29% gas price reduction for November proposed by public supplier Bulgargaz

Bulgaria’s public supplier "Bulgargaz” proposes a gas price for November of BGN 166.14 per megawatt-hour, which is a decrease of almost 29% from the current price, the company announced. The price is almost twice lower than that of European gas hubs.

There are two main reasons - on the one hand, the new Bulgarian-Greek connection was launched on October 1, from which Bulgaria receives Azeri gas. The other reason is that the state-owned company “Bulgargaz” has managed to negotiate cheaper liquefied natural gas for November. Earlier today, energy regulator chairman Ivan Ivanov predicted the reduction and added that he expects this trend to continue until the end of the year. This will allow the price of heating and hot water not to be increased again from 1 January.

The Energy and Water Regulatory Commission (EWRC) expects the proposed reduction to be up-to-date at the beginning of November, when a final decision will be taken.

"The price just a month ago was 353 BGN per megawatt-hour. From this amount, a decrease below BGN 180 is roughly a price of 50% of what it was and I hope that if this price is maintained and even further decreased in December, we will not increase the price of heat energy," said EWRC Chairman Ivan Ivanov.

70% of the heating price is formed by the price of natural gas. Over the past year and a half, natural gas price has risen more than 13 times, with an absolute peak in September at 354 BGN per megawatt-hour. In Europe, however, the price went down.

"Attempts to increase the price and threaten Europe's supply by reducing volumes and stopping supplies are failing," Ivanov said.

Bulgaria is also making progress in stockpiling natural gas for the winter.

"I believe that by the end of October our gas storage facility in Chiren will be filled up to 85%, and maybe even up to 90%," the regulator's chairman said.

Ivan Ivanov expects the gas price to keep same levels after January 1 because we will reserve capacity to move natural gas through Greece as well.

"I am optimistic because after January 1 we will also purchase the slot at Revitus, where the tanker we have purchased will pass," he explained.

Meanwhile, the operator of the gas link with Greece said that 30 million cubic metres of gas had passed through the pipe in the first nine days of the month alone. Currently, the gas link with Greece is the main place from which Bulgaria receives gas.