Bulgaria to Achieve Nearly 5-Fold Increase in Local Gas Production in 10 Years

Energy | August 13, 2013, Tuesday // 16:22|  views

Kiril Temelkov, CEO of state-owned gas transmission operator Bulgartransgaz, photo by dariknews.bg

Bulgarian state-owned gas transmission operator Bulgartransgaz expects domestic production of natural gas to increase nearly 5-fold in 10 years.

Kiril Temelkov, CEO of Bulgartransgaz EAD, presented Tuesday to members of the State Commission for Energy and Water Regulation (DKEVR) a 10-year plan for the development of the gas transmission grid.

The plan cites forecasts about a several-fold increase in local production of natural gas.

While domestic gas production in 2013 is expected to amount to around 250 million cubic meters, the output is to reach up to 1300 million cubic meters in 2015 and up to 1520 million cubic meters in 2025.

"Our expectations are based on the plans submitted by gas production companies. It is also of crucial importance how exploration activities in the Black Sea will proceed, but we have not yet made a final forecast about the gas quantities which could be extracted there. The forecast includes the anticipated output from the Galata and Kaliakra gas fields, which are already functioning, as well as the Deventsi gas field, where commercial gas production is to start soon," he explained.

"The entire 10-year period is fully adapted to the regional plans made on an EU-level," Temelkov emphasized.

The CEO of Bulgartransgaz also noted that Bulgaria's gas consumption was expected to increase.

He informed that gas consumption in Bulgaria was likely to have doubled by 2022 under an optimistic scenario.

Temelkov said that the gas transmission operator expected enhanced investment activity aimed at gas supply diversification over the next few years.

He commented that securing gas supply diversification opportunities and achieving a competitive environment on the gas market would result in a decrease in gas prices.

He added, however, that if gas prices headed upwards on a global scale, Bulgaria would be unable to reduce local gas prices through diversification.

Temelkov made clear that the main portion of investments had been earmarked for the first five years of the 10-year period.

"In the 10-year plan, we plan the construction of the gas grid interconnection with Turkey, whose system has 6 entry points from different directions. We also plan to build a gas grid interconnection between Bulgaria and Greece," he said.

The CEO of Bulgartransgaz pointed out that the company was working on an entry-exit transmission tariff which would be fully implemented by end-2013.

He underscored that the new pricing model would not introduce substantial changes to transmission fees.

Temelkov said that Bulgaria's energy watchdog had reviewed the application of Bulgartransgaz for the company to be certified as an independent gas transmission operator at a Tuesday sitting.

"This is yet another guarantee that we are providing a competitive gas market," he concluded.

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Tags: Bulgartransgaz, Kiril Temelkov, natural gas, diversification, gas field, gas grid interconnection, gas exploration


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