Bulgargaz Anticipates Liquefied Gas Deliveries via Alexandroupolis Terminal In May

Business » ENERGY | Author: Diana Kavardzhikova |April 18, 2024, Thursday // 11:28
Bulgaria: Bulgargaz Anticipates Liquefied Gas Deliveries via Alexandroupolis Terminal In May Pixabay

In a bid to enhance its energy security and diversify its gas supply sources, Bulgargaz is gearing up for the first deliveries of liquefied gas through the Alexandroupolis terminal, set to commence in May. The company's recent price application to the Energy and Water Regulatory Commission (KEVR) sheds light on its strategic maneuvers and forecasts for the upcoming months.

Bulgargaz, with Bulgaria holding a 20% share in the liquefied gas terminal, has secured assurances that the facility will commence operations by April 30. The company has reserved a substantial capacity of 10.6 million megawatt hours per year for supply purposes. Notably, Bulgargaz conducted an auction for liquefied gas supplies during the summer, ultimately opting for the offer presented by Total Energy Gas and Power, London. The operational framework of the terminal allows for contract quantities to be delivered progressively across different months, with a portion of the gas slated for injection into the gas storage facility in Chiren.

Aside from the deliveries via the Alexandroupolis terminal, Bulgargaz will continue to rely on pipeline gas shipments from Azerbaijan, which covered 52% of consumption in April. Such diversification efforts underscore Bulgaria's commitment to bolstering its energy resilience and reducing dependence on single-source suppliers.

In terms of pricing, Bulgargaz anticipates a slight dip in gas prices for May, projecting a decrease of approximately 2.3% compared to April, with a proposed rate of 57.50 euros per megawatt hour. This projection is based on market dynamics, concerning the Dutch exchange TTF, which stood at just over €27 per megawatt hour as of April 10. However, recent geopolitical tensions in the Middle East have triggered a sharp uptick in gas prices in the past few days, adding an element of uncertainty to the forecast.

The pricing for gas in May will be deliberated upon at an open meeting of KEVR in the ensuing days, with the final approval slated for May 1. Bulgargaz remains vigilant amid evolving market conditions, poised to navigate the intricacies of the energy landscape to ensure a stable and affordable gas supply for consumers.

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Tags: Bulgargaz, gas, delivery, energy

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