"Bulgargaz" Will be Able to Change the Price of Natural Gas Received from "Gazprom"

The long-term contract between "Bulgargaz" and "Gazprom" for the supply of natural gas in Bulgaria is already changed, the company announced in an official statement. The amendments do not lead to a change in the price of natural gas but only allow for negotiations in this direction.

The reason for the annexes is the decision of the European Commission of May 24, which legally bound the commitments offered by "Gazprom" to complete the antitrust case against the company.

"Gazprom" agreed to remove all restrictions imposed on its customers on gas resale across borders, to allow gas to flow from and to parts of Central and Eastern Europe still isolated from other countries - the Baltic States and Bulgaria. It will also ensure that the gas price for Bulgaria, Estonia, Latvia, Lithuania, and Poland reflects the price level in competitive Western European gas markets.

The price review clause is amended so that each party can initiate a review if there is a significant change in the economic circumstances of the European gas markets or if there is a change in gas prices in gas distribution centers in continental Europe. In addition, Bulgargaz's option is to apply for a change in the delivery for all or part of the agreed gas volumes (no less than 50 million m3 per year).

The main problem with the current supply of Russian gas in Bulgaria is that its price does not depend directly on the free market situation. "Bulgargaz" explained that they had their first meeting with representatives of "Gazprom's subsidiary on 28 September 2018 in St. Petersburg. The next workshop is planned for November.

Petya Petrova

Petya Petrova is a journalist, believer, and traveler.

Comments (0)

Like Our Page on Facebook

Like our page to make sure you see all of our NEW articles!

Click to

Sign Up For Our Newsletter

Subscribe and stay informed about all important events!