Twenty companies have applied for twice the capacity of the LNG terminal near Alexandroupolis Twenty companies have expressed a non-binding interest in reserving a total of 12.2 billion cubic meters per year of the capacity of the floating LNG regasification terminal near Alexandroupolis as well as the supply to the Greek national gas transmission system. This is twice as much as the technical capacity of the future facility, which is 5.5 billion cubic meters per year, the project company announced on the realization of the Gastrade terminal. At the moment, its majority owner is the Greek family Koppeluzu, and 20 per cent are from one of the major international fleets of liquefied gas tankers - GasLog. At the end of December 2018 it became clear that the Bulgarian state gas operator Bulgartransgaz also plans to enter the capital by 20 per cent. The Greek state-owned company DEPA is also expected to become a co-owner. Bulgartransgaz is also a candidate for LNG terminal capacity, but the amounts is a trade secret. The companies that participated in this stage of the market test are not only from the Southeastern Europe region. A significant part of the major international gas traders have also expressed interest in the project.
Source: mediapool.bg (04.01.2019)

BEH's revenues have soared The Bulgarian Energy Holding (BEH) reported over 90% growth in revenues to BGN 312 million for the nine months of last year. For this period there was growth in the profit - before taxes it was BGN 137.7 million, or an increase of about 15% compared to a year earlier. This shows the company's report published by the finance ministry. The enormous increase in revenues is mainly due to the dividends paid by the BEH companies, the biggest contribution coming from the Kozloduy NPP. The sale of the energy exchange for BGN 5.2 million on the Bulgarian Stock Exchange also affected the revenues of BEH. The Maritza-Iztok Mines has contributed with a profit of BGN 3.5 million and has also transferred 50% of its dividend to BEH. Another state energy company - Bulgargaz - has recorded profit. Nevertheless, the company registered a drop in its net income to BGN 4.1 million for the nine months of 2018. For comparison, in the same period a year earlier they were almost BGN 20 million. NEK is also performing with a declining trend in its results. The company reported a negative financial result for the nine months amounting to BGN 153.4 million, compared to the same period in 2017, when the decline was by BGN 62.4 million. However, Bulgartransgaz and the Electricity System Operator show positive results, whose profit for the nine month was BGN 23.4 million.
Source: Sega (09.01.2019)

Expansion of Chiren Gas Storage Facility to Be Finished in 2024 - Energy Minister The expansion of the Chiren underground gas storage facility will be concluded in 2024; that is when the construction of the facility's underground and ground installations should be finished, Energy Minister Temenouzka Petkova said during Friday's Question Time in Parliament. She explained that three-dimensional field seismic studies are now being conducted at Chiren to determine the final version of the expansion. The expansion was delayed due to an appeal lodged by one of the participants in the public procurement procedure, Petkova added. Bulgartransgaz EAD signed a contract for the project on May 25, 2018 and is currently implementing it. Petkova also said that once the Southern Gas Corridor and the Interconnector Greece-Bulgaria (IGB) are finished, Bulgaria will be able to receive 1 billion m3 of Azeri gas, as envisaged in the 2013 agreement between Bulgargransgaz and the State Oil Company of Azerbaijan Republic (SOCAR). In her words, this is one-third of Bulgaria's natural gas consumption. The construction of the IGB should begin in two to three months, and it should be finished and put into operation by the second half of 2020, the Energy Minister specified.
Source: Dnevnik (14.01.2019)

Bulgartransgaz Creates Subsidiary for Gas Distribution Hub Bulgartransgaz EAD has set up its subsidiary Gas Hub Balkan EAD in connection with the initiative for the construction of a gas distribution hub in Bulgaria. In a press release, the company said the creation of the subsidiary was pursuant to the decision by the Council of Ministers and the Parliament to amend Bulgaria’s 2020 energy strategy. In the future Bulgartransgaz will keep at least 51% in the subsidiary, which will develop a liquid gas exchange in Bulgaria, with a segment for bilateral trade. Initially, Gas Hub Balkan will give the participants in the natural gas market in Bulgaria and the region the opportunity to use a trading platform in line with Art. 10 of Regulation (EU) No 312/2014 establishing a network code on gas balancing of transmission networks. The proposed gas hub will improve energy security, diversify gas supply sources and routes and ensure competitive prices for consumers, Bulgartransgaz said.
Source: Dnevnik (18.01.2019)

A study for the expansion of Chiren gas storage facility has been commenced Bulgartransgaz EAD launched three-dimensional seismic surveys on the lands of the municipalities of Vratsa and Krivodol in connection with the planned expansion of the gas storage near Chiren. The survey will cover 198 km2, including the lands of Vratsa, Krivodol and 7 villages in the region. The aim is to obtain seismic data for the geological and structural characterization of the underground reservoir necessary for the expansion of the natural gas extraction and storage capacity. Upon completion of the activities, the Polish contractor Geophysics Torun will inform the interested parties about the next measurements. The overall expansion of Chiren should end in 2024, according to the energy ministry's estimates. Until then, the construction of underground and above-ground facilities at the gas storage facility should be completed.
Source: 24 chasa (21.01.2019)

US may impose sanctions on Bulgartransgaz because of Turkish Sream The plans of the Bulgarian government to build a transit gas pipeline as a continuation of the Russian Turkish Stream to the Serbian border are not approved by the United States and may result in sanctions against the gas carrier Bulgartransgaz. This is clear from a letter from US Ambassador to Germany Richard Grenel sent to BASF and Uniper, working on the Nord Stream project, at the end of last week. There is no direct threat to the Bulgarian company, but Grenel says the companies that support the construction of the two pipelines "are actively undermining the security of Ukraine and Europe," and their actions carry a "significant risk of sanctions". Foreign Minister Ekaterina Zaharieva, however, announced that the state is doing everything possible for the second Turkish flow pipeline to pass through Bulgaria, Serbia and Hungary. At the end of December 2018, Bulgartransgaz announced a tender for the construction of the new gas pipeline from Turkey to the Serbian border with the estimated value of BGN 2.73 billion.
Source: Capital (21.01.2019)

Without economic benefits from Turkish Stream in Bulgaria? The three companies that have shown interest in the expansion of the Turkish Stream pipeline in Bulgaria have not registered enough quantities to generate an economic benefit from the implementation of the project. This became clear after the completion of the first stage of the market test, which was expected to determine whether the project could be economically justified. Bulgartransgaz, which has to build the project for the new transit pipeline from the Turkish to the Serbian border, explained that they changed the terms for the next stage. The cost of reserving the capacity of the pipeline will be reduced, and the time will be increased from 15 to 20 years. The total project cost is expected to be BGN 2.8 billion.
Source: Standart (22.01.2019)

Bulgartransgaz launches the extension of the gas transmission infrastructure to the Bulgarian-Serbian border Bulgartransgaz started the expansion of the gas transmission infrastructure to the Bulgarian-Serbian border. This is a 474 kilometer gas pipeline. The estimated value of the public procurement contract amounts to BGN 2.286 bln, excluding VAT. The company information shows that the contract is announced in connection with the possibility of extending the gas transmission network of Bulgartransgaz in order to increase the security of natural gas supplies for Bulgaria, the neighboring countries and regions, as well as for reaffirming the role of Bulgaria as a gas distribution country in the EU region. In the present procedure, there is a need for return on investment for the purpose of financing and, respectively, monthly repayment of the contractor's outstanding remuneration for a longer period of time, the information says.
Source: 3e-news (23.01.2019)

Bulgartransgaz makes a final attempt to fill the "Turkish Stream" pipe The state-owned company Bulgartransgaz will make a third and final attempt to fill the planned transit gas pipeline, which is expected to transfer natural gas from the "Turkish Stream" pipeline through Bulgaria to the border with Serbia. It expects to reach acceptable proposals to ensure the financial viability of the project. The third phase of the Open Season Economic Test of the "Project for the Development and Extension of the Gas Transmission System" should be completed by January 31, after the first two phases of the test conducted last week failed. The test should determine the commercial interest in the pipe. The first stage saw only three binding tenders out of the four bidders registered in the procedure, but quantities for transit were insufficient. In the second phase, the capacity declared by the participants in the procedure at the Bulgarian-Turkish border was approximately 100% of the declared input capacity. At the Bulgarian-Serbian border, the participants claimed approximately 90% of the announced capacity.
Source: Sega (28.01.2019)

Bulgartransgaz will give BGN 2.8 billion for Turkish Stream The third phase of the market test for reserving capacity from the Bulgarian expansion of Turkish Stream has been successfully completed, Bulgartransgaz said. That is why the state-owned company has decided to implement the project, which at this stage is estimated at about BGN 2.8 billion. Subsequently, these funds have to be reimbursed by transit fees in the next 15-20 years. Interested candidates for participation in Phase 3 of the economic test have submitted three offers, with engagement capacity contracts pending. "100% of the declared capacity within the Phase 3 capacity of the Bulgarian-Turkish border and 100% of the declared capacity at the Bulgarian-Serbian border are reserved with the submitted requests from the users," the announcement of the state-owned company reveals. The names of the companies interested in transferring gas through the Bulgarian pipeline were not declared. No information is provided as to how much capacity is reserved for the quantity and at what transit fees. According to unofficial information, Russian giant Gazprom and two of its subsidiaries have shown interest.
Source: economic.bg (01.02.2019)

Construction of Gas Interconnector Greece-Bulgaria in Greece Gets Green-Lit Greece's Minister of Environment and Energy George Stathakis has provided the Gas Interconnector Greece-Bulgaria (IGB) with an installation permit for the start of construction works on Greek territory, the ICBG company implementing the project said on Wednesday. The decision will enter into force upon publication in Greece's Government Gazette, which will happen in several days. Bulgaria gave the green light to the construction of IGB on its territory in September 2017. The last step related to the obtainment of permits prior to the start of the construction works in Greece is the acquisition of a licence for independent transmission system operator, which Greece's Regulatory Authority for Energy is expected to issue in the second half of 2019. The IGB project will provide a direct link between the national natural gas systems of Greece and Bulgaria. The pipeline will have an approximate diameter of 813 mm and an overall length of 182 km, with a transportation capacity of approximately 3 bNcm/y of natural gas from Greece to Bulgaria. The project is being implemented by the ICBG AD joint venture company, registered in Bulgaria in 2011 by the State-owned Bulgarian Energy Holding EAD and IGI Poseidon S.A., with each shareholder owning 50 per cent. IGI Poseidon is a Greek-registered company with DEPA S.A. (Greece) and Edison SpA (Italy) as shareholders.
Source: Monitor (14.02.2019)

Dutch investors are opening a pasta plant in Bulgarovo The first plant for handmade Italian pasta will open doors in the industrial zone near Bulgarovo. Investor is the Dutch company Maviglia, which today holds leading positions in the production of fresh pasta in Belgium and the Netherlands. The company has already bought 9 acres of the industrial park. The estimated investment is about BGN 5 million. The company announced it will start with 10 workers, with an option to increase them to 40.
Source: Darik Radio (15.02.2019)

BEH will not pay the monopoly fine of EUR 77 million by the deadline of March 19 The Bulgarian Energy Holding (BEH) and its subsidiaries Bulgargaz and Bulgartransgaz have announced procedures for the selection of credit institutions to issue bank guarantees in favor of the European Commission (EC) to secure the fine of EUR 77 million imposed at the end of 2018. The penalty of the so-called gas-case filed by the EC following an Overgas complaint for refusal of access to the gas transmission network will not actually be paid until the due date of 19 March 2019. The reason is the intention to appeal as the EC decision itself, which was subject to the fine for abuse of a state gas monopoly and the amount of the sanction. In case of failure, the corresponding interest for the late payment will be charged, with which the final amount due can increase significantly. If in some way Bulgarian state-owned companies manage to rebut the conclusion of the EC, they will only be offset by the costs of issuing and maintaining bank guarantees.
Source: Capital (21.02.2019)

Gas connection with Greece is a step closer to realization The company, which is preparing the construction of the Bulgarian-Greek gas link ICGB AD, submitted a network code for the IGB gas pipeline to the regulators of Bulgaria and Greece, which made another step towards its certification as an independent gas transmission operator. Documents were filed on February 19, 2019, four months before the deadline of July 1, 2019, not later than 12 months before the date of commercial exploitation of the interconnector. The Network Code contains the rules and procedures for operating the IGB gas transmission system and details of the rights and obligations of the transmission operator and traders. It lists - detailed procedures for normal operation, including requesting capacity at IGB input and output points for straight and reverse flow; all necessary procedures for trading on the secondary market, which will be available to all traders; congestion management procedures and the "use or lose" principle; procedures for publishing data on the functionality and availability of capacity for all pipeline users.
Source: economic.bg (26.02.2019)

Bulgaria's BEH, Bulgargaz, Bulgartransgaz appeal 77 mln euro EC fine State-owned Bulgarian Energy Holding (BEH) said on Friday that, together with its units Bulgartransgaz and Bulgargaz, it has challenged before the EU's General Court the 77.1 million euro ($87.7 million) fine imposed on the three companies by the European Commission for blocking competitors' access to key gas infrastructure. "BEH and its subsidiaries do not accept the Commission’s findings that they have abused a dominant position on the Bulgarian gas market," BEH said in a statement. BEH and its units are seeking annulment of the Commission's decision to fine them. In December, the Commission said that between 2010 and 2015, the BEH group blocked access to the sole import pipeline bringing gas into Bulgaria, the country's only gas storage facility - Chiren, and the domestic gas transmission network. Without access to this essential infrastructure, it was impossible for potential competitors to enter wholesale gas supply markets in Bulgaria. This prevented any development of competition and ensured a near monopoly for Bulgargaz, the EU institution concluded. BEH pools together state-owned energy companies, including gas infrastructure operator Bulgartransgaz and gas supplier Bulgargaz. Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: Dnevnik (05.03.2019)

Companies from Saudi Arabia, Italy and Hungary want to build Bulgarian Stream Three companies have submitted bids for the Bulgartransgaz auction for the gas pipeline of Turkish stream through Bulgaria, it became clear when the offers were opened. Consortium Varna 1 (established by Bonati and Max Streicher) and Complications Development - Bulgarian branch, participate in ‘Gas Development and Expansion in Bulgaria’ consortium. The second consortium with offer is a union between Fovallakozo and KVV Kivitelezo. The third proposal comes from the Arkad Consortium, where Arkad-ABB together with Arkad Engineering and Construction Company are participants. These are unions between companies from Saudi Arabia, Italy and Hungary, explained the head of state-owned company Vladimir Malinov. For the time being, it is not clear whether there are Bulgarian or Russian companies in the consortia as the tenders continue to open, Malinov said. The auction commission will work until the end of March, when it is also expected to open the price bids.
Source: Sega (08.03.2019)

BEH has chosen a bank guaranteeing the payment of 2/3 of the fine imposed by the EC Bulgarian Energy Holding EAD has chosen a financial institution that will issue a bank guarantee guaranteeing the payment of 2/3 of the fine imposed by the European Commission (EC) to BEH Group in case AT.39849. The Bank will provide a bank guarantee for securing the obligations of BEH and its subsidiary Bulgargaz EAD on the imposed fine. Negotiations between BEH and the bank are under way to clarify the terms of the bank guarantee contract. Bulgartransgaz EAD, Bulgarian Energy Holding EAD and Bulgargaz EAD filed a complaint against the EC decision of 17 December 2018. The companies in the BEH Group did not accept the EC's conclusion that they had abused a dominant position on the Bulgarian gas market. In December, the Commission fined BEH with EUR 77 million for hindering access to the gas transmission network in Bulgaria. Even if it appeals against the EC decision to impose a fine on BEH, Bulgaria will have to implement it.
Source: 24 chasa (11.03.2019)

The gas rises below 1% in April Natural gas to rise by 0.83% on April 1. This is the proposal of the Energy and Water Regulatory Commission's experts in the report to the Commissioners. Now the price is BGN 44.80 per megawatt hours, the proposal of Bulgargaz, which the experts accepted, is to become 45.17 BGN without access and transmission charges through the network, excise and VAT. In its February forecast, the gas company headed by Nikolay Pavlov announced a price of BGN 44.58 per megawatt hour, a decrease of 0.49% compared to the current ones. The company expected lower gas import prices in the second quarter. The cost of supplying natural gas for the domestic market in Bulgaria is estimated at BGN 303.71 million. This amount also includes transit fees through Romania. For reserving capacity in the Negru Voda pipe to the Bulgarian border, Bulgargaz participates in the auctions of the Romanian transmission company Transgaz. The rate of return on capital (profit) is projected to be 7.26%.
Source: 24 chasa (18.03.2019)

Bulgartransgaz plans a new gas pipeline for BGN 3.5 billion The state-owned gas operator Bulgartransgaz intends to implement a gas pipeline project between Varna and Oryahovo. The facility is included in the new 10-year gas development plan for the country covering the period 2019-2028 and is to be approved by the Energy and Water Regulatory Commission. According to the plan, the future gas pipeline, which is in fact a combination of South Stream and Nabucco, should be ready in 2025. It is described as the second part of the Balkan gas hub project and its estimated value is EUR 1.78 billion, or nearly BGN 3.5 billion, including the modernization of existing sites. It is noted that the necessary funding will be provided with own funds and loans, but there is no clarity about what quantities of natural gas will be transported through it and where it will come from. This is the second huge expense planned by the gas company. Currently, Bulgartransgaz is conducting a procedure for the construction of a transit gas pipeline - from the Turkish to the Serbian border, with a price of BGN 2.8 billion. The project is a continuation of the Russian project Turkish Stream as Gazprom will use it to transfer gas to Serbia and Hungary.
Source: Capital (27.03.2019)

Saudi-based Arcad is the most likely builder of ‘Turkish Stream’ in Bulgaria Saudi-based consortium Arcad, which includes Arkad ABC and Arkad Engineering constructions company most likely, will be selected for the builder of the transit gas pipeline from Turkey to the Serbian border. Only its bid of BGN 2.15 billion without VAT (EUR 1.1 billion) is within the state budget ceiling set by the state-owned company of BGN 2.28 billion excluding VAT. This became clear when the candidates' financial proposals were opened in the Bulgartransgaz building. According to the CEO of Bulgartransgaz, the final decision on the ranking of candidates should be announced next week, but surprises are almost impossible. Thus, the construction of the pipeline could start in May, with the aim of ensuring a technical opportunity for natural gas transmission from 1 January.
Source: Capital (01.04.2019)

Bulgartransgaz receives BGN 55 million under a European mechanism EUR 27.184 million are granted for the project "Rehabilitation, Modernization and Expansion of the Bulgarian Transmission System - Phase 2" of Bulgartransgaz EAD by decision of the Coordination Committee to the Connecting Europe Facility. The activities are for the rehabilitation of two sections of the northern half of the gas transmission system with a total length of about 81 km. The funds are for delivery, construction and commissioning of two sections, as well as for the related construction supervision activities. The rehabilitation of sections will ensure a more secure and reliable transmission of natural gas. The rehabilitation activities of the plots are planned to be carried out in the period January 2019 - June 2022. The main objective of the project of common interest is to adapt the gas transmission network of Bulgartransgaz EAD to the infrastructure development plans in the region. This will provide a technical opportunity to transfer additional quantities of natural gas through the territory of the country through existing and new entry and exit points such as Greece-Bulgaria interconnectors, Bulgaria-Serbia, the concept of building a Balkan Gas Hub, as well as the plans for expansion of the Chiren UGS, the statement said.
Source: 24 chasa (02.04.2019)

The Italian-Saudi Consortium Arkad was announced as the winner of the public procurement procedure for the construction contractor for the gas pipeline from the Turkish to the Serbian border in Bulgaria, which may become part of the so-called TurkStream, Bulgartransgas, which held the procedure, said. Arkad offered the lowest price for completing the works. Three bids were submitted in the procedure: from DZZD Consortium Gas Development and Extension in Bulgaria's GRRB, which included Consortio Varna 1 (set up by Bonatti S.p.A. and Max Streicher S.p.A.) and Completions Development S.a.R.L. Bulgaria branch; a consortium of Fovallalkozo Zrt and Industries-KVV Kivitelezo Zrt from Hungary; and Consortium Arkad with participants Arcad ABB S.p.A. From Italy and Arkad Engineering and Constructions Company from Saudi Arabia.
Source: Sega (04.04.2019)

Bulgartransgaz to spend further BGN 351 mln on TurkStream pipeline State-owned Bulgartransgaz announced a new tender for the construction of two compressor stations enabling gas transit between the TurkStream pipeline extension and existing Bulgarian pipelines. The estimated cost of the project is set at BGN 351 mln. The amount added to the BGN 2.6 bln cost of the TurkStream pipeline construction and will raise Bulgartransgaz’ total investment in the pipeline to approximately BGN 3 bln. Overall, the total cost of the project puts a question mark to the potential profitability of the pipeline within the medium run, in our view. Bulgartransgaz expects to receive an average BGN 340 mln per year from gas transit fees from the TurkStream extension but it will also have to cover exploitation fees of BGN 130 mln per year, as well as interest payments on the investment.
Source: Capital (02.05.2019)

Bulgartransgaz Selects New Contractor for Gas Pipeline between Provadia and Serbian Border Bulgartransgaz selected a new contractor for the construction of the gas pipeline between Provadia and the border with Serbia, which will transport gas from Turkish stream, Bulgartransgaz Executive Director Vladimir Malinov said. The pipeline will be constructed by the DZZD Consortium Gas Development and Expansion in Bulgaria, which includes the Italian Bonatty, German Max Streichher and Luxemburg Complications Development - Bulgaria Branch. The company initially ranked first in the public procurement procedure - Saudi Arabia's Association Consortium Arkad, which offered EUR 1.28 billion to build the gas pipeline for 250 days and EUR 1.102 billion for 615 days. The interest rate offered by the Saudis for the 10-year payout was 4.1%. On the day of the opening of the financial offers, the head of Bulgartransgaz Vladimir Malinov said there is a proposal that fits in the estimated price of BGN 2.28 billion. The first-ranked Saudi consortium Arkad, which was supposed to file documents up to May 16th. As this has not happened, the deadline was extended to May 27. Until then, only 4 of the 30 required documents had been submitted to sign the contract. Therefore, the management bodies of Bulgartransgaz decided to proceed with the signing of a contract with the second participant - consortium Gas Expansion and Development of Bulgaria.
Source: 24 chasa (29.05.2019)

Plan to launch the gas hub and exchange next year with nearly 1 billion cubic meters Plan to start the Balkan gas hub as a virtual point of trade together with the blue-fuel exchange with an initial volume of nearly 1 billion cubic meters in early 2020 was presented to the Energy Committee of Bulgartransgaz and the subsidiary its gas hub Balkan company on a discussion in the National Assembly. In order to realize these intentions, amendments will be made to the Energy Act, which will oblige the state gas supplier to sell its unrealized quantities on the domestic market under the long-term contract with the Russian monopoly Gazprom, said Valentin Nikolov, Chairman of the Committee. The changes will be published for discussion on the World Energy Council website on Wednesday, but some of them sparked criticism from the industry as soon as they were presented and the views will be reflected immediately, explained Nikolov. Vladimir Malinov, head of Bulgartransgaz, reminded that his company has an agreement with the operator of the gas trading platform at the Baumgarten hub in Austria and will use the exchange model there for the Bulgarian stock exchange.
Source: mediapool.bg (05.06.2019)

The CPC stopped the construction of Turkish Stream through Bulgaria The Commission for Protection of Competition (CPC) refused Bulgartransgaz preliminary implementation of the contract with Gas Development and Expansion in Bulgaria (GDEB) for the extension of the Russian gas pipeline Turkish stream through Bulgaria. This became clear from today's statement of the anti-monopoly body under the Public Procurement Act. Thus, Bulgartransgaz will not be able to sign a contract with the preferred bidder who was actually second in the bidding. The GDEB includes Consortium Varna 1 (established by Bonatti S.p.A. and Max Streichher S.p.A.) and Complications Development S.A.R.L.-Bulgarian Branch. This consortium was initially expected to win the billion-dollar public procurement contract for the construction of the pipeline. Complications Development is related to the company - Trubnaia metalurgical company (TMK). The construction of the extension remains frozen until the CPC decides on the complaint of the declassified winner of the tender for BGN 2.286 billion excluding VAT - the Saudi consortium Arcad. The company lodged a complaint on June 10 for a surprise demise in favor of the GDEB.
Source: economic.bg (21.06.2019)

EC asked Bulgaria to fully introduce market prices for electricity Bulgaria's energy plans are chaotic, the numbers are shuffled, and sources of funding - unclear. The country does not say exactly how it will be able to fight energy poverty, how it will make the air cleaner by using clean energy to heat or cool. At the same time, gas plans are lagging behind, and diversification of sources is still in the future. This is understood by the EC report on the extent to which the Bulgarian draft of the national energy and climate plan for 2030, announced last week, is adequate. It is important because on that basis the Energy Strategy of Bulgaria will be renewed by 2050. It will determine to a great extent how the country will develop in the coming decades. Brussels points out that Bulgaria must move on to market, rather than regulated, electricity prices - a critique that has been repeated over the years by the World Bank. How much it will cost to implement all of these plans is still unclear, but unofficial accounts show that it's billions of BGN, but it is unclear where they would come from.
Source: Sega (24.06.2019)

The construction of Bulgarian Stream will delay indefinitely The construction of the Bulgarian section of the Turkish Stream route will be further delayed. The reason is that the Supreme Administrative Court (SAC) did not finally allow the state-owned Bulgartransgaz to sign a contract with the Russian TMK-related unification "Gas Development and Expansion in Bulgaria" (GDEB) until the dispute over the removal of the Saudi consortium Arkad. The ruling of the court confirms a recent decision of the Commission for Protection of Competition (CPC), which revoked the decision of Bulgartransgaz to replace the selected builder of Turkish Stream through Bulgarian territory. At the end of May, the state operator announced that Arkad dropped out of the race because it did not file a number of documents in time, and the GDEB gave a better offer. According to the CPC, this decision is unlawful and the contract should be assigned to Arkad. At the same time, the CPC refused to execute the contested order in advance, and so the state gas operator could not enter into a contract with GDEB, which blocked the commencement of the construction of the pipeline. The commitment to Gazprom was for the first gas pipeline to Serbia to run next year. This could also affect the future liberalization of the gas market. In April, for example, Energy Minister Temenuzhka Petkova commented that the concept of Bulgarian Stream includes two things - the construction of the pipe and the start of the gas exchange. "These are the two mandatory conditions to talk about a liberalized market and security of supply. When we have the opportunity to deliver from different sources on different routes, then we will have a corresponding and liquid exchange to provide competitive prices to Bulgarian consumers and business," said Petkova. The struggle for the construction of the 474-kilometer-long route from the Turkish-Bulgarian to the Bulgarian-Serbian border continues for another month. Construction of the section will cost over BGN 2.2 billion, provided by the Bulgarian state, and this makes the project particularly attractive.
Source: Sega (16.07.2019)

Greece Has Granted a Gas Interconnector License to Bulgaria By decision of the Greek Regulatory Authority for Energy (RAE), ICGB AD receives a license for an Independent Transmission System Operator (INGS). The license, issued on June 27, 2019 and officially received on July 18, 2019, concerns the Greek section of the gas interconnector with Greece (IGB project). The license is issued for a period of fifty (50) years and expires on June 27, 2069. It entitles ICGB AD to start the construction of the project, including the pipeline and auxiliary facilities and equipment on the territory of Greece. Obtaining this license represents enormous progress as it is the final step towards securing the regulatory regime for the IGB project and ensuring a successful start of the construction of the pipeline across Greece. “The continuous corporate efforts of ICGB and its shareholders, the political will of the governments of Bulgaria and Greece and the unquestionable support from the EC helped us to successfully overcome the challenges before IGB”, announced the Executive Officer from Bulgarian side Teodora Georgieva. According to her, the gas project already has secured funding, the contractors for all key activities have been selected, the contracts for owner’s engineer and construction supervision have been signed and the reserved capacity will ensure the successful operation of the interconnector. “The synergy of IGB with other key energy projects – part of the Southern Gas Corridor like TAP and TANAP, makes the need of the interconnector undeniable and inseparable part of the comprehensive energy strategy and the priorities of Europe”, underlined the Executive Officer of ICGB from Greek side Konstantinos Karayannakos. He noted that the project ensures real diversification of gas supplies, which will improve Greece and Bulgaria’s positions on the energy market and will contribute to the integration of the entire region. The construction of the gas interconnector Greece-Bulgaria aims to ensure diversification not only of the routes but also of the natural gas sources for Bulgaria and the region. As part of the development of the Southern Gas Corridor, through IGB Bulgaria and its neighboring countries will have access to alternative supplies from the Caspian region as well as from existing or prospective LNG terminals. IGB‘s implementation also provides opportunities for transit transmission through the gas pipeline Greece-Bulgaria and the gas transportation system of Bulgartransgaz EAD to the other gas interconnectors with Romania and Serbia, ICGB reported.
Source: econ.bg (23.07.2019)

ICGB has applied for approval of the Network Code of the Interconnection Gas Network (IGB) Intergovernmental company ICGB has submitted an application for approval of the Network Code of the Interconnection Gas Network (IGB), pursuant to the Final Joint Commission Decision on the Energy and Water Regulatory Commission and the Energy Regulatory Authority of Greece on August 8th, 2018. With the cited decision the company is exempt from the requirements of the Directive of the European Parliament and of the Council from July 13th, 2009 concerning common rules for the internal market in natural gas and for repealing a Directive about access of third parties, regulated tariffs and separate property. According to the Final Co-decision, ICGB is obliged to submit for approval to the national energy regulators of Bulgaria and Greece the IGB Network Code no later than twelve months before the date of commercial exploitation. Last week, the licensing process of the Greek section of Greece-Bulgaria interconnector was completed.
Source: investor.bg (29.07.2019)

Bulgargaz ended the half-year with a profit of BGN 27.9 million The state-owned Bulgargaz significantly increased its net profit in the first six months of this year and reached BGN 27.9 million. This was recorded in the financial statement of the company, which was recently published. The profit of the company increased by 187.5%, and in the same period last year the profit was only BGN 9.3 million. The company managed to pay their imposed fine in the BEH gas case. The company jointly with BEH and Bulgartransgaz paid one third of the imposed fine, which amounts to BGN 50.2 million. The amount was paid at the end of 2018, explained Bulgargaz. Since the beginning of the year Bulgargaz has signed several contracts for the supply of natural gas through a virtual outlet.
Source: 3e-news (16.08.2019)

Bulgartransgaz ranks first 179.4 mln euro bid for building two compressor stations Bulgartransgaz said it has ranked first the BGN 350.8 million offer of a tie-up of Germany's Ferrostaal and two Bulgarian companies to build two compressor stations for the planned extension of the TurkStream gas pipeline through Bulgaria. The consortium, of which Bulgaria's Glavbolgarstroy and Glavbolgarstroy International are members, has received the maximum score of 100 in the tender called by Bulgartransgaz, the state-owned Bulgarian natural gas transmission network operator said in a statement earlier this week. The other consortium which filed a bid for the contract comprises Bulgarian company Klimatronik, Belarus-based construction company Alvora, Ukraine's Poltavaspezmontage and Spanish infrastructure consulting company TEC Cuatro. It proposed to build the two compressor stations for BGN 369.1 million. The construction of the two compressor stations is part of a project for extending the TurkStream gas pipeline of Russia's Gazprom westwards from Turkey through Bulgaria. Bulgartransgaz is also due to sign a contract for construction of the 484 km pipeline for transit of natural gas from Bulgaria's border with Turkey to the border with Serbia.
Source: SeeNews (23.08.2019)

The Balkan gas hub starts with 5.7 billion cubic meters of gas Bulgartransgaz is holding talks with the Turkish company Botash and the Romanian Transgas to allow 5.7 billion cubic meters of gas to enter Bulgaria as of January 1, 2020, the head of the company, Vladimir Malinov, said. Negotiations with Botash are planed for next week. The point of connection of the two gas systems is Strandzha - Malkochlar. If an agreement is signed, 11 million cubic meters of liquefied natural gas will be transported from terminals in Turkey per day. At the moment, in addition to the Russian gas through the Trans-Balkan gas pipeline, there is an opportunity for physical import of 1.5 billion cubic meters of blue fuel from Greece at Kulata - Sidirokastro. Exports through Romania will have a capacity of 3 billion cubic meters per year. Now 1.5 billion cubic meters per year can be transported from Greece to the Revitus LNG. If an agreement with Botash is signed for 4 billion cubic meters, gas traders in Bulgaria will be able to transport 5.7 billion cubic meters a year, as exports to Romania and possibly to Ukraine could be up to 3 billion cubic meters, and 2.7 billion would be left for trade in Bulgaria.
Source: 24 chasa (09.09.2019)

Bulgartransgaz SPJSC and Arkad Consortium Wednesday signed a contract for the delivery of materials, investment project design, development and putting into operation of the extended gas transmission network infrastructure from the Turkish-Bulgarian to the Bulgarian-Serbian border. The contract on the part of Bulgartransgaz was signed by Lyubomir Krustev. Bulgartransgaz CEO Vladimir Malinov pointed out that this is the beginning of an exceptionally important cooperation with Saudi Arabia, which will guarantee natural gas supplies to Bulgaria, the Balkans and Europe. The contract is worth USD 1.102 billion dollars, Malinov said. It has to be implemented within 615 days after its conclusion. That has to allow Bulgartransgaz to supply Serbia, then Hungary and finally, the hub in Austria. The project for the expansion of the gas transmission system from the Turkish-Bulgarian to the Bulgarian-Serbian border is of strategic significance for Bulgaria.
Source: 24 chasa (19.09.2019)

The liberalization of the natural gas market in Bulgaria starts in October Liberalization of the natural gas market starts in October. Until then, amendments to the energy law on the gas part are expected to receive final approval by MPs. This was made clear at the meeting of the Energy Committee at the National Assembly, at which the already refined amendments were adopted on second reading without any major obstacles. The changes make it possible to diversify natural gas supplies, which will subsequently be reflected in price levels. The changes start the gas exchange, introducing the concept of "organized natural gas market". In discussing the changes, MPs hoped that the formation of the natural gas market would avoid the faults in the electricity market. Of course, for the most part the changes will depend on the Rules of Procedure, which will have to be prepared by the operator of the organized natural gas market.
Source: 3e-news (20.09.2019)

Skopje wants a minority stake in Belene NPP and 10% of the electricity generated Northern Macedonia is interested in conducting expert-level negotiations on the Belene NPP project. In the process of selecting a strategic investor for the project, Skopje has expressed interest in acquiring a minority stake in the future project of the company, as well as in purchasing electricity from the nuclear power plant at a rate of 10 percent. "A review of the applications submitted by the companies is under review, followed by a short list of companies to be interviewed," Energy Minister Temenuzhka Petkova said at a meeting with Macedonian Economy Minister Kreshnik Bekteshi. According to both ministers, the Belene NPP project will be of regional importance. The two countries continue to work together on the Memorandum of Understanding signed in 2017 on natural gas. Bulgartransgaz EAD has prepared a feasibility study on the possibility of developing a new gas connection between Bulgaria and Northern Macedonia. Such an analysis is expected to be prepared by the Macedonian side as well. The Macedonian minister has informed his Bulgarian counterparts that the government in Skopje has amended its energy legislation to comply with the latest European regulations.
Source: Banker (01.10.2019)

EWRC approved the lower price of natural gas The Energy and Water Regulatory Commission (EWRC) approved a 0.11% lower natural gas price for the period October-December 2019. With this decision, the regulator agrees with Bulgargaz's proposal, made three weeks ago. The price at which the public provider sells natural gas to the final suppliers and to customers connected to the gas transmission network is BGN 44.85 / MWh (excluding prices for access, transmission, excise duty and VAT). EWRC leaves unchanged the prices of heat and electricity "due to the slight change in the price of natural gas”. The approved price of natural gas includes the component "price of natural gas at the entrance of the transmission networks" in the amount of BGN 44.03 / MWh, the component for the activity "public supply" under Art. 17, para. 6 of the NRCG in the amount of BGN 0.69 / MWh, as well as the component for compensation of expenses arising from imposed obligations to the society under Art. 11a, para. 2 of the NRCG in the amount of BGN 0.13 / MWh, covering the expenses of Bulgargaz SPJSC for storage of quantities in the Chiren underground gas storage facility in fulfillment of its obligations under the Emergency Plan.
Source: 24 chasa (01.10.2019)

Bulgartransgaz starts construction of compressor stations for Balkan hub The contract for the construction of the Nova Provadia and Rasovo compressor stations, part of the expansion of the gas transmission infrastructure in Bulgaria under the Balkan Stream project, will be signed in the presence of the Minister of Energy Temenuzhka Petkova and the CEO of Bulgartransgaz SPJSC Vladimir Malinov. The signing with the selected contractor - DZZD Ferrostaal Balkangaz, will take place today, October 3, 2019. DZZD Ferrostaal Balkangaz is a union between Ferrostaal Industrieanlagen GmbH - Germany, Glavbolgarstroy JSC and Glavbolgarstroy International JSC. The contractor was selected in August 2019 after a public procurement procedure. The value of the contract is EUR 350.8 million, excluding VAT. The project for the extension of the gas transmission infrastructure from the Turkish-Bulgarian to the Bulgarian-Serbian border will provide the conditions for the implementation of the Balkan hub gas concept.
Source: economic.bg (03.10.2019)

The first EUR 200 million have been provided for Balkan Stream Bulgartransgaz has taken a loan of EUR 200 million from 4 banks for the down payment of the consortia that is building Balkan Stream. 9 banks took part in the procedure, but contracts were signed only with Citibank, ING Bank, UniCredit Bulbank and the International Bank for Economic Cooperation. The loan is secured by dollar deposits with these banks. Dollars currently carry more interest than the euro loan. In addition, payment to contractors is in euro. In this operation, the company will earn BGN 2 million in 6 months. There is an option to extend the period by another 6 months, which would bring another BGN 2 million. These EUR 200 million will provide the majority of the advance payment. To the Saudi Arcad consortium, which is already building the linear section of the pipeline, it is BGN 250 million and VAT 50 million. BGN 140 million and VAT 28 million are for the Ferroshtal Balkangas Consortium, which is building the two compressor stations. The payment period for the linear part of the pipeline is 120 months after commissioning, and for compressor stations - 2 years.
Source: 24 chasa (23.10.2019)

Experts question the need for Balkan Stream Gas consumption in Bulgaria remains low, and Bulgaria still relies mainly on a single source of blue fuel, no local production and no gas connections with neighboring countries. Against this background, the chances of a future Balkan gas hub in Bulgaria are not great, and Balkan Stream will diversify the route of gas, but not its source. This is the common opinion of experts at the roundtable on gas supplies to Bulgaria. "To have a hub, there must be gas," Plamen Dimitrov of the Bulgarian Geopolitical Society commented the idea for gas center Balkan. Dimitrov also quoted the words of the head of Russian giant Gazprom Alexei Miller, saying that the company prefers to work on long-term contracts and would not participate in the hub. "There are not many market players, we have no traditions in this field, and no staff," Plamen Dimitrov explained. Bulgaria cannot have a working hub because there is no working market, experts concluded. They also criticized the Balkan Stream project, whose construction began days ago. The cost of the route is over EUR 1.1 billion, and last Wednesday, state-owned Bulgartransgaz announced that it had taken a loan of EUR 200 million for the advance payments of the segment. "It is more than clear that Russian gas would be involved, the question is whether Bulgaria will have alternatives so that we can choose price deliveries when they are more profitable," said expert Galina Alexandrova. She added that the project does not diversify sources, only routes. There is also a risk in financing the project.
Source: Sega (30.10.2019)

Gas Hub Balkan has successfully introduced its trading platform The trading platform of Gas Hub Balkan was successfully put into commercial operation as part of the first tender for the 2020 Gas Release Program, Bulgartransgaz said in a statement., Nearly 55 million cubic meters of gas were successfully traded. More than 15 participants had the right to participate in the auction, which were offered one annual and twelve monthly products. As a result of the transactions, e-commerce was realized for the first time on the Bulgarian gas market, with 550,000 MWh (~ 55 million m?) successfully traded, or 25 percent of the total amount released, according to Gas Hub Balkan. The second auction of the program will be held on December 16, 2019.
Source: 3e-news (10.12.2019)