Final: The price of gas for September

Final: The price of gas for September
Final: The price of gas for September

The launch of the “Bulgaria – Greece” interconnector is a key factor in reducing the price for October

The Commission for Energy and Water Regulation finally ruled on the price in September, and it is BGN 353.21 per megawatt hour, excluding prices for access, transmission, excise duty and VAT.

At this price, “Bulgargaz” will sell natural gas to the end suppliers of natural gas and to persons who have been issued a license for the production and transmission of thermal energy.

The commission determined the price after an analysis of the data and documents submitted by Bulgargaz on September 1. It was found that the public supplier formed the total estimated quantity for the domestic market from three sources:

– the amount of gas under the Fourth Agreement to the contract for the supply of natural gas by a company from Azerbaijan for the period from July 1, 2022 to September 30, 2022;

– quantities of natural gas provided under a contract for the supply of liquefied natural gas /LNG/;

– quantities from an “auction type” auction on the “Gas Hub Balkan” platform.

Bulgargaz’s application contains the prices of individual suppliers and the size of their quantities in the total mix. The secured quantities of natural gas cover the commitments of the public supplier to final suppliers and heating companies, as well as the quantities under the bilateral contracts with industrial customers, the obligations under the Release Program and the Injection Plan at the Chiren Gas Plant.

The price of natural gas approved by the commission is lower than that proposed by Bulgargaz. The regulator found that the natural gas price included illegal costs that were deducted from the total costs of the natural gas price for September 2022.
The leading reason for the high price growth for September is the continued increase in international natural gas prices in August as a result of Russia’s military aggression in Ukraine.

The greatly reduced or suspended deliveries by Gazprom lead to increased uncertainty on the gas market in Europe and the formation of unrealistically high quotations. An additional negative factor is the increased rate of the US dollar, which is a pricing element.

Regardless of the increase, the data show that the established price of natural gas for September is significantly more competitive compared to the prices on the European gas markets for deliveries in September, which are at levels of 232 euros per megawatt hour or 453 BGN.

The lower price for Bulgarian consumers is due to the favorable price conditions under the long-term gas supply contract from Azerbaijan. Some of the delivered quantities are at a significantly lower price, as they depend entirely on oil prices for a period of 6 months back. In addition, the price mix of “Bulgargaz” includes supplies of quantities of natural gas from the “auction type” tenders held by Gas Hub “Balkan”, which are at very competitive prices.

At the open meeting held on September 30, the executive director of Bulgargaz, Denitsa Zlateva, stated that with the launch of the “Bulgaria-Greece” interconnector on October 1, real prerequisites are created for the formation of a maximum good price for the month. The reason for this is that our country will now be able to receive the full quantities of gas under the contract with Azerbaijan, which are at an extremely favorable price. The company will participate in the Revitusa terminal slot reservation and regasification auctions in 2023 to ensure future LNG supplies.
“The prices achieved at the auctions held on the platform of the Balkan Gas Hub proved that it is possible to secure profitable supplies of natural gas. The commission fully supports the intention of the public supplier to continue holding auctions on this platform, as well as to be an active participant in the annual auctions of the Revitusa terminal,” stressed the chairman of the KEVR Assoc. Ivan Ivanov at the meeting. According to him, the quantities from the Balkan Gas Hub auctions, together with those from Azerbaijan and supplies of liquefied natural gas, can provide favorable prices for Bulgarian consumers and fully cover the country’s needs.
KEVR’s decision to confirm the price of natural gas for the month of September is published on the website of the regulator.

The article is in bulgaria

Tags: Final price gas September

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