Preparations for the winter period are under the sign of anticipation of the start of supplies from Azerbaijan, which will start on October 1 and from now on will already occupy a significant part – 1 billion cubic meters will be supplied from the Shah-Deniz field, managed by a consortium from international companies. That’s what he said Valentin Kanev, manager of the Balkan Black Sea Oil and Gas Association, in the show “IN development” on Bloomberg TV Bulgaria p host Delyan Petrishki.
“The other part, one tanker, has been secured for October and from here on efforts are being made to supply via tenders for Revitusa LNG from Greece. Tenders are forthcoming, which will be organized by DESFA, the operator of Greece’s gas transmission system. They will be held at the end of September, beginning of October”.
There is now an additional possibility and this was announced, “because Greece provided additional quantities for storing liquefied gas on a floating platform, and Bulgaria could also be supplied from here on with more quantities of liquefied gas”, the guest also said.
A very important element of the preparation is that in past tenders for the preservation of capacities on the Bulgaria-Greece border at Kulata-Sidirokastro, capacities were preserved that could cover about 90% of the country’s consumption for one year, the interlocutor added.
“For the next gas year, 60% of fixed capacity at this limit and about 30% of interruptible capacity have been secured with an unprecedented increase in the auction premium (it exceeds several times the initial price, which is for reserving capacities)”.
Bulgaria is ready to cover the huge part by reserving these gas capacities coming from Greece, which can be done by negotiating such slots in Revitusa, of course also by companies that can do it independently and even more in cooperation and partnership with Greek companies, stressed Kanev.
The possibilities for supplying liquefied gas from Greece are good. Companies that can deliver liquefied gas can negotiate with Bulgaria, but rather in auctions, which are already planned and this is part of the preparations, the guest also said. “At the last auction, the price was EUR 30 below the price of natural gas on the Dutch TTF exchange. Basically, TTF is a more expensive exchange, there prices are higher than the exchange price. So organizing such auctions will always give a lower price”.
“Gazprom is also an opportunity. However, it should be borne in mind that we are in a situation of potential arbitration relations – court and filing a lawsuit. So, it’s kind of a dead end. If we proceed to renew the contract with Gazprom, it is not known how this would affect our chances of success in the arbitration cases. But Gazprom can participate, regardless of the contracts we have, by participating in the Balkan gas hub auctions. Many companies participated in the last auction, including “Gazprom” (it may not be the company “Gazprom Export”, but other companies of “Gazprom”)”.
The twenty percent in the terminal in Alexandroupolis can help in the future, increasing the reserved capacities to 1 billion as well. It can also affect gas supplies in Bulgaria for third countries in the future and actually turn Bulgaria into a gas hub where gas passes through and is traded for the region, said Valentin Kanchev.
According to the interlocutor, an agreement on an increase in the quantities supplied from Azerbaijan is possible “so that Bulgaria can solve the issues of more secure supplies from alternative sources, or the same if it manages to agree with Gazprom, but still there are some framework of the contract. “This can also reflect on the price.”
Have we lost our levers of influence at a renewed political level of negotiations between the Bulgarian and Russian sides, considering the possibilities that are actually available in Bulgaria? What are the worst possible and worst possible outcomes? What should we expect from future arbitrations and are there grounds for claims by Gazprom when filing an arbitration case?
How does President Radev’s Middle East tour fit into Bulgaria’s overall efforts to ensure gas supply? Greece will continue with the construction of an infrastructure for the regasification of liquefied gas with two more terminals – should Bulgaria maintain its interest and commitment to such undertakings?
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You can watch all the guests of the “Development” show here.