Nikolay Pavlov: We will offer a lower price of natural gas in November

Bulgargaz will offer a lower price of natural gas for November than the one proposed in the application of October 11 to the EWRC (BGN 124.76 / MWh (excluding prices for access, transmission, excise and VAT), said the executive director of " Bulgargaz ”Nikolay Pavlov during the open meeting in the energy regulator, but without committing to a certain percentage or figure.

The reason for this is the observed decline in European gas markets in recent days, said Pavlov. According to him, in the conditions of energy crisis the company is committed to regular deliveries to its customers. In this regard, he pointed out that the amount of natural gas injected into the underground gas storage in Chiren by the company is 15% higher than in the previous 2020. He recalled that Bulgargaz sells natural gas at lower prices than European gas markets, which is the result of contracts with suppliers.

"I want to emphasize that the expected price for November of Bulgargaz will be over 30% lower than the prices on the European gas markets. The forecasts of the agencies that monitor these markets are that in the next 2 months prices will remain at current levels, "said Pavlov.

EWRC Chairman Ivan Ivanov, for his part, also noted his expectations for a lower price in November compared to October. "I want to point out that there are factors that should make this trend sustainable," he said. Ivanov referred to Russian President Putin's instructions to Gzprom Chairman Alexei Miller to fill European gas storage facilities after the completion of this activity with regard to those on Russian territory. "This will give peace of mind to anyone who buys gas on the stock exchanges in Europe." As a factor of calm, the chairman of the energy regulator also pointed to the conclusion in the opinion of the German Ministry of Economy regarding Nord Stream 2 that it does not disrupt gas supplies on other routes to European countries.

"We hope to come up with a decision on Monday in the interest of Bulgarian consumers, that is, the price of natural gas for November will be lower than for October," Ivanov said.

The executive director of Bulgargaz emphasized the increased interest on the part of consumers to buy gas from the company in recent weeks.

"On the one hand, this is due to the lower prices offered by Bulgargaz, but the other reason is that consumers have obviously been deceived by inexperienced traders and the result is now that on the eve of winter they have contracts but no gas. They run out of gas and now urgently want to buy gas. Bulgargaz provides these additional quantities as far as the possibilities under these contracts allow. "But I want to emphasize that Bulgargaz is not a company that produces natural gas and, accordingly, the company's capabilities are not limitless," Pavlov said. In this regard, he drew attention to the tenders under the Gas Release Program, specifying that the quantities of natural gas sold at the first two auctions for an annual product last year in November and 12-month products and the auction held on December 7. г. with delivery in 2021 according to the Energy Act are intended to guarantee deliveries in the country as the quantities are intended for final suppliers and customers connected to the gas transmission system of Bulgartransgaz. "This also applies to the tenders that will be held on November 15, 2021 and on November 22, 2021 for the supply of quantities in 2022," he said, noting that the company will send a letter to the EWRC to exercise control over the implementation of the Gas Release Program.

"We understand the temptation to sell these quantities on the free market, including those exported outside Bulgaria, as our price is significantly lower, but this means that someone will not get their gas, which can lead to very serious consequences for consumers. This should not be allowed, "Pavlov stressed.

Again in this regard and according to the Action Plan for Emergency Situations, approved by the Minister of Energy, he added that the quantities pumped into the gas storage in Chiren, which will be extracted, are intended to smooth the seasonal unevenness of final customers in Bulgaria and should control is exercised over whether these injected quantities and subsequently extracted will be intended for these customers and called for control, including by the Minister of Energy.

The Executive Director of Bulgargaz once again commented on the deliveries of natural gas from Azerbaijan, for which the company issued a statement a day earlier, Bulgargaz supplies all possible quantities, he said, emphasizing that this gas is in no way for re-export.

EWRC Chairman Ivan Ivanov, for his part, described another clarification as important, especially considering that the price of Azeri gas is more than 4 times lower than that of Gazprom Export. "This largely depends, of course, on the formulas by which this price is calculated and which are different for the two suppliers."