site.btaEconomy Minister Shtonov: To Date Gas Supplies to Bulgaria Still Limited

Economy Minister Shtonov: To Date Gas Supplies to Bulgaria Still
Limited


Sofia, November 6 (BTA) - To date, natural gas supplies by the
main pipeline to Bulgaria are still limited, but are compensated
from the gas storage facility in Chiren, caretaker government
Minister of Economy and Energy, Vassil Shtonov, said during
Question Time in Parliament Thursday. The explanation for the
reduced deliveries is a technical problem, which may be true,
but the problems with Ukraine may also be the reason, he added.

Reduced natural gas supplies

Reduced supply of natural gas was registered on October 10,
2014. In the last two weeks, the pressure in the main pipeline
bringing gas to Bulgaria was between 30 and 35 bars, compared to
the normal 42 bars, Shtonov said. Security systems begin to be
activated if pressure falls below 26 bars. If there is a more
tangible reduction of pressure, the thermal power plants will
switch to fuel oil. This has been organized, the required
quantities have been supplied and transport has been organized
in case of such a variant, he informed.

The reduced deliveries are currently being compensated from the
gas storage facility in Chiren which now holds 471 million cu m
of gas, Shtonov said. Not more than 3.5 to 4 million cu m of gas
can be withdrawn from the facility in a day, with between 1 and
2 million cu m being withdrawn now.

Shtonov pointed out there is also an option for reverse gas flow
from Greece to Bulgaria, which can only operate in a mode of
crisis. However, not more than 10-20 per cent of the expected
consumption in the winter could be received from Greece.

Funds blocked in Corpbank will not lead to raised electricity
price

The funds of state energy companies which are blocked in the
troubled Corporate Commercial Bank (Corpbank) cannot lead to a
rise of electric power prices, Shtonov said further.

The National Electric Company (NEK) has 14 million leva in
Corpbank, but this is a small part of the funds which pass
through the company in a year. Because of the difference in the
prices at which the company buys energy from the producers and
sells to end-users, there was a deficit of some 900 million leva
before the last price hike on October 1, Shtonov said. The
increase of the prices covered 200 million leva and the
remaining deficit should be compensated through reforms in the
energy sector, he noted.

Taking a question whether an option for cession of the state
energy company funds at Corpbank is being sought, Shtonov
answered in the affirmative.

Resolution on Belene N-plant arbitration case is not expected
before September 2015

The arbitration case with counterclaims between NEK and Russian
Atomstroyexport concerning the Belene N-plant project is at an
advanced stage, but the court will not come out with a judgment
before September 2015, Shtonov said in response to an MP
question.

Atomstroyexport claims it should receive slightly less than
1,000 million euro in payment for preliminary activities and
other items. NEK, in turn, has filed claims for over 100 million
euro, the minister said.

Considering how complicated the case is and the volume of
evidence it involves, the judgment could even be announced in
the beginning of 2016, Shtonov forecast.