Bulgaria set to lower gas prices for November, as IGB online

Oil&Gas Materials 12 October 2022 09:50 (UTC +04:00)
Bulgaria set to lower gas prices for November, as IGB online
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, October 12. Bulgaria will enjoy lower gas prices in November, as it has started importing gas from Azerbaijan via the interconnector with Greece (IGB), Trend reports citing Bulgarian media.

Reportedly, Bulgargaz submitted to the Energy and Water Regulatory Commission (EWRC) its application for approval of the price for November. It is BGN 166.14/MWh or EUR 84.95/MWh, calculated according to the Bulgarian National Bank fixing, reports the company.

The tariff is formed in accordance with the regulation on the regulation of natural gas prices. The proposed price is two times cheaper that of European gas hubs for November delivery, which as of 11 October 2022 is around EUR 160/MWh.

"This significant difference is due to the extremely competitive prices obtained within the framework of the tender procedure for the supply of natural gas conducted by Bulgargaz EAD in November, as well as the possibility to supply the full Azerbaijani quantities at the contract price through the IGB gas pipeline," said officials from the company.

A final tariff approval proposal will be submitted to EWRC on November 1, taking into account the quotations of the pricing components as of October 31, 2022.

Earlier, a wholesale price of natural gas for October was set at 233.36 levs ($116.93/119.31 euro) per MWh, a month-on-month drop of 34 percent.

IGB connects Bulgaria with the Southern Gas Corridor and will enable secure supplies from a variety of sources to several countries in Southeast and Central Europe, including Moldova and Ukraine.

The pipeline is set to transport 1 billion cubic meters of Azerbaijani gas per year to Bulgaria. Its capacity is 3 billion cubic meters with the possibility of expanding to 5 billion cubic meters per year.


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