site.btaBulgargaz Proposes Nearly 8% Natgas Price Increase in December

Bulgargaz proposes a 7.9% increase in the price of natural gas for December, according to a company statement on the website of the Energy and Water Regulatory Commission (EWRC). Bulgargaz calculations show that from the beginning of December the price of natural gas, excluding the prices for access, transmission, excise duty and VAT, should be BGN 88.61 per MWh.

The EWRC approved the natural gas price for November at BGN 82.12 per MWh, or nearly 36% higher month on month.

Bulgargaz said that in December there will be supplies from three sources - Azerbaijan under long-term contract, and liquefied natural gas from Greek traders DEPA and Mytilineos. In addition, natural gas production from the underground gas storage facility near Chiren is foreseen.

For December, the estimated costs for access and transmission through the Bulgaria-Greece interconnector total BGN 2.83 million for the natural gas volumes under the contract with the Azerbaijani company, which are included in the pricing, Bulgargaz added.

The supply of liquefied natural gas from Mytilineos was agreed after participation in tenders for capacity allocation in 2022, the public supplier said. The Greek company has offered to manage the LNG supply on behalf and at the expense of Bulgargaz, providing an equivalent amount on a daily basis, delivered to the terminal in Revithoussa.

A slot at the terminal in Greece has been secured for the quantities of LNG from DEPA. The exact value and quantities are not specified in the statement.

At the end of November the EWRC is due to hold an open meeting to discuss the proposal. Bulgargaz's final statement and the EWRC's decision on the December gas price will be known on December 1.