site.btaNatural Gas Price Decreases in Bulgaria by Nearly 57% Y/Y

The Energy and Water Regulatory Commission (EWRC) confirmed on Monday the price of natural gas at BGN 77.60 per megawatt hour (MWh), excluding access, transmission, excise and VAT prices.

A year earlier, on January 1, 2023, the EWRC approved a natural gas price of BGN 179.33/MWh (excluding prices for access, transmission, excise and VAT). This means that during this period the price of blue fuel decreased by 56.73%.

This is how the price of natural gas in Bulgaria, sold by Bulgargaz, changed in 2023:

On January 1, 2023, the EWRC approved a natural gas price of 179.33/MWh, excluding access, transmission, excise and VAT prices. At the time, the regulator explained that the price mix included the entire agreed quantity of Azeri natural gas delivered via the Bulgaria-Greece IGB interconnector at prices according to the current long-term contract with Azerbaijan. At that time, these quantities covered about 27% of the country's consumption and were of key importance in achieving favorable prices for blue fuel. After organizing a tender procedure for the whole of 2023, Bulgargaz concluded three contracts for the supply of liquefied natural gas (LNG) with traders from the region for January. The price mix for the month supplier also included quantities of natural gas from the Chiren underground gas storage facility.

On February 1, , the EWRC confirmed s price of natural gas for February in the amount of 124.34 per MWh. The established price was 31% lower than that of January. The regulator explained that the main factor for this was an international gas market stock decrease as a result of the mild weather and the high capacity of the European gas storages. The decrease in stock exchange quotations then made it possible for the public supplier to virtually pump natural gas into the Chiren storage facility at significantly lower prices, which optimized the price levels of the stored quantities. As a result, the price of blue fuel from Chiren, which is a pricing element in the overall mix, was reduced and a reduction in the final price for February was achieved.

On March 1, the EWRC confirmed the price of natural gas for March at BGN 106.74 per MWh. The established price was more than 14% lower than the February price, due to the same processes observed in February.

Similarly, the EWRC approved the price of natural gas for April of BGN 98.16 per megawatt hour, excluding prices for access, transmission, excise duty and VAT. The established price was 8% lower than that of March. The decrease in the price of natural gas is a favorable factor for all consumers and may create conditions for maintaining the price of thermal energy from July 1, the EWRC indicated.

On May 1, the EWRC  approved a natural gas price of BGN 77.55/MWh, excluding access, transmission, excise and VAT prices. The approved price was 21% lower than that of April. The main factor was the sustained tendency of international gas markets stock decrease and the lower consumption, the regulator explained.

The EWRC approved a price of natural gas for June of BGN 65.82/MWh, This price was 15.20% lower than that of May. The regulator found at the time that the total estimated quantity for the domestic market was provided by two different sources of supply. The price mix for June included the entire agreed quantity of Azeri natural gas delivered via the IGB interconnector, according to the current long-term contract with Azerbaijan. These quantities covered 70.3% of the consumption for the month and were of key importance in achieving favorable prices for  blue fuel. After organizing a tender procedure, Bulgargaz concluded a contract for the supply of liquefied natural gas with a trader from the region for June. 

On July 1, the EWRC confirmed a price of natural gas for July at BGN 60.58 per MWh, without prices for access, transmission, excise duty and VAT. This price was 8% lower than the June price. During an open meeting on the topic, held on June 28, EWRC  Chair Ivan Ivanov said that this shows the usefulness of the treaty that Bulgaria has with Azerbaijan. "This literally serves as an anchor for the price, as it does not depend on the Title Transfer Facility [TTF Netherland Gas Hub]," Ivanov said at the time.

In August, the price of natural gas was set at BGN 59.67/MWh, excluding access, transmission, excise and VAT prices. It was 1.4% lower than the July price. 
In September, however, Kthe EWRC approved a natural gas price about 6% higher compared to August, BGN 63.35/MWh. The regulator pointed out that the higher price was due to a significant increase in the TTF  month ahead stock index, up by 19% from August. 

In October, the price decreased by 4.6% compared to the previous month, to 60.41/MWh. Bulgargaz signed two contracts for the supply of liquefied natural gas (LNG) with traders from the region for October, after a tender procedure, with requirements for a minimum delivery price and a proposed method of payment.

The EWRC confirmed a price of natural gas for November at BGN 82.12/MWh, nearly 36% higher than the October price. At that time, the total estimated quantity for the domestic market was provided by four different sources of supply. The price mix for November included the entire agreed amount of Azeri natural gas delivered via the IGB interconnector from Azerbaijan. These quantities covered 35.64% of consumption for the month and were key to achieving favorable prices for blue fuel. The EWRC added that Bulgargaz had concluded three contracts for the supply of liquefied natural gas with traders from the region for November, after a tender procedure, with requirements for a minimum delivery price and a proposed method of payment. The secured quantities covered the commitments of the public supplier for November to final suppliers and heating companies, as well as the quantities under bilateral contracts with industrial customers, the regulator explained at the time.

The EWRC set a natural gas price for December of BGN 87.50/MWh, excluding access, transmission, excise and VAT prices. This price was an increase on 6.5% month-on-month. Bulgargaz signed two contracts for the supply of liquefied natural gas (LNG) with traders from the region, after a tender procedure. In the price mix for the month, the public supplier also included quantities of natural gas from the Chiren storage facility. 

On the last working day for 2023, December 29, Bulgargaz expected the final proposed price of natural gas for January to be about 11% lower than the current one in December. Bulgargaz Commercial Services Director Veselin Sinabov stated at the open meeting of the Commission for Energy and Water Regulation that the price in January is expected to be slightly below BGN 78/MWh. EWRC Chair Ivan Ivanov noted tgat in a  winter period, when it is normal for the price of natural gas to increase, this year it is decreasing. Among the reasons, he pointed to the relatively mild weather, but also to the filled gas storage throughout Europe. The gas storage in Chiren is filled with a little less than 90% of gas, enough to pass the autumn-winter season without problems. "For these two reasons, the price of natural gas on the international exchanges is actually decreasing," explained Ivanov. He clarified that except for the supplies of natural gas from Azerbaijan and those from the underground gas storage in Chiren, the rest are directly related to the price of natural gas in the month ahead index of the Dutch stock exchange. "Ther eduction of prices there leads to a reduction of prices in our country as well," said Ivanov.