State-owned gas supplier Bulgargaz said it has shortlisted seven gas supply offers by three companies in a move to ensure the continuity of gas supply to Bulgaria, following last week’s cessation of supply from Russia.
The statement from the company said it has sent requests for proposals for alternative deliveries to 12 traders currently operating on the market in both Bulgaria and neighboring countries. The bids were shortlisted according to the lowest possible price of supply provided.
To ensure necessary gas deliveries for the remaining part of April, Bulgargaz carried out transactions on the regulated market in Bulgaria. In regard to speculation about the prices at which these transactions were conducted, it should be borne in mind that even if Bulgaria had accepted the Russian side’s request to use a mechanism to pay for natural gas supplies other than the one agreed in the contract, the price would have probably undergone unpredictable changes, given the lack of clarity about the exchange rate and the Bulgarian side’s inability to exercise control over the currency conversion process set out in the proposal of Gazprom Export.
Bulgaria, which depends almost fully on Russian gas imports to cover its consumption, has a supply contract with Gazprom which expires at the end of 2022.
At the beginning of April, Russian Gazprom unilaterally demanded that payments by unfriendly nations, i.e. those which supported sanctions against Russia, be made in rubles, rather than in euros or dollars as stipulated in their contracts. As of 27 April, Gazprom has halted gas deliveries to Bulgaria as it has not accepted the Russian demand to pay in rubles.
Bulgargaz will submit new proposal for the wholesale price of natural gas for May on 4 May and the final approval will be issued by the Commission for Energy and Water Regulation by 10 May.
