site.btaOne-off Advance Payment by Gazprom to Allow Bulgartransgaz to Save Lv 106 Mln

NW 16:24:01 27-07-2021
DS1627NW.115
115 ECONOMY - BULGARTRANSGAZ - GAZPROM - ADVANCE PAYMENT

One-off Advance
Payment by Gazprom to Allow
Bulgartransgaz to Save Lv 106 Mln


Sofia, July 27 (BTA) - Russia's Gazprom Export has declared its intention and readiness to make a one-off advance payment to Bulgartransgaz EAD to the amount due for long-term capacity booked under their contract for the July 1, 2021-June 30, 2023 booking period, Bulgaria's gas transmission system operator said Tuesday. This payment will allow Bulgartransgaz to pay some of its debts in advance, thus saving a total of 106 million leva.

The news comes after Bulgartransgaz' announcement of June 17 that all its gas transmission system users who have booked long-term capacity and who intend to book capacity products within the envisaged auction on July 5, 2021 in line with ENTSOG calendar for allocation of yearly capacity products, including those who have booked capacity under long-term contracts with fixed prices, have the option of a one-off advance payment to the amount of the booked long-term capacity, discounted by 2.7 per cent on an annual basis, when booking for at least one year.

The sum that Gazprom owes for the booking period in question amounts to 704,477,888.26 leva (VAT-exclusive). With the 2.7 per cent discount, that makes a one-off advance payment to Bulgartransgaz of 683,302,760.39 leva (VAT-exclusive). The payment will be made after the sides sign an additional agreement for a one-off payment to their Contract for Access and Transport.

Bulgartransgaz plans to use Gazprom's advance payment to partially cover its debts to Arkad Consortium, the main contractor under the project for the expansion of Bulgartransgaz' gas transmission infrastructure parallel to the northern (highway) gas pipeline to the Bulgarian-Serbian border. Following a proposal by Arkad Consortium, Bulgartransgaz will make an advance payment to the amount of 461,096,701.65 leva, saving 94,963,375.80 leva in the process.

Bulgartransgaz also plans to return in advance 65 million euro to commercial banks, thus saving a total of 11,662,232.90 leva from interest rates, as well as to return the securities provided to the amount of 24,142,912.00 leva.

What remains of Gazprom's advance payment will be used for future operational, investment and financial expenditures of Bulgartransgaz, the Bulgarian company said.

NV/DS


/ДЛ/



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