February Brings a Drop in Bulgarian Natural Gas Prices

Energy | February 2, 2024, Friday // 10:16|  views


The Energy and Water Regulatory Commission (EWRC) has approved a substantial 8.4% reduction in the price of natural gas for February, setting it at BGN 71.08 per megawatt-hour (MWh). This significant drop from January's approved price of BGN 77.60 MWh is poised to bring tangible benefits to Bulgarian consumers.

State-owned distributor Bulgargaz will be the conduit for this lowered price, supplying natural gas to end-users and heating companies, as detailed in the regulator's press release on Thursday.

The EWRC's evaluation revealed that the total estimated quantity for the domestic market was sourced from three distinct suppliers. The February price mix encompasses the entire contracted volume of Azeri natural gas, supplied via the Bulgaria-Greece interconnector (IGB) under a long-term agreement with Azerbaijan. These volumes, covering 42.03% of the month's consumption, played a pivotal role in securing favorable prices.

Bulgargaz, through a tender process, secured a contract for the supply of liquefied natural gas (LNG) for February with a regional trader, adhering to minimum delivery price requirements and a proposed payment method. The price mix also includes natural gas volumes from production at the Chiren underground gas storage facility.

These secured quantities fulfill the public supplier's commitments for February, extending to final suppliers, district heating companies, and bilateral contracts with industrial customers, as highlighted by the EWRC.

EWRC Chairman Ivan Ivanov emphasized the broader implications of the natural gas price reduction, stating, "The reduction in the price of natural gas creates price benefits for all Bulgarian consumers - direct users of natural gas, customers of thermal energy provided by thermal power plants fueled by natural gas, as well as for businesses." He underscored the role of sustained low energy prices, including gas, as a potent anti-inflationary factor, supporting Bulgaria's quest to meet the criteria for eurozone membership.

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Tags: natural gas, prices, energy


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