Natural Gas Price Goes Up 2.75% in Q1 of 2018 The price of natural gas goes up by 2.75 per cent in the first quarter of 2018. The increase was approved by the Energy and Water Regulatory Commission after an application by public gas supplier Bulgargaz EAS. The regulator's decision sets the Q1 price at 52.65 leva per 1,000 cu m or 33.39 leva/MWh (pre-excise and VAT). It is 2.75 per cent higher than the price for the last quarter of 2017 and is formed on the basis of the applicable pricing model. The approved new price includes a component for "public supply" (4.76 leva/1,000 nm3) and a component for "public obligation" (1.35 leva/1,000 nm3) which covers the costs of the operator for gas storage in the Chiren gas storage facility according to an emergency action plan. The prices does not include the price of access to, and transmission along the gas transmission network and clients should pay these to the end-suppliers as per the approved pricing model. The 2.75 per cent increase is not going to drive up the price of heating energy during the ongoing heating season. The price of electricity for household and non-household users on the regulated market will stay unchanged, said the regulator.
Source: Monitor (02.01.2018)

Bulgartransgaz to buy South Stream assets for BGN 13 mln The state gas operator Bulgartransgaz will buy assets of the Bulgarian-Russian company South Stream Bulgaria worth more than BGN 13 million, which will be used for the construction of the gas distribution center near Varna. This is clear from a public procurement contract for direct negotiation between the two companies on the purchase of 28 land plots and the rights to build on five properties. The assets will probably be used for the realization of the gas hub project near Varna. The South Stream gas pipeline project was officially suspended in December 2014, but the joint venture for the implementation of the route through Bulgarian territory still exists. Although with only three managers and virtually no activity, it has properties and fixed assets for a total of nearly BGN 37 million,it generates wage costs, etc.
Source: Capital (09.03.2018)

Bulgaria signs deal for Balkan gas hub feasibility study - energy min Bulgarian gas transmission system operator Bulgartransgaz signed a 2.3 million levs ($1.4 million/1.2 million euro) contract for drafting a detailed feasibility study on the proposed Balkan gas hub project with a tie-up between Bulgaria’s EMG consult and Swiss-based AF consult, the energy ministry said on Thursday. The feasibility study aims to assess the commercial and technical viability of the project for construction of Balkan European gas distribution centre and define the business model for its implementation, the energy ministry said in a statement. The consortium must submit an interim report on its findings within 40 days, while the final report has to be completed within a 110 day-period. In December 2014, the Bulgarian government proposed to the European Commission to build an EU-funded regional gas hub near the Black Sea port of Varna to dispatch gas deliveries to the rest of Europe - to Greece, Romania, Hungary, Croatia, Slovenia and, via those countries, to EU member states in central and western Europe, as well as to non-EU Serbia, Macedonia, and Bosnia and Herzegovina. Gas can be fed into the hub from Russia, from Bulgaria's potential gas deposits in the Black Sea or, via interconnectors with Greece and Turkey, from the Caspian region or the Eastern Mediterranean, or from the Greek and Turkish LNG terminals, the government said at the time. The gas hub could also be supplied via an interconnector with Romania, which is estimated to have significant deposits in the Black Sea shelf. Bulgaria is heavily dependent on Russian gas supplies. The country imports almost all the gas it needs to cover its domestic needs via a single pipeline from Ukraine through Romania.
Source: econ.bg (16.03.2018)

Bulgaria signs deal for Balkan gas hub feasibility study - energy min Bulgarian gas transmission system operator Bulgartransgaz signed a 2.3 million levs ($1.4 million/1.2 million euro) contract for drafting a detailed feasibility study on the proposed Balkan gas hub project with a tie-up between Bulgaria’s EMG consult and Swiss-based AF consult, the energy ministry said on Thursday. The feasibility study aims to assess the commercial and technical viability of the project for construction of Balkan European gas distribution centre and define the business model for its implementation, the energy ministry said in a statement. The consortium must submit an interim report on its findings within 40 days, while the final report has to be completed within a 110 day-period. In December 2014, the Bulgarian government proposed to the European Commission to build an EU-funded regional gas hub near the Black Sea port of Varna to dispatch gas deliveries to the rest of Europe - to Greece, Romania, Hungary, Croatia, Slovenia and, via those countries, to EU member states in central and western Europe, as well as to non-EU Serbia, Macedonia, and Bosnia and Herzegovina. Gas can be fed into the hub from Russia, from Bulgaria's potential gas deposits in the Black Sea or, via interconnectors with Greece and Turkey, from the Caspian region or the Eastern Mediterranean, or from the Greek and Turkish LNG terminals, the government said at the time. The gas hub could also be supplied via an interconnector with Romania, which is estimated to have significant deposits in the Black Sea shelf. Bulgaria is heavily dependent on Russian gas supplies. The country imports almost all the gas it needs to cover its domestic needs via a single pipeline from Ukraine through Romania.
Source: Banker (16.03.2018)

ICGB pipe supply tender attracts ten bids Bulgaria's energy ministry said that a tender for the supply of pipes for the Gas Interconnector Greece-Bulgaria project has attracted ten offers. Bids were filed by Jindaw SAW Ltd, JSC Zagorsk Pipe Plant, Welspun Corp. Ltd, Salzgitter Mannesmann International GmbH, Noksel Celik Boru Sanayii A.S., Umran Celik Boru Sanayii A.S., Erciyas Celik Boru Sanayi A.S., Toplivo-2, Korinth Pipeworks S.A., Pipe Industry S.A. and Public Joint Stock Company Chelyabinsk Pipe Plant. This is the first of several key tenders, which will ensure the actual commencing of construction of the Gas Interconnector Greece-Bulgaria. The tender for the construction of the interconnector will be launched in April. In addition, tenders for supervision of construction works and for carrying out an archaeological study are due to be opened. The gas link is estimated to cost EUR 220 million. The project company has secured a sovereign guarantee of EUR 110 million under the annual state budget act, which could ensure loan financing under preferable conditions. The project is being implemented by the joint venture company ICGB, in which state-owned Bulgarian Energy Holding (BEH) and Greece-registered IGI Poseidon hold equal shares.
Source: actualno.com (19.03.2018)

Bulgaria's gas transmission system operator Bulgartransgaz to buy 28 properties owned by South Stream Bulgaria Bulgaria's gas transmission system operator Bulgartransgaz, a unit of state-owned Bulgarian Energy Holding (BEH), has accepted an offer to buy 28 properties owned by South Stream Bulgaria, a 50/50 joint venture set up by Russia's Gazprom and BEH. The properties have a total estimated value of BGN 13.1 million, excluding VAT. Bulgartransgaz will use the assets for the purposes of a project for an EU-funded regional gas hub near the Black Sea port of Varna. The hub is planned to dispatch gas deliveries to to Greece, Romania, Hungary, Croatia, Slovenia and, via those countries, to EU member states in central and western Europe, as well as to non-EU Serbia, Macedonia, and Bosnia and Herzegovina. South Stream Bulgaria was set up in relation to the now abandoned South Stream gas pipeline project. The South Stream gas pipeline was planned to carry gas from Russia to central and southern Europe. The onshore pipeline had to connect Varna, on the Black Sea, to northern Italy, via Bulgaria, Serbia, Hungary and Slovenia. Bulgaria is heavily dependent on Russian gas supplies. The country imports almost all the gas it needs to cover its domestic needs via a pipeline from Ukraine through Romania.
Source: Capital (22.03.2018)

Bulgartransgaz is exploring a new transit pipeline for BGN 2.8 billion Bulgaria may need to build a new transit pipeline from the Turkish to the Serbian border if it wants to continue to benefit from the transfer of natural gas. Studies show that consumption in the Western Balkans and Greece will double by 2035, with the main supplies coming from the Caspian region through Turkey and starting at the end of 2019. That is why Bulgartransgaz runs the so-called Open season procedure for development and expansion of the gas transmission infrastructure. As a second phase, until April 27, non-binding capacity offers will be collected for the new gas route between Bulgaria’s borders with Turkey and Serbia. The expected amount of the investment, according to the estimates of Bulgartransgaz, is up to BGN 2.8 billion, without VAT. The estimated operating costs are BGN 131.4 million per year. Unbound bids are also accepted for gas transit with Bulgaria-Turkey direction. Expectations are that they can happen after October 1, 2021.
Source: Capital (13.04.2018)

Bulgaria and Greece Discuss LNG Terminal, Gas Interconnector Bulgaria's participation in the construction of a liquefied natural gas (LNG) terminal in the Greek port of Alexandroupolis is of strategic importance for the diversification and security of energy supplies, Bulgarian Energy Minister Temenouzhka Petkova told Greek Environment and Energy Minister Giorgos Stathakis during a meeting in Sofia, as quoted by her ministry on Wednesday. The two discussed the state of play of the LNG terminal project and the building of the Gas Interconnector Greece-Bulgaria. Petkova updated Stathakis on the results of the working group which has been analyzing the possibility for Bulgaria's involvement in the LNG terminal project. The two ministers concurred that the Bulgarian participation is of key importance for the country and for Southeastern Europe. Petkova said: "The synergy between this project and the building of the Gas Interconnector Greece-Bulgaria will boost the security and the diversification of energy supplies." Petkova also briefed her guest on the progress made in the project for the Gas Interconnector Greece-Bulgaria. She assured him that her government has taken all necessary actions for the successful completion of the project within the established timeframe. The procedures for selecting a pipeline supplier and an engineering consultant for the gas interconnector are underway. In the first of these two procedures, there are 10 bidders based in various continents, which shows that businesses see the project as promising. The list of bidders admitted to the second stage of the procedure will become known by the end of April, and the contractor will be named in June. Both Bulgaria and Greece want construction to begin in June, so that the interconnector becomes operational in 2020, the Bulgarian Energy Ministry noted.
Source: Dnevnik (19.04.2018)

Key Procedure Starts Pertaining to Actual Start of Construction of Gas Interconnector with Greece ICGB AD, the project company developing the Gas Interconnector Greece-Bulgaria, has announced a public procurement procedure for the design, delivery and construction of the facility, the company said on Monday. The projected value of the public procurement is 145 million euro pre-VAT. The term is 18 month after the start of the construction works. The selection procedure is in two stages: preliminary selection, and assessment and ranking of the bids of the pre-selected candidates. In the preliminary selection ICGB will select the bidders having the requisite financial and technical capacity to carry out the works.
Source: 3e-news (02.05.2018)

TheBalkan Hub and 8 other sites are declared of national importance Nine key sites of Bulgartransgaz EAD, including the Balkan gas hub, were announced by the Council of Ministers as sites of national importance under the The Law on Spatial Planning and National Sites under the State Property Act. Apart from the hub in the decision, the extension of the gas transmission network in the section from the Bulgarian-Turkish border to the Strandzha compressor station has been added, an extension of the gas transmission infrastructure in parallel to several gas pipelines, as well. With the construction of the Balkan gas hub, the necessary gas transmission infrastructure will be created to connect the natural gas markets in the region with those in Central and Western Europe, as well as the countries of the Energy Community - Serbia, the Republic of Macedonia and Bosnia and Herzegovina. The project is included in the ten-year network development plan of ENTSOG. Transmission pipeline projects are funded under the Kozloduy International Fund administered by the European Bank for Reconstruction and Development. The implementation of all sites is included in the ten-year network development plan of Bulgartransgaz EAD for the period 2017-2026, approved by the Energy and Water Regulatory Commission on 1 August 2017.
Source: Dnevnik (10.05.2018)

Feasibility study for Bulgarian gas hub project favours new entry point from Turkey The interim results of a feasibility study on a proposed Balkan gas hub project in Bulgaria show that the preferred option envisages a new entry point from Turkey, Bulgaria's gas transmission system operator Bulgartransgaz said on Tuesday. The feasibility study advises for implementing the project in two stages – first, through a new entry point from Turkey, followed by a new entry point near Varna, on the Black Sea coast, where the hub will be situated, Bulgartransgaz said in a statement following a presentation of the interim results of the feasibility study before the European Commission. Experts are also looking into other entry points, including new or already existing infrastructure from Greece and Turkey, Bulgartransgaz added. The main gas sources that are being discussed include Russian gas, Azerbaijani gas via the TAP and TANAP pipelines and domestic gas supplies from the Black Sea. The European Commission continues to strongly support the project, Klaus-Dieter Borchardt, director at the European Commission's Directorate B on the Internal Energy Market, was quoted as saying. In March, Bulgartransgaz signed a 2.3 million levs ($1.4 million/1.2 million euro) contract for drafting a detailed feasibility study on the proposed Balkan gas hub project with a tie-up between Bulgaria’s EMG consult and Swiss-based AF consult. In December 2014, the Bulgarian government proposed to the European Commission to build an EU-funded regional gas hub near the Black Sea port of Varna to dispatch gas deliveries to the rest of Europe - to Greece, Romania, Hungary, Croatia, Slovenia and, via those countries, to EU member states in central and western Europe, as well as to non-EU Serbia, Macedonia, and Bosnia and Herzegovina. Bulgaria is heavily dependent on Russian gas supplies. The country imports almost all the gas required to cover its domestic needs from Russia via a single pipeline from Ukraine through Romania.
Source: Sega (13.06.2018)

BEH will issue Eurobonds The Bulgarian Energy Holding (BEH) started a series of meetings with international investors in connection with the planned issuance of Eurobonds worth EUR 500 mln. The series of meetings will begin in London and will continue in Frankfurt and Vienna. Following the successful conclusion of the negotiations, BEH will issue new 7-year and 10-year Eurobonds. BEH has hired Citigroup and First Financial Brokerage House to direct the forthcoming bond issue that is needed to refinance the company's 5-year Eurobond debt of EUR 500 million due in November this year. It will refinance the EUR 500 mln bond loan that the holding company issues in 2013 at a yield of 4.25%. BEH also sold a second bond issue two years ago worth EUR 550 million at a yield of 4.88%, maturing in 2021. The expectations are by refinancing the first BEH emission to save service fees. The holding plans to double listing of the new Eurobonds on both the Bulgarian and the Irish Stock Exchange. Through BEH the state owns the biggest energy companies in Bulgaria for production, supply and transmission of electricity, natural gas and lignite coal - Kozloduy NPP, Maritza East 2 TPP, NEK, ESO, Bulgargaz, Bulgartransgaz and Mini Maritsa East.
Source: Standart (18.06.2018)

Bulgaria-Turkey gas link looping to become operational on June 27 Bulgaria's energy ministry said on Tuesday that the 20 km looping of the gas link with Turkey, between compressor station Lozenets and pigging facility Nedyalsko, will become operational on June 27. The construction of the looping is aimed at increasing the security and capacity of the existing gas transmission infrastructure in Bulgaria, the ministry said in a statement. The construction of the looping will allow for reverse gas flow from Turkey to Bulgaria. The project will increase the capacity of the gas link to 15.7 billion cubic metres (bcm) per year from 14 bcm, Bulgaria's government said previously. Currently, Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: 24 chasa (20.06.2018)

Bulgartransgaz plans to invest 435 mln euro in infrastructure euro by 2027 Bulgaria's gas transmission system operator Bulgartransgaz intends to invest 850.6 million levs ($506.5 million/434.9 million euro) in the country's gas infrastructure by 2027, it said. The largest portion of the investment is planned to be spent on reconstruction, rehabilitation and capital repair of long-term assets, Bulgartransgaz said in its 10-year business plan published on the website of the Energy and Water Regulatory Commission (EWRC). In terms of investments in new infrastructure, the major projects include the gas interconnectors with neighbouring Serbia, Greece and Turkey, as well as the development of a gas hub on the territory of Bulgaria. The Balkan gas hub project envisages the construction of an EU-funded regional gas distribution centre near the Black Sea port of Varna to dispatch deliveries to the rest of Europe - to Greece, Romania, Hungary, Croatia, Slovenia and, via those countries, to EU member states in central and western Europe, as well as to non-EU Serbia, Macedonia, and Bosnia and Herzegovina. EWRC will discuss the investment plan of Bulgartransgaz on July 5.
Source: money.bg (03.07.2018)

The Bulgarian Energy Holding is on its way to take commitments in the BEH Gas case The Bulgarian Energy Holding is in the final stages of taking commitments regarding the BEH Gas case. To this end, the Parliament will instruct the Energy Minister Temenuja Petkova to take the necessary actions to reach an agreement with the European Commission’s case BEH gas. In order to do so, a project-decision will be introduced in the parliament by the members of the parliament of GERB Delyan Dobrev, Valentin Nikolov and Aleksander Nenkov. The project decision will be discussed in the Energy commission of the Parliament on Thursday. The case BEH Gas was initiated by the EC against BEH, Bulgartranzgas and Bulgargas because of suspicions of dominant position in the gas market in Bulgaria. In the arguments presented, the members of parliament point out that in the end of May, the EC reached an agreement with Gazprom in the case of abuse of dominant position in Central and Eastern Europe, without financial sanctions. According to the MPs, the development of the case against Gazprom is similar to the BEH Gas case, because of similar legal classifications of the violations and overlapping market participants who are involved in the cases. Therefore, they believe that there are new circumstances that require the amendment of the previous decision of the National Assembly without its repeal. The previous decision of the Parliament regarding the gas case was taken at the end of November 2017. With it the National Parliament supported the closing of the BEH Gas case without acknowledging any wrongdoing and without assuming responsibility and at the same time committing to uphold any obligations arising from a prohibitive decision, even including commitments regarding any financial sanctions that may arise. This decision was taken after the European Commission rejected on 9 November the commitments made by the Bulgarian side and it became clear that it intends to close the BEH Gas case with a restrictive decision and a financial sanction. / publics.bg
Source: Other (19.07.2018)

Bulgaria will seek an agreement with the EC in the case against the energy holding Bulgaria will seek an agreement with the European Commission on Bulgargaz, Bulgartransgaz and Bulgarian Energy Holding (BEH) case, although at the end of last year the National Assembly banned such actions. GERB deputies Delyan Dobrev, Valentin Nikolov and Alexander Nenkov have submitted to Parliament's cabinet a draft decision, which instructs the Minister of Energy Temenuzhka Petkova to try to reduce the sanction, which may be over EUR 300 million. The European Commission has launched criminal proceedings against Bulgaria after the private company Overgas filed a complaint in 2010 that state-owned companies, which have a monopoly over pipes, have restricted its access to gas infrastructure and the gas market. In 2015, the investigation concluded that there were violations, and Bulgaria was offered to present a plan for their termination under threat of sanctions. The European Commission was willing to reduce the fine significantly if certain measures were implemented. One of them is the recognition of guilt, which would reduce the sanction to EUR 70 million. Another measure was for the state to privatize a majority stake in Bulgartransgaz.
Source: expert.bg (20.07.2018)

Gas transmission and storage operator Bulgartransgaz had an operating profit of BGN 43.9 million in the first half of 2018, according to a report published by the Finance Ministry. Its revenues stood at BGN 185.6 million. The receipts totalled BGN 99.7 million from transit of natural gas; 43.9 million from transmission via the national gas network; 6.8 million from balancing; and 1.1 million from storage of natural gas. The operating revenue is formed mostly by transmission of natural gas in Bulgaria, transit from the border with Romania to the borders of Greece, Turkey and Macedonia (transit according to an agreement with Gazprom Export - Russia), gas storage in the Chiren facility and balancing of the gas market. The total assets of Bulgartransgaz stood at BGN 2,384,678,000, the own capital at BGN 2,128,372,000 and the liabilities at BGN 256,306,000.
Source: Banker (03.08.2018)

State-owned companies in the energy sector are indebted to BEH State energy companies are increasingly indebted to their parent company - the Bulgarian Energy Holding. This shows the financial statements of the companies for the first six months of the year. For the period January - July BEH's receivables from its subsidiaries increased by BGN 293 million to BGN 3.07 billion. The largest energy company in Bulgaria continues to finance the companies in its group, which are in severe financial condition. Among the most indebted companies is the public electricity supplier - NEK. The uncovered loss of the company's past years towards the end of the last six months reached already BGN 1.18 billion. The overdue payables of the company for the same period are BGN 360 million. Thus, the company, which redistributes electricity in the country, ends the half-year with a loss of BGN 75 million. According to the financial statement, without the support of BEH, there are serious doubts that NEK can continue to operate. Loss for the first six months of the year is also reported by the state-owned Maritza East 2 TPP and the mining company Maritsa East. The Bulgarian Energy Holding receives funds from its profitable companies, which then redistributes to the losing ones. Traditionally, the profitable companies in the first half of 2018 are the Kozloduy NPP, the gas carrier Bulgartransgaz, the owner of the ESO transmission grids.
Source: econ.bg (08.08.2018)

Natgas Prices to Rise as from October 1 The price of natural gas will definitely increase, effective October 1, because the international market price of crude oil and the dollar exchange rate are rising, Bulgaria's Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov told journalists on Thursday. He declined to comment on the exact amount of the hike. "The Commission has very little manoeuvring room. We must above all check the method of calculations and determine whether the price asked by Bulgargaz is consistent with their natural gas supply contract with Gazpromexport," Ivanov said. He expects to receive Bulgargaz's final price application on September 10. The gas company now forecasts a 15 per cent increase of natural gas prices for the last quarter. The EWRC Chairman explained that the Commission will reckon with the application, but its experts will carefully analyze and check it and by the end of September the regulator will pronounce on the natural gas price as from October 1. Ivanov pointed out that if the price of heat will have to be increased, this will happen at the start of the next heating season. He said that the EWRC has numerous instruments to impact the price of electricity, but it can do little about the price of natural gas, which in turn influences the price of heat. Later on Thursday, the EWRC discussed an August 2 application by Bulgartransgaz for an increase of the cost component of the natural gas price for the period between October 1, 2018 and April 14, 2019 from 0.78 leva/MWh to 1.52 leva/MWh. The gas-transit and gas-transmission network operator also proposed a reduction of the 8 per cent adjustment for the 2018/2019 gas year so as to ease the financial burden on gas-transmission system operators. Danail Dikov of Bulgartransgaz explained that the increase of the cost component was due mainly to a discrepancy in the forecast imbalances. He said that this is not supposed to lead to a shock rise in the price. During the public discussion, most of the industrial uses of gas transmission networks opposed the proposed increase. EWRC Chairman Ivan Ivanov asked everybody to set forth their arguments in writing, so that the Commission experts can take them into account. The EWRC will adopt its decisions at a meeting behind closed doors on September 14.
Source: Capital (24.08.2018)

NEC has received a subsidy of BGN 505 million as a public supplier in 2017 The National Electricity Company (NEC) received last year nearly BGN 505 million from the State Energy Security Fund (SESF) to cover its costs stemming from its obligation as a public supplier to buy at preferential prices energy produced by renewable energy sources, cogeneration and the so-called ‘American coal-fired power plants’. This was stated by the fund’s report for 2017 approved by the government at its meeting, which in 2017 saw nearly BGN 236 million in the SESF, collected from the 5% installments made by the producers and importers of electricity in Bulgaria from their monthly revenues, as well as Bulgartransgaz and Electricity System Operator. Last year the sold state-owned greenhouse gas emissions amounted to BGN 254.5 million in the fund. Total revenues amounted to BGN 490.3 million, but there were funds left from 2016, so the sums were transferred to NEK. Fund maintenance costs in 2017 amounted to BGN 193,000, according to the report, which was audited by the National Audit Office.
Source: mediapool.bg (05.09.2018)

Bulgaria's TPP Maritsa Iztok 2 to pay 153 mln euro for emission allowances by Mar 2019 Bulgarian state-owned thermal power plant (TPP) Maritsa Iztok 2 will have to pay over 300 million levs ($177.5 million/153.4 million euro) by March 2019 for buying emission allowances, energy minister Temenuzhka Petkova said on Tuesday. A working group within the energy ministry has drafted short and long term measures for strenghtening the financial state of the plant, Petkova said in a statement on Tuesday. The greenhouse gas emission allowances are part of the EU Emissions Trading System, which works on the “cap and trade” principle. Within the cap, companies receive or buy emission allowances which they can trade among themselves as needed. Each year companies must surrender enough allowances to cover all their emissions, otherwise fines are imposed. In the first half of the year, the plant booked 115 million levs in expenses for greenhouse gas emission allowances, according to its interim financial statement. Maritsa Iztok 2 has eight operating units with a total installed capacity of 1,620 MW.
Source: mediapool.bg (17.10.2018)

A gas trading platform is being developed Bulgaria will build its own natural gas trading platform. This was made clear by the updated Energy Strategy of the country approved by the Council for Energy Security with the Council of Ministers. The updated strategy does not mention when exactly there will be a natural gas exchange platform, but it will probably follow after the Balkan gas hub has been created. Experts expect a change in the direction of gas transit from North-South to the South-North after 2020, as well as a potential reduction in the quantities transited through our country, which means that Bulgaria is preparing to stop or abruptly reduce supplies of fuel through Ukraine. Such a move will also reduce the main revenues of the state-owned company Bulgartransgaz. The region is about to build key infrastructure projects that will change the direction and routes of natural gas flows. These include the Turkish stream, the South Gas Corridor projects, the Trans-Anatolian gas pipeline, the Trans-Adriatic gas pipeline, the Greece-Bulgaria interconnector, and the project for a new liquefied gas terminal in Alexandroupolis.
Source: Banker (05.11.2018)

The infrastructure of the Balkan gas hub will cost BGN 2.8 billion Around BGN 2.8 billion will cost the construction of the infrastructure for the Balkan gas hub near Varna. The assessment was made on the basis of the feasibility study for the gas distribution center. The sum was commented at a meeting at the Ministry of Economy on the change of the country's energy strategy. The document needs to be revised to include new energy projects such as the Balkan hub, which were not on the agenda when the strategy was adopted in 2011. The construction of the hub will also include a subsidiary of the Bulgartransgaz , which will operate a trading platform for trading of natural gas.
Source: econ.bg (14.11.2018)

Iran Favours Construction of Balkan Gas Hub in Bulgaria Iran is in favour of the concept for building a Balkan Gas Hub at the Bulgarian seaport of Varna, the Energy Ministry in Sofia reported on Tuesday. The matter figured high on the agenda of talks between Energy Minister Temenouzhka Petkova and Iranian Ambassador to Bulgaria Seyed Mohammad Javad Rasouli. Minister Petkova presented to her guest the concept developed jointly with the European Commission and stressed that the project received the Commission's support as important for energy security and trade liberalization in the whole region of Southeastern Europe. Up to now, a feasibility study has been carried out for the gas distribution center, which examines several sources of natural gas deliveries from Russia, the Caspian region through the interconnector with Greece, Romania, as well as possible local extraction from the deep Black Sea, where at present studies are being carried out. Natural gas supplies from Iran, one of the world's leading manufacturers, would be another possible source of power for the Hub.
Source: Standart (14.11.2018)

Gazprom is considering a way to continue the Turkish Stream through Bulgaria Russian gas giant Gazprom is considering possible options for the continuation of the Turkish Stream project across Bulgaria, Russian Foreign Minister Sergei Lavrov said. "Various opportunities are currently being developed for the continuation of the pipeline on European territory, including on the route Bulgaria-Serbia-Hungary, with the exit of the gas distribution center in Baumgarten, Austria," the minister said, while pointing out that Moscow also reports the sad lessons from the fate of South Stream and Russia will be ready to take concrete action only after explicit guarantees have been received from the relevant EU structures. In December 2014, Russia announced the termination of the South Stream project, pointing out the unconstructive position of the EU as a reason: the pipeline had to pass through the territory of Bulgaria, Serbia and Hungary, and Lavrov also said Moscow was satisfied with the course of the Turkish Stream construction in the two-line option. The project envisages the construction of a gas pipeline consisting of two lines with a capacity of 15.75 billion cubic meters each. The first line is intended for the supply of gas to Turkish consumers, and the second is for the supply of gas to southern and south-eastern Europe. The first line must be completed in 2019 and then gas supplies to Turkey will start.
Source: investor.bg (19.11.2018)

Bulgaria to take stake in proposed Alexandroupolis LNG terminal - Energy Minister Bulgaria's efforts to diversify its sources of natural gas deliveries includes plans to take a minority stake in the proposed liquefied natural gas (LNG) terminal near Alexandroupolis, in northern Greece, Bulgarian Energy Minister Temenouzhka Petkova said. Petkova exolained that LNG offered the opportunity of further diversification of sources, on top of the one billion cubic metres of gas from Azerbaijan, for which Bulgaria already signed a contract several years ago. "When we talk about the Greece-Bulgaria [gas] inter-connector, we must note the importance of another opportunity for diversification of gas deliveries and that is our participation in the Alexandroupolis terminal," Petkova said. "It is a project of extreme importance to the entire region. It is in full synergy with the Greece-Bulgaria inter-connector and that is why the Bulgarian Government discussed the prospect and took the decision to participate in this project as a shareholder, so that we have the opportunity for gas deliveries from various LNG sources, including the US, Qatar and Algeria," she said. The current plans envision Bulgaria's state-owned gas grid operator becoming a minority shareholder in the Alexandroupolis terminal, although Petkova did not mention how large a stake it might take.
Source: Sega (27.11.2018)

BGN 4.4 billion profit if Turkish Stream goes through Bulgaria More than USD 2.8 billion will be neccessary to build an infrastructure to match the new gas flows in the region. This was announced by the Bulgarian Minister of Energy Temenujka Petkova to the competent parliamentary committee. The major part of the investment will be for new 484 km of pipes from Provadia to Zajecar in Serbia and for two new compressor stations and 11.5 km pipeline from the Bulgarian-Turkish border to Strandzha station. The change in the energy strategy is due to Gazprom indications that, after the start of the second Turkish flow pipeline, the transit from Ukraine will stop, which also means through Bulgaria to Turkey. The plan provides for the new pipes to transport gas from three sources after 2020, as required by the EC. Petkova also announced that by the end of this year Bulgartransgaz will launch an electronic exchange for trade in natural gas. Two market tests have shown that there is interest in the new infrastructure. Bulgartransgaz is preparing a third market test with binding offers for the capacity to transfer gas from the Turkish border to the Serbian. She also said that if the steps in the updated energy strategy are followed, the state-owned company will report a profit of BGN 4.4 billion and four times less if the amendments are not accepted.
Source: 24 chasa (28.11.2018)

TurkStream Pipeline Through Bulgaria will be Delayed For at Least a Year The continuation of the TurkStream pipeline in Europe will be ready for at least a year's delay, Russian Interfax news agency reported. The reason is the delay in the construction of the respective gas transport infrastructure in Central and Eastern Europe. The Serbian and Bulgarian sections of the Turkish Stream extension will be ready not earlier than the end of 2020 and will be able to work in January 2021 respectively. At the same time, both lines of the Turkish gas pipeline "TurkStream" could work at the end of 2019, which would force Gazprom to wait.
Source: Standart (30.11.2018)

Bulgaria pipeline to face EU scrutiny Bulgaria is to face renewed EU scrutiny over a Russia gas pipeline, four years after its previous project failed. The European Commission would "not support it" if the pipeline did not meet conditions, Maros Sefcovic, the commission vice-president, who is in charge of EU energy policy, has said. The commission would "react within its remits" if Bulgaria harmed EU energy security, he added in remarks to EUobserver on Tuesday (11 December). Bulgaria's 484-km pipeline is to ship Russian gas to Europe by linking with Russia's new pipeline to Turkey, called Turk Stream 2. Sefcovic's warning comes amid Russia's plan to also build a pipeline to Germany, called Nord Stream 2. Its Germany and Turkey pipes go around countries such as Poland and Ukraine. This makes the region, which used to be under Russia's boot, feel less safe by enabling Moscow to cut supplies there while keeping Russian gas flowing to western Europe. And Russian revanchism is stoking those fears, amid military provocations and aggression in the Baltic Sea and Black Sea regions. "Nord Stream 2 and an expanded Turkish Stream pipeline seek to deepen [EU] dependence [on Russia]," a US diplomat, Francis Fannon, said also on Tuesday. "They are political tools ... and the Russian state uses energy for coercive political aims," the diplomat said. Deja vu? Bulgaria's previous project, the more ambitious South Stream pipeline, was to ship gas directly from Russia via the Black Sea. But Moscow abandoned it in 2014 when the EU commission said it violated single market laws. Sofia, where MPs recently approved the Turk Stream 2-link project, has yet to give Sefcovic details of its plan. Its energy and foreign ministries also declined to speak to EUobserver. If Bulgaria's link pipeline was to sell Russian gas to the EU in a new trading hub with other international gas, then it was "a welcomed development," Sefcovic said. But if it simply "evacuated" Turk Stream 2 gas to EU states, such as Austria or Italy, then it was not. "If it turns out the project is a simple transit pipeline, it cannot be part of the Balkan Gas Hub project and the commission will not support it," Sefcovic told this website. "In such a scenario, Turk Stream 2 and its evacuation pipeline would clearly be in competition with other sources and routes of gas coming to the region," he said. Balkan hub The commission earlier financed a feasibility study into the Balkan Gas Hub idea. The hub, in Varna, on Bulgaria's Black Sea coast, could trade gas from Turk Stream 2, as well as EU-backed pipelines to Azerbaijan and Israel - the Southern Gas Corridor and EastMed. It could also trade liquid gas from global markets, in what would create "more diversified, secure supply" for Europe, Sefcovic said. "The commission could only support a scenario under which this [Turk Stream 2] gas is sold at the Balkan Gas Hub ... not simply transported via transit pipelines to western European hubs," he noted. "Once it becomes clear how the [Turk Stream 2] evacuation will be organised, the commission will react within its remits," he said. Sefcovic's remit Bulgaria, the EU's poorest country, would get no European money for the ˆ1.4bn link pipeline if it did not meet conditions, Sefcovic added. It would also receive no EU "regulatory support". "The commission does not see any difference between Turk Stream 2 and its transit evacuation pipelines or Nord Stream 2 and its Eugal onshore connection," Sefcovic said. Eugal is a 480-km German pipeline to link Nord Stream 2 to central Europe, which failed conditions for EU support. The new Russian pipelines are to start supplies in 2020. The commission has a quiver of energy and public procurement laws to fire at onshore EU links. It has also tried to have its say on Nord Stream 2, but its legal remit on Russia's offshore pipelines is in doubt, amid sluggish talks on the subject in the EU Council, where member states meet. US sanctions For its part, the US has threatened fines against EU energy firms who backed Nord Stream 2. It turned up the heat on that and Turk Stream 2 when Fannon, a US energy envoy, spoke to international media in a conference call. "We've made quite clear where we stand on that," he said on the Nord Stream 2 sanctions threat. "We oppose Nord Stream 2 and we would call on all parties to exit the project," he said. "Given Russia's aggression in recent days, this is a good time to spotlight our diplomacy on transatlantic energy security," Fannon added. Russian aggression He spoke after visiting Croatia, the Czech Republic, and Hungary and shortly after Russian warships fired on the Ukrainian navy in the Black Sea area. The Russian pipelines would see Ukraine lose most of its gas transit to the EU, costing it billions, and new suppliers, like Israel, would be locked out of Europe in what was "just an order of math" on supply and demand, Fannon said. "The US and Europe share Western values," but that kind of commerce was "just not consistent with those shared values," the American diplomat said.
Source: money.bg (13.12.2018)

EC Fines Bulgarian Energy Holding Group EUR 77 Mln for Blocking Access to Key Natural Gas Infrastructure The European Commission (EC) Monday said that it has fined the Bulgarian Energy Holding, its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz (the BEH group) 77,068,000 euro for blocking competitors' access to key gas infrastructure in Bulgaria, in breach of EU antitrust rules. The EC press release quotes European Commissioner for Competition Margrethe Vestager as saying on Monday that consumers in all Member States should enjoy the benefits of an integrated and competitive single European energy market. "For years, Bulgarian natural gas consumers have been denied a choice of suppliers because the BEH group refused to give access to its gas infrastructure to other wholesale gas suppliers. With today's decision, we will promote the development of an open and competitive energy market to the benefit of consumers in Bulgaria, in line with Energy Union objectives," she said. BEH is the vertically integrated incumbent state-owned energy company in Bulgaria. One subsidiary, Bulgartransagaz, controls the gas infrastructure in Bulgaria. Another subsidiary, Bulgargaz, supplies gas to customers in Bulgaria, the press release reads. Monday's decision of the EC finds that the BEH group holds dominant positions both in the gas infrastructure markets and in the gas supply markets in Bulgaria. It also finds that the Bulgarian Energy Holding and its subsidiaries abused their dominant positions by foreclosing entry into the gas supply markets in Bulgaria by unduly restricting access to the infrastructure BEH owned and operated. BEH used the dominant position of one subsidiary, Bulgartransgaz, to protect the near monopolistic position of its other subsidiary, Bulgargaz, on supplying gas. In addition, Bulgargaz hoarded capacity on the only import pipeline bringing gas through Romania to Bulgaria so that it could not be used by potential competitors. Between 2010 and 2015, the BEH group blocked the access to Bulgaria's domestic gas transmission network, the only gas storage facility in Bulgaria, and the only import pipeline bringing gas into Bulgaria, which was fully booked by BEH. Without access to this essential infrastructure, it was impossible for potential competitors to enter wholesale gas supply markets in Bulgaria. This prevented any development of competition and ensured a near monopoly for Bulgargaz. The EC concluded that this behaviour by the BEH group is in breach of Article 102 of the Treaty on the Functioning of the European Union, which prohibits the abuse of a dominant market position. As a result, the EC decided to impose a fine on the company. BEH, Bulgargaz and Bulgartransgaz are jointly and severally liable for the payment of the fine, the level of which was determined on the basis of the EC's 2006 Guidelines on Fines and by taking into account the company's relevant sales in Bulgaria, the serious nature of the infringement and its duration. Monday's decision is another example of how enforcement of EU competition rules complements legislative action to ensure open and competitive gas markets in the EU, in line with the Energy Union objectives. In particular, the EC has the objective of improving competition and the level of security of supply in Southeast European gas markets, including in Bulgaria, the press release reads. According to the EC, the removal of barriers to entry for competitors will allow the Bulgarian wholesale gas market to function more efficiently, with more buyers and sellers, and give Bulgarian consumers better prices and a choice of gas suppliers. This will be further facilitated by the recent opening of the Greece-Bulgaria gas interconnector, for which the EC approved public support on November 8, 2018, and by the Bulgaria-Romania-Hungary-Austria energy cooperation project, which will enable Bulgarian wholesalers to diversify their supply sources. The EC opened a formal investigation into BEH group's behaviour on July 4, 2013, following an inspection carried out at BEH group's premises in September 2011.
Source: Capital (18.12.2018)