Bulgaria: The Price for Natural Gas for August will be of 59.67 Leva per megawatt hour

Energy | August 1, 2023, Tuesday // 17:37| views

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The Commission for Energy and Water Regulation (EWRC) confirmed the price of natural gas for the month of August in the amount of 59.67 leva/MWh, excluding access, transmission, excise and VAT prices. At this price, "Bulgargaz" EAD will sell natural gas to final suppliers and to persons who have been issued a license for the production and transmission of thermal energy.

The approved price is 1.4% lower than in July, which was 60.58 leva/MWh, and it coincides with the price offered earlier today by "Bulgargaz".

The regulator found that the total estimated quantity for the domestic market was provided by two different sources of supply. The price mix for August includes the entire agreed amount of Azeri natural gas delivered via the "Bulgaria-Greece" (IGB) interconnector, according to the current long-term contract with Azerbaijan. These amounts cover 74.66% of consumption for the month and are of key importance in achieving favorable prices for blue fuel.

The EWRC also indicated that "Bulgargaz" concluded a contract for the supply of liquefied natural gas (LNG) with a trader from the region for August, after a tender procedure, with requirements for a minimum delivery price and a proposed method of payment.

The secured quantities cover the commitments of the public supplier for August both to final suppliers and heating companies, as well as the quantities under bilateral contracts with industrial customers.

At the held open meeting, EWRC chairman Assoc. Ivan Ivanov commented that the initial estimates predicted a 3% increase in the price of the blue fuel, but after the price drop on the Dutch stock exchange began in the last three weeks, this trend changed in a favorable direction.

Chart of TTF gas futures on the Dutch exchange (in EUR/MWh)