Some 11% cheaper Russian gas to Bulgaria expected as of 2013

Natural gas prices will surely fall as of January 1, 2013 after the signing of the new contracts for natural gas supply, Chairman of the State Energy and Water Regulatory Commission (SEWRC) Angel Semerdzhiev predicted. Such a reduction can be expected on the basis of the announced 11% reduction in the price of natural gas, which will enter into force upon the signing of the contract for the South Stream gas pipeline, he said. On this basis, Semerdzhiev reckons that central heating will also become cheaper. According to SEWRC, there is a possibility for a reduction by half of that rate because the obligations of heating companies to Bulgargaz need to be guaranteed.

Earlier this morning, Energy Minister Delian Dobrev told TV7 that a new contract for the supply of gas after January 1, 2013 is currently being negotiated, under which there will be no mediators and our country will have a contract with Gazpromexport only. Lower prices of fuel will also be negotiated. The Minister hopes that the contract will be for six years only, instead of 10 or 20, so that our country will be able to respond flexibly if the situation changes and in case alternative sources, such as gas from the Black Sea and the Caspian Region, emerge and Bulgaria can use cheaper fuel.

At the same time, however, President of the Russian gas giant Gazprom Alexey Miller announced officially that the start of the gas pipeline will be on December 7 near the Russian city of Anapa. Bulgaria does not associate the acceptance of the final investment decision for its section of the South Stream gas pipeline with an adjustment of the prices of Russian gas, Miller said, cited by ITAR-TASS.

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