Bulgargaz EAD came out with opinion on the provision of the necessary natural gas after the suspension of gas supplies by Gazprom Export.
The company points out that after the notification of “Gazprom Export” from April 26, 2022 to suspend supplies, Bulgargaz has taken immediate action to provide gas to its customers under supply contracts. The company reminds that they are initiated correspondence with Gazprom Export in order to clarify specific details of the proposed new mechanism for making payments under the contract between the two countries.
“As a result Gazprom Export shows reluctance for trade dialogue to reach mutually acceptable solutionsin order to fulfill the bilateral obligations under the contract and to terminate the supply of natural gas to the Bulgarian side “, Bulgargaz points out.
Gazprom suspends gas supplies to Bulgaria
On April 26, Bulgargaz submitted a written request to natural gas traders operating on the Bulgarian and regional gas markets to submit offers that would include specific conditions for the supply of natural gas by the end of April and for May 2022. .
Inquiries regarding the possibility of supplying natural gas in volumes necessary to satisfy the consumption of the Bulgarian consumer after the termination of those under the long-term contract with Gazprom Export, up to 12 active traders were sent to the market in Bulgaria and neighboring countriesthe company clarifies.
Some of the companies informed that they were not able to submit proposals for the specified period. After an analysis of the submitted proposals, seven offers from three suppliers were ranked under the criterion of “lowest delivery price”, Bulgargaz said. The bids were ranked according to the terms of Bulgargaz EAD and until the necessary quantities are provided in order to fulfill the binding applications submitted by Bulgarian customers for May 2022 and ensure security and continuity of supply, the company added.
The Russian embassy in Bulgaria showed a scheme for paying for gas
In order to provide additional quantities in April 2022, Bulgargaz realizes transactions for the purchase of quantities on the organized stock market in the country.
With regard to the allegations that intermediaries are being used, it should be clarified that even in the current situation, Bulgargaz EAD provides alternative quantities of natural gas through supplier companies, such as Gazprom Export, indicated by the company. From there they specify that usually the producers are separate companies from the suppliers, with clearly differentiated activities – extraction and production, respectively trade and delivery.
The quantities are provided by established companies operating not only in the Bulgarian and neighboring gas markets, with a proven good commercial reputation and a wide portfolio.according to Bulgargaz.
Kremlin: If you pay in rubles, you will get Russian gas
Regarding the speculations about the prices at which these transactions were realizedit should be borne in mind that even if Bulgaria had accepted the request of the Russian side to use a mechanism to pay for natural gas supplies other than that agreed in the contract, the price would most likely undergo unpredictable changes, given the lack of clarity about the exchange rate and the lack of opportunity of the Bulgarian side to exercise control in the currency conversion process, set in the proposal of “Gazprom Export”, specified by “Bulgargaz”.
In order to limit the consequences of Gazprom Export’s actions, Bulgargaz has taken all necessary actions, which do not contradict the Bulgarian legislation, to ensure the integrity of the country’s gas transmission system and the continuity of supply to Bulgarian domestic and industrial consumers.point out the company.
