Nachev: The Bulgargaz mechanism for gas supply in Bulgaria is being encroached upon
Fears that the Bulgar mechanism, which supplies natural gas to Bulgaria, will be destroyed, are due to the opposition between Dondukov 1 and Dondukov 2, not the personal change. That’s what he said energy expert Vasko Nachev in the show “Investor Club” on Bloomberg TV Bulgaria with host Ivaylo Lakov.
“It simply came to our notice then the chain of persons directly or indirectly involved in the supply of natural gas in our country, where openly, where hidden. The new person, in the case of Prime Minister Petkov and the team, is encroaching on the Bulgargaz mechanism. From here comes this frantic howl, you see, it’s outside the rules, that it’s probably the most profitable company and with the best CEO and everything is “the best”, and it is encroached upon. That’s cool. “
Bulgargaz did it for a year the firm statement that cheaper gas is not imported from Azerbaijan because there was no route, but it turned out that there was a route and that the Azeris did not mind delivering on this route. But significantly smaller quantities were ordered and even one hundred percent of them were not imported, said the guest. “At that time, we were under a long-term contract with Gazprom Export fulfilled all commitments and we imported 44% of gas from them. It doesn’t matter, as the executive director of Bulgargaz says, in this situation he had to leave in a second. ”
For the head of BEH, who was also replaced, “nothing was said”, but “for Nikolay Pavlov the roars are to heaven. Why is that? My reading is that someone is pressuring that the mechanism will be violated, not because Pavlov will lose his job a great deal of naivety to consider that the person is protected, the person as irreplaceable “, the energy expert commented.
“I strongly hope” the mechanism is threatened, not to install a new mechanism, but to have no more hidden mechanisms, the guest said.
“I saw two things from the new government – one is wandering, the lack of capacity, the potential, but the second is that there is a desire for change. No one was born a scientist, but the desire for change is evident and I very much hope that this activated one will be destroyed, which has been around for many years. “
The question of how it becomes possible from the first of February the price of gas to fall by 18% the guest said that this is also due to the poor management of Bulgargaz, because even with the price increase at the very beginning of 2022, it was clear that the price of gas would fall. “If there is good management of a company that deals with public procurement with gas supply, even more so a supplier, he had to hedge. This will be a relief for both end users and the business as a whole. ”
It’s all about buying Russian gas and moving money on this page – “it’s not difficult to make such a reading, there is no other description.” Financial expression is the loss of “hundreds of millions”.
Bulgargaz’s agreement with the Azeris is until June 30. Then we have ordered quantities. From July 1, you must order new quantities, such as I expect the price to be less favorablebecause the price of oil will not go down, unlike the price of gas. Azeri gas, because its formula is through oil derivatives, will become unprofitable. But I have a contract and we have to take it. ”
Until July 1 interconnector with Greece it must be ready, because otherwise Bulgargaz will have to think about how to fulfill the contract with the Azeris on the alternative route, Nachev added.
About the Greek liquefied gas terminal, in which Bulgaria has a 20% share, the guest said that it should be ready at the end of 2023, and now the deadline is 2024. “When it is completed, I will have another level of diversification, because until the terminal is built, the only option is the Trans-Adriatic Pipeline and Komotini-Stara Zagora. We have no other option.”
“However, when the terminal is built, we will be able to import liquefied gas, where it is beneficial to us and with whom we sign a supply contract and really we are getting real diversification. “
It is one of the reasons this project has been going on for so many years, because the Turkish stream has to be built before it, so that there are no real opportunities for other participations and then already, who wants to build what he wants. The capacity of Turkish Stream has been reserved for many years to come, Nachev said.
The topic of the gas storage in Chiren has been chewing for a very long time and apart from spending money, nothing else is happening, the interlocutor said. “During these 10 years, two boreholes were drilled and this was not to expand, but to increase the daily capacity during operation. Expansion of Chiren is not an easy task, but it is very clear – my area, which is flooded and where new drilling needs to be done, they should be literate and expand storage capacity. But this is not being done. ”
With oil the situation is delicate, the guest commented. “I don’t think the price will reach $ 100, and if it is reached, it will be to test how sustainable the market will be. OPEC members have a bitter experience if you go too high and I don’t think you will allow such an option.” .
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All guests of the show “Investor Club” can watch here.