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Long-term contract with Azerbaijan reduces price of gas in Bulgaria by 11%


Bulgaria’s public utilities regulator has approved an 11.3 % drop in gas prices for January, Azernews reports, citing Bulgarian media outlets.

Bulgarian mass media say that the new price is set at 77.6 leva per MWh, excluding transport costs, excise duties and value added tax .

Bulgaria’s Energy and Water Regulatory Commission (EWRC) said that the long-term gas contracts with Azerbaijan, which are linked to the price of oil in the international markets, have caused the price of gas to fall in the country.

It was reported that Azerbaijani gas accounts for 40.3 % of the country’s monthly consumption, and EWRC evaluated this as a positive factor for achieving favorable prices. The rest of the consumption is provided by the state-owned gas company “Bulgargaz” under a contract for the supply of liquefied natural gas (LNG) and gas drawn from the country’s storage in Chirand.

It should be noted that in 2023, the supply of Azerbaijani gas to Bulgaria is expected to be close to 1 billion cubic meters. Gas supply to Bulgaria through the Greece-Bulgaria Interconnector (IGB) started two years ago. In 2021, 270 million cubic meters were supplied. In 2022, the supply was slightly more than 500 million cubic meters.

Azerbaijan currently supplies gas to Italy, Bulgaria, Greece, Romania and Hungary in Europe. Gas supplies to Serbia will begin in 2024. In addition, several European countries have expressed their interest in buying Azerbaijani gas.

IGB is the main route for transporting gas through the territory of Greece to Bulgaria and neighboring countries through the Trans-Adriatic Pipeline (TAP). IGB is the first to supply Azerbaijani gas to Bulgaria from the “Shahdeniz” gas-condensate field in the Caspian Sea. In the next stages, Azerbaijani gas will be able to be delivered to other countries of Eastern Europe. The capacity of the gas pipeline is 3 billion cubic meters, this year it is planned to increase it to 5 billion cubic meters as a result of modernization.

About Fidan Abdullayeva