Bulgaria does not rule out gas price talks with Russian gas giant Gazprom, but has yet to decide whether to renegotiate gas contracts due to expire in 2010, Bulgaria’s economy and energy minister said last Monday. Rumen Ovcharov’s comments contrast with his earlier statement that any review of Bulgaria’s current gas delivery contracts with Gazprom would be “unacceptable.”
Russian natural gas monopoly Gazprom, which provides about 97 percent of Bulgaria’s gas supplies, has asked state provider Bulgargaz to start talks on a possible price increase. If Bulgaria accepts Gazprom’s request for a review, gas prices could rise gradually, but if it rejects the request, the country could face a sharp price increase once the current contracts’ expire, Ovcharov said. “There are many options — early (gas price) increase, delayed increase, increase after 2010,” Ovcharov told reporters yesterday. “All this has to be carefully examined with a view to our interests, and then discussed with the Russian side.”
Gazprom sells natural gas to Bulgargaz for a reduced price of US$83 (68 euros) in exchange for using pipelines that cross Bulgaria to ship gas to Turkey, Greece and the Former Yugoslav Republic of Macedonia. Bulgaria also buys gas under a direct delivery deal, whereby prices depend on currency fluctuations and international oil prices. The current price is US $257 (212 euros) per 1,000 cubic meters. Ovcharov said the government would begin consulting business leaders on possible gas price talks with Gazprom. “Bulgaria will not take any action... without taking into account the opinion of major gas-consuming businesses,” he said.