Rosen Hristov: Bulgaria insists on a gas price ceiling of 150 euros per megawatt hour
Greece and Turkey are the most convenient countries for the supply of liquefied gas, and Italy may also have an exclusion, according to the energy minister
Photo: Dimitar Kyosemarliev, Investor Media Group
Bulgaria will insist on a gas price ceiling of 150 euros per megawatt hour, the Acting Minister of Energy Rosen Hristov announced to bTV. The topic has been widely discussed in recent months in the EU and 15 countries, including Bulgaria, insisted on the measurements in order to solve the gas crisis. The leading countries in this camp are France and Italy, but on the other side are Germany, Austria and the Netherlands.
According to Hristov, the price of gas is currently around 120 euros per megawatt hour, and an increase of about 30% in “any crisis situation” is sufficient. However, the European Commission has a completely different view of the case – Brussels’ proposal is for a ceiling of 275 euros per megawatt hour. This limit is so high because opponents of the idea fear that such a mechanism could worsen security of supply.
Financial stability concerns in the Eurozone as a result of the gas price cap even the European Central Bank (ECB) said.
TTF site reference shows that from the beginning of December the January contracts of gas is traded at a price in the range of 130-140 euros per megawatt hour.
On December 13, the energy ministers from the community will discuss the topic again, with several compromise options – at the Czech Presidency for a ceiling of 264 euros per megawatt hour, as well as in the Netherlands the measure to apply only to state-owned companies and those who have the obligation to maintain gas reserves. According to CNBC sources, a ceiling of 220 euros per megawatt hour is currently being discussed in the EU.
The minister’s energy comment and the possibilities for an arbitration deal between “Bulgargaz” and “Gazprom” against the suspended gas supplies. “The men taught me that if you go to court or arbitration, if 100% of the evidence is on your side, you have a 90% chance of winning the case,” Hristov said, adding that if you go to trial, it’s already a “difficult situation”.
A few days ago it became clear that “Bulgargaz” is in talks with a law firm, to assess the threats and chances of arbitrating the case. According to Hristov, the fact that other companies have continued to pay in rubles, and we have refused to worsen our positions. Bulgaria owes 10 million dollars for gas to Gazprom at the moment, the minister added.
Greece and Turkey are the most convenient countries for the supply of liquefied gas, commented Rosen Hristov. At the end of last week he was on a visit to Turkey and spoke with representatives of the Turkish company Botas on the supply of liquefied gas through these terminals in the Mediterranean. Turkey can also be a supplier of pipeline gas – flows from Azerbaijan, Iran, Russia pass through it, as well as liquefied gas from the USA, Qatar and other suppliers, he also commented.
In September, Bulgargaz launched a public order for the supply of pipeline gas for the period November 2022 – December 2023, but the procedure has been suspended. On the other hand, there is an expansion of the options for liquefied gas delivery traders – inclusion with options for delivery from terminals in Croatia and Italy, and the slots must be provided by the suppliers.
Rosen Hristov is in charge of ongoing talks on the supply of gas from Italy (virtual through swaps through the Trans-Adriatic pipeline), but added that it would be more of a shutdown to ensure even gas supplies.
At the moment, the procedure for evaluating the offers for the supply of liquefied gas for 2023 is underway, and in the spring the proposals for the trade for the supply of the raw material for the next 10 years – until 2034 will be considered.
Rosen Hristov also commented that Romania raised the issue of the discount of 25 cents on the price of gasoline in our country. The measure is discriminatory because it does not apply to European citizens who load in our country, the minister said. IN decision of the Council of Ministers it is stated that this compensation will cease at the end of the year.
As for alternative oil supplies The minister replies that in the long term the solution is an oil pipeline from Alexandroupolis to Burgas. He was adamant that the refinery could operate another five, which would require a production adjustment. The EC’s derogation regarding Russian oil is precisely for this – to set up production and ensure systematic supplies of oil, because the facilities cannot work to buy one day with one oil, and the next – with a different grade, added Rosen Hristov.