Bulgargaz, the national gas company, projects a notable reduction in natural gas prices by nearly 6% for February. The company has submitted an application to the Bulgarian energy regulator outlining the expected change in pricing.

According to Bulgargaz's calculations, the upcoming month could see natural gas priced at BGN 73 per megawatt hour, excluding taxes and levies. The anticipated price adjustment considers various factors, including quantities from the long-term contract with Azerbaijan and liquefied natural gas acquired through auctions. Additionally, plans include the utilization of gas from the storage facility in Chiren.

As of now, Bulgargaz reports that a finalized schedule for 2024 regarding the extraction and injection of natural gas in Chiren is pending. The application includes an estimated storage schedule for 2024 based on a contingency plan, which will be updated following the signing of a storage, access, and injection contract with Bulgartransgaz.

It's important to note that the calculated 6% discount is subject to change, and the final proposal will be submitted by Bulgargaz on February 1, pending approval by the Energy and Water Regulatory Commission.

The evolving situation in the Red Sea region further complicates the pricing scenario. The recent escalation of the conflict in the area has led some liquefied natural gas tankers to divert from this route, potentially causing delays and increased expenses for supplies.