site.btaEnergy Minister Takes Questions about Disrupted Power Supply in Storm-hit Areas, Natgas and Talks with Gazprom

The situation in the Black Sea Burgas area after a devastating storm on Saturday, is bad and the damage is serious, Energy Minister Rosen Hristov said on bTV. He took questions from viewers during a Sunday talkshow and also spoke about supply of natural gas and the talks with Gazprom following the suspension of supplies in April.

In the Burgas area, power supply has been restored in almost the entire region through alternative sources and work to restore the broken transmission lines will start Monday.

“We are working hard on tenders for gas supplies, which we will announce soon”, Hristov added. 

At the same time, communication continues with Gazprom “so that our needs can be fully met”, said the Minister. Based on that communication, about a third of Bulgaria's gas should come from them. Communication is slow, their response was that they are ready to discuss our demands, but there is no result yet, the energy minister added.

Bulgaria has proposed to take all quantities of natural gas that have been contracted with Gazprom – but extend into 2023 the period during which it can use it.

Gazprom cut off supplies to Bulgaria in April after Sofia refused to pay in roubles.

Hristov said that there was no unambiguous answer to the question of who broke the contract: Gazprom or Bulgaria, and added that Bulgaria does not want to go to arbitration. “This step is risky and expensive and the outcome unclear,” Hristov added.

The gas price for October is BGN 250/MWh and if all talks are successful, it should fall further, he said.

No gas supplies have been contracted for November and December, which is why tenders are starting, the minister added. The bids we are getting now are lower than the ones we had with the Scheniere tankers. “We can ensure gas supplies but the question is about price.”

“We use all the profits that the state energy companies generate to compensate consumers,” he said. 

He added that the Lukoil refinery in Bulgaria have agreed to lower fuel prices and talks are still under way.