BAKU, Azerbaijan, Aug.2. The significant volume of Azerbaijani gas supplied to Bulgaria has played a pivotal role in enabling the country to lower its domestic gas prices for August, Trend reports.
Bulgaria’s Commission for Energy and Water Regulation has given its approval for the natural gas price for August, setting it at BGN 59.67/MWh, excluding access, transmission, excise, and VAT costs.
In their assessment, the regulator found that the required gas quantity for the domestic market was met through two different supply sources. The price composition for August includes the full agreed-upon amount of Azerbaijani natural gas delivered via the interconnector Greece-Bulgaria (IGB), in accordance with the existing long-term contract with Azerbaijan. These quantities cover 74.66 percent of the month's consumption and play a vital role in achieving favorable gas prices.
Furthermore, Bulgargaz has entered into a contract with a regional trader for the supply of liquefied natural gas (LNG) in August.
The approved price of BGN 59.67/MWh represents a 1.4 percent decrease compared to the natural gas price in July, which stood at BGN 60.58/MWh. The initial estimates had anticipated a 3 percent price increase. However, in the last three weeks, the price drop observed on the Dutch stock exchange led to a favorable change in this trend.
The IGB gas pipeline connects with the Greek national gas transmission system (DESFA S.A.) and the Trans-Adriatic gas pipeline (TAP AG) in the area of Komotini (Greece), and with the Bulgarian gas transmission system (Bulgartransgaz EAD) in the area of Stara Zagora. The total length of the gas pipeline is 182 km, the diameter of the pipe - 32'' - and a design capacity of up to 3 billion m3/year in the direction Greece - Bulgaria. Depending on the market interest for larger capacity and the possibilities of the neighboring gas transmission systems, the capacity of IGB is designed with the option for increase up to 5 billion m3/year with additional construction of a compressor station.
---
Follow the author on Twitter: @Lyaman_Zeyn