site.btaUPDATED National Gas Distributor Bulgargaz Launches Three Calls for Delivery of LNG

The state-owned gas distributor Bulgargaz Tuesday invited three bids for the delivery of liquefied natural gas (LNG): one bid for a short-term delivery of 1.5 million MWh for November and 2 million MWh for December, another bid for an annual delivery of 6 million MWh during the entire 2023, and a long-term bid for 10.6 million MWh annually for the period 2024-2034, Bulgargaz Executive Director Deniza Slateva said, speaking at a news conference with caretaker Energy Minister Rossen Hristov.

Hristov said that the bids mark the start of the genuine diversification of the system with "maximum competitiveness, total transparency, and seeking the best prices". 

Hristov said that the genuine diversification will make it possible to provide gas volumes which are 130% to 150% above the domestic needs. "This will allow the easy switching between suppliers in a critical situation. Alongside this, talks are underway on increasing the supplies of gas under the agreement with Azerbaijan. The talks with Gazprom continue, with no progress at the moment. We are not closing the door to anyone," Hristov said.

Slateva said that the bidding procedures will have three stages while the long-term one will last six months. Stage one will be selection of candidates, stage two submission of offers and stage three, ranking of the bids. 

The best possible price terms and conditions will be sought after, while a new approach will be demonstrated in the conduct of the procedures with strict observance of confidentiality and deadlines, to the hour, she said. The final approval will be issued by the Electricity and Water Regulatory Commission. 

The Energy Minister also said that talks are being conducted to provide additional slots at gas terminals in Turkey in 2023. Bulgaria will also take part in the annual bidding for slots and for re-gasification in 2023 at the Revythousa terminal in Greece. 

Speaking in Sevlievo, Northern Bulgaria, later on Tuesday, President Rumen Radev said that the announcement of Bulgargaz's biddings "puts an end to the ineffective practice of agreeing LNG shiploads without bidding and without clarity as to who and how chooses suppliers and determines prices". "Only with openness, transparency and a level playing field for all suppliers it is possible to achieve diversification, competitiveness and the best conditions for Bulgaria, to look for a strategic long-term partnership which will undoubtedly have an impact on LNG prices this year, instead of month-by-month solutions," Radev said. 

The President further noted an agreement signed between Bulgargaz and Gastrade on guaranteeing 1 billion cu m of LNG from the terminal in Alexandroupolis, stressing that the efforts continue "to resolve the hardest of problems: ensuring LNG slots until the end of the year". Radev said that the better chances of reserving these slots in the spring had been squandered. "The efforts continue and I hope that the gas interconnector between Bulgaria and Greece will be completed on time," Radev said.