (LNG) terminal in Thessaloniki. Meanwhile, Romanian Energy Minister Victor Grigorescu said on Sunday that the pipeline that will connect Bulgaria and Romania under the Danube river, which is expected to enhance the energy security of both countries, will be ready the end of this year. Grigorescu also added that for the first time in a long time Romania has made a commitment to build a new 500-kilometre section of the BRUA (Bulgaria-Romania-Hungary-Austria) pipeline with EU funding.
Source: econ.bg (14.06.2016)

Natural Gas Interconnection Agreement Signed with Greece The natural gas transmission system operators of Bulgaria and Greece signed an interconnection agreement on Friday. Bulgartransgaz and DESFA agreed on the provision of virtual reverse transmission of natural gas from Greece to Bulgaria via the cross-border interconnection point at Koulata/Sidirokastro, Bulgartransgaz reported. The agreement was concluded for an initial trial period of three months from July 1 to October 1, 2016. The signing ceremony was attended by the management of Bulgartransgaz and DESFA, Bulgaria's Energy and Water Regulatory Commission, the Bulgarian Energy Holding, Greece's Regulatory Authority for Energy, and officials from the European Commission and the Council of Ministers in Sofia. The agreement fulfills the requirements of European Commission Regulation 2015/703 of April 30, 2015 establishing a network code on interoperability and data exchange rules. The Regulation requires neighbouring gas transmission system operators to conclude interconnection agreements setting harmonized rules and procedures for orders, corrective orders, distribution of quantities, and exchange of data. The provision of virtual reverse transmission of natural gas via the interconnection point at Koulata/Sidirokastro is in keeping with the principles of Europe's Energy Union, Bulgartransgaz said. This is the first major step towards diversifying the Bulgarian natural gas market. It is also an essential prerequisite for building a Balkan Natural Gas Hub in Bulgaria.
Source: investor.bg (27.06.2016)

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

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

Greek independent gas company M&M exported gas to Bulgaria on July 1. Small quantities have been sold as a test. The deal follows the signing of the gas connection between DESFA and Bulgartransgas, allowing the transport of gas between Greece and Bulgaria. The price of gas has been agreed on a bilateral basis and is based on "a small discount compared to the Bulgarian prices”. Gas was sold by the own gas portfolio of M&M. The exchange has been made through the interconnector Kulata-Sidirokastro.
Source: Agency Focus (05.07.2016)

Bulgaria, Slovakia Sign Memorandum of Understanding on Eastring Gas Project Deputy Energy Minister Zhecho Stankov signed a Memorandum of Understanding on the Eastring Project between the Bulgarian Ministry of Energy and the Slovak Ministry of Economy. The document expresses the support of the two countries for the project in compliance with EU legislation, Stankov's Ministry said Wednesday. Bulgaria and Slovakia acknowledge the need of coordinated work for the implementation of the project. They will also exchange information related to Eastring. The memorandum also says the two countries will identify all intergovernmental and other agreements relevant to the project when the need arises. In the beginning of June, within the 14th Gas Infrastructure Europe Annual Conference in Sofia, the gas operators Bulgartransgas of Bulgaria and Eustream of Slovakia signed a Memorandum of Understanding stating that they will cooperate in researching the opportunities for constructing Eastring on the two countries' territories. Eastring is a project for connecting the gas transmission systems of Slovakia, the Czech Republic, Ukraine, Hungary, Romania and Bulgaria. The Government approved the draft memorandum at a meeting on Wednesday.
Source: 24 chasa (14.07.2016)

EU to grant Bulgaria 15 mln euro for internal electricity interconnection The European Commission said on Friday it has allocated a BGN 29.8 million grant under the Connecting Europe Facility (CEF) funding programme to Bulgarian System Operator (ESO) for the construction of internal electricity interconnection in the country. The planned project will include the construction of a new 400 kV line between Dobrudja and Burgas regions in the northeastern and southeastern part of the country, the European Commission said in a notice on its website. The electricity line will have a length of 100 km. The projects are part of the 10-year plan for development of the electricity network of Bulgaria and the plan for the development of the electricity system of the European electricity transmission network operators ENTSO-E.
Source: investor.bg (18.07.2016)

Bulgartransgas plans investment of BGN 658 million by 2019 In the period 2016 - 2018 the gas company Bulgartransgas plans to invest a total of BGN 658.4 million in the annual programs for pre-investment preparation and investment. This is included in the 10-year development plan of the company, sent for approval to the Commission for Energy and Water Regulation (KEVR). Bulgartransgas plans to develop the national and the transit networks in the coming years and to double the capacity of the gas storage facility in Chiren. The company will upgrade compressor stations and build new variations of the gas network to individual cities, which aims to accelerate gasification in the country. The company points out the key projects, which it will focus on until 2025 - the construction of gas links with neighboring countries, which will be key to improving security of supply of natural gas in Bulgaria. The increased capacity of Chiren by 1 bln cub. meters is of interest not only for the country but also for security of supply in the region.
Source: investor.bg (18.07.2016)

Interest in virtual gas trading from Greece increases Interest and the requested quantities for virtual trading in natural gas from Greece grow, CEO of Bulgartransgas Georgi Gegov said during a public discussion in KEVR on a 10-year plan for the development of gas networks. One of the companies has more than 10 transactions for Bulgarian client, currently 2-3 companies wish to participate in the second month of the test offering of virtual capacity and applications are currently assessed. For the second month, the quantities are greater than the first, i.e. increased interest and quantities, he said. Virtual trade with Greece is already taking place, the volumes are not particularly large, but this is the way, said Gegov. According to him, last week an agreement on a virtual trading natural gas was signed with Romania.
Source: investor.bg (22.07.2016)

Gas Interconnector with Romania to Be Ready by September The gas interconnector with Romania is expected to be ready by the beginning of September, Bulgartransgas Executive Director Georgi Gegov told journalists here on Thursday. He took part in the public discussion at the Energy and Water Regulatory Commission (EWRC) about the ten year development plan for the gas transmission networks. "We talked with our Romanian colleagues, who expressed their readiness to sell locally extracted Romanian gas as soon as this is technically made possible," Gegov said. He expects the first alternative natural gas to come to Bulgaria when construction of the Rousse-Giurgiu interconnector is completed. Bulgartransgas is to hold talks with Macedonia about the construction of an interconnector between the two countries, Gegov said. He later explained that the Macedonian side has expressed interest in building the interconnector in the southwestern region of Petrich, because the neighbouring region in Macedonia is not supplied with gas, while Bulgaria has a good compressor station on its territory there. Gegov told EWRC that the feasibility study was completed this year and the main parameters of the gas interconnector with Turkey are ready. He told journalists that what is happening there is pretty concerning for the region as a whole. Asked about the possibilities for building a second natural gas storage facility in Bulgaria, he said that there are designated areas in Bulgaria, which could be studied, but this is just an idea right now. Interest is growing in virtual trading of natural gas with Greece, Gegov said, adding that an agreement for virtual trading was also signed with Romania last week.
Source: BTA (22.07.2016)

Bulgaria Says Gas Link with Romania to Be Completed in Autumn 2016 Bulgaria will have its gas interconnection with neigbouring Romania completed in the autumn, Energy Minister Temenuzhka Petkova has said. Petkova and her Romanian counterpart Victor Vlad Grigorescu on Saturday inspected the site of the construction of the underwater section of the gas link at Marten, in Ruse Region on the Bulgarian bank of the Danube. "All activities are on schedule, thanks to the good coordination between the gas transmission operators of Bulgaria and Romania, Bulgartransgaz and Transgaz," Petkova said at the construction site, according to a news release from the Energy Ministry in Sofia. The interconnector Bulgaria-Romania will provide an opportunity for diversification of sources and routes of gas supplies in southeastern Europe to fulfil one of the main priorities of the European Energy Union. Vlad Grigorescu said the completion of the project wasn’t easy, but expressed confidence that there will be no delays to construction works. Bulgaria-Romania interconnection has a total length of 25 kilometers, of which 15.4 kilometers of Bulgarian territory, 7.5 kilometers in Romania and 2.1 kilometers on the river bed. Bulgartransgaz and Transgaz signed a contract with Austrian company Habau earlier this year to build a main and a backup pipeline linking the gas transmission systems of the two neighouring countries under the Danube. Flows of natural gas flows between Ukraine, Romania and Bulgaria will be tested by the end of 2016 under interconnection agreements signed by the grid operators of the three countries, petrochemicals market information provider ICIS reported on Thursday.
Source: 24 chasa (25.07.2016)

Over 200 Bulgarian Companies to Get BGN 500 M Off of Their RES Expenses A planned partial exemption of renewable energy expenses via state-aid will be available to more than 200 companies in Bulgaria. The expected budget to be provided is around BGN 94 m per year (about EUR 47 m per year), or some BGN 500 m for the period Aug 1, 2015 – Dec 31, 2020, the Bulgarian Federation of Industrial Energy Consumers (BFIEC) and the Confederation of Employers and Industrialists in Bulgaria (CEIB) said in a joint statement on Wednesday. The measure, as regulated by an ordonnance in June, 2015, was approved by the European Commission, along with feed-in tariffs for renewables set by the Bulgarian RES Act. The required funding will come from Bulgaria’s Security of the Energy System Fund which levies 5% of the revenues of energy producers, distributers and the TSO. BFIEC and CEIB stressed that the measure will send a positive signal to investors about the investment climate in Bulgaria.
Source: Sega (11.08.2016)

Greek energy regulator oks launch of Greece-Bulgaria gas link capacity management tender The Greek energy regulator has approved an invitation to companies to submit binding bids for the management and allocation of capacity on the upcoming Interconnector Greece-Bulgaria pipeline (IGB). Greek and Bulgarian regulators are working together to overcome procedural problems, Greece's Regulatory Authority for Energy said on the government’s Diavgeia website on Wednesday. In April, state-owned Bulgarian Energy Holding (BEH) said that six companies had filed non-binding bids to use the planned gas link - state-owned gas monopoly Bulgargaz, Greece's DEPA and Gastrade, Italy's Edison, Azerbajan's Socar and US-based Noble. Later in April, the company in charge of the project, ICGB, said that nine companies had submitted non-binding expressions of interest (EOI) to use the pipeline. A total aggregate capacity of 4.3 bcm per year was requested for gas transportation services in firm forward mode from Greece to Bulgaria and approximately 1 bcm per year was requested for gas transportation services in firm reverse mode from Bulgaria to Greece, ICGB said at the time. The IGB pipeline, which will be 182 km long, will link the northeastern Greek city of Komotini with Stara Zagora in Bulgaria. It is estimated to cost 220 million euro ($245.5 million). The gas link will carry 3 billion cu m of natural gas annually in its initial stage and will have a maximum capacity of 5 billion cu m per year. It will eventually be connected to the Trans Adriatic Pipeline (TAP), carrying natural gas from the Caspian Sea to Europe through Greece.
Source: Monitor (12.08.2016)

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

Bulgaria to Present Balkan Gas Hub Options Next Week Gas grid operator Bulgartransgaz states that potential investors are to be acquainted with four options drafted by Bulgaria as it aims to launch a "gas hub" project. All possible versions of the hub, which the government has dubbed Balkan, will be showcased on September 5-6 at a conference organized by the state-owned company. Under Sofia's current plans, the project will be run by a company with the state as a majority shareholder. Other shares will be distributed among potential investors. The venture will only operate the infrastructure built for the hub's purposes. 35 companies dealing with gas trade and transit, have confirmed attendance. Other participants include the European Investment Bank, the European Bank for Reconstruction and Development, and pension and investment funds. Sofia is also pinning hopes on gas deliveries via Interconnector Greece-Bulgaria that, once built, will be supplied by the Trans-Adriatic Pipeline and, possibly, liquefied natural gas delivered to Greek and Turkish ports.
Source: econ.bg (31.08.2016)

Balkan Gas Hub: Bulgaria Plans to Keep Ownership of Grid Bulgarian Deputy Prime Minister Tomislav Donchev has said the state intends on retaining the ownership of the existing gas infrastructure despite offering a joint venture for the so-called Balkan Gas Hub project. Some 50% of the new company's shares will be put up for sale. The new entity will be a subsidiary of Bulgartransgaz, the state-owned gas grid operator. The gas network itself, however, has to remain under full control of the state on "national security" grounds, mass-circulation daily 24 Chasa quotes Donchev as saying in the closing remarks of a two-day conference the Bulgarian government set up to pitch the project to investors. Bulgaria hopes to turn into a gas distribution center for Southeast Europe that will be used as a transit destination for gas from Azerbaijan, Russia or other destinations (including LNG deliveries made to Greece). Russian energy giant Gazprom, however, was not among the the companies who had representatives among the several dozen investors taking part in the conference. Prime Minister Boyko Borisov on Monday said Moscow had not received an invitation as there were no "perspectives" for it in the project. But a day later Donchev admitted the project would not be "that viable" without Russian gas even though it could be carried through without such a source in principle. He also announced that, while discussing the project with investors, some of those had offered to build sections of the additional infrastructure that the project would require. Investors heard all possible options to set up the hub and consider gas distribution routes, one leading to Italy and another following the route of the abandoned Nabucco West project. It will be the business partners that will help Bulgaria take the decision, while funding details will be arranged together with the EU Commission, Donchev added. Earlier on Tuesday, an EU official expressed the support of Brussels for talks with Russia or Turkey on the hub project, saying the Commission would take part in such negotiations. The Deputy PM once again denied that the Balkan Gas Hub was an attempt at reviving the ditched South Stream pipeline project with Russia, but made clear Sofia still considered a pipeline going under the Black Sea to the Bulgarian coast to be a possible scenario for Russian gas teliveries to the prospective hub.
Source: Capital (07.09.2016)

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

Bulgartransgaz seeks advisor on Balkan gas hub project Bulgarian gas transmission system operator Bulgartransgaz is seeking an advisor for the planned Balkan hub gas project in a BGN 119,000 tender, according to a notice posted on the website of the government's procurement agency. The consultant will be required to assess the capabilities of state-owned Bulgartransgaz for participation in the construction of the gas hub and adjacent infrastructure on the territory of Bulgaria, the tender notice reads. The advisor should also evaluate the opportunities for supply, consumption and investments. The deadline for submitting offers is November 4. Last week, Bulgarian media quoted a senior European Commission official saying that the country should submit a proposal for feasibility studies for the Balkan gas hub to the Commission by November 9 in order to secure funding for the project.
Source: Sega (16.09.2016)

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

Bulgartransgas, Eustream To Cooperate on Balkan Gas Hub Bulgartransgas EAD and eustream a.s will work towards improving the security of natural gas deliveries in Central and Southeastern Europe and the implementation of the infrastructure projects – gas hub Balkan and gas pipeline Eastring, reported Bulgaria’s Energy Ministry. This is envisaged in the Memorandum of Understanding signed on Friday by the Bulgarian and Slovakian gas grid operators in the presence of Energy Minister Temenuzhka Petkova. Bulgartransgas and eustream will draft a concept for the development of the gas hub in Bulgaria in accordance with the Eastring project. The two parties will analyse and review in detail the technical options for the coordinated implementation of the two projects. An agreement confirms the linkage between the two projects. The Eastring pipeline will serve as a priority western route for the intersystem linking of regional markets and gas hub Balkan. In order to guarantee the security of gas deliveries in Central and Southeastern Europe, the memorandum envisages support for the inclusion of other countries interested in the two projects.
Source: mediapool.bg (04.11.2016)

Balkan gas hub to be connected to the East Ring Bulgartransgas and Eustream agreed to work to improve security of gas supplies in Central and Southeastern Europe and the realization of infrastructure projects - gas hub Balkan and the pipeline East Ring' in a memorandum signed in the presence of Minister of Energy Violet Petkova. The Memorandum of Understanding between the Bulgarian and Slovak gas transmission operators Bulgartransgas and Eustream will develop a concept for the development of a gas distribution hub in Bulgaria in accordance to the idea of a Balkan gas hub. The two sides will analyze in detail and will consider technical options for the coordinated implementation of the two projects. The agreement confirms the connection between the projects. The pipeline East Ring will serve as a priority route for western interconnection of regional markets and gas hub Balkan. In order to ensure security of supply of natural gas in Central and Southeastern Europe, the Memorandum provides support for the inclusion of other stakeholders in the development of both projects.
Source: Standart (09.11.2016)

Bulgaria – Romania Interconnector Starts Operation on November 11 Gas transmission operators Bulgartransgaz and Transgaz S.A. have completed the construction of the gas interconnector between Bulgaria and Romania, the Bulgarian energy ministry said in a statement. The interconnector has a total length of the interconnector is 25 km, with 15.4 km on Bulgarian territory, 7.5 km on Romanian territory, and 2.1 km underwater traverse of the Danube River. The underwater section of the interconnector which includes a main and a back-up pipeline, was constructed by Austrian company Habau. The inauguration ceremony will be held on November 11 in Marten, Bulgaria in the attendance of Bulgarian PM Boiko Borisov, VP for European funds and economic policies Tomislav Donchev, representatives of the Romanian government, the European Commission and others officials, the Bulgarian energy ministry said.
Source: National radio (11.11.2016)

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

By the end of October 2016 the Security Fund of the electricity system raised BGN 264.1 million. Expenses amounted to BGN 198.5 million. The fund was established with legislative changes in July 2015. Producers and traders of electricity, including Bulgartransgas and Electricity System Operator, import 5% of their operating revenue. The fund includes revenues from trading of carbon emissions. The collected funds are used to cover the costs made by the National Electricity Company in its capacity of a public supplier. At the beginning of the month TPP Maritsa Iztok 2 reported that for the first nine months of the year it has payed BGN 33 million to the Fund. Expectations are that by the end of the year the contribution will rise to BGN 44 million. The plant asked for a loan from the Bulgarian Energy Holding to pay its obligations, including to the Fund for the security of the power system.
Source: Duma (21.12.2016)