Bulgargaz Forecasts 5-6% Dip in Natural Gas Prices for May

Business » ENERGY | April 29, 2024, Monday // 13:04
Bulgaria: Bulgargaz Forecasts 5-6% Dip in Natural Gas Prices for May

Bulgargaz, the leading public gas supplier in Bulgaria, anticipates a notable decrease in the price of natural gas for the upcoming month of May. According to Lyudmila Vitanova, head of the company's pricing department, the expected reduction could range between 5 to 6% compared to the current rate, currently set at BGN 58.84 per MWh (excluding access, transmission, excise, and VAT).

The announcement came during a session of the Energy and Water Regulatory Commission (EWRC), where Bulgargaz presented its proposed gas price for May. EWRC Chairman Ivan Ivanov highlighted a delay in the commercial operation of the Alexandroupolis liquefied natural gas terminal, which could affect gas deliveries to Bulgaria by approximately 20 days. This delay prompted concerns about meeting gas supply demands for the upcoming month.

In response to Ivanov's inquiry about the company's contingency plans, Vitanova explained that Bulgargaz had been notified by the terminal operator, Gaztrade, about the delay in commercial operations. As a result, Bulgargaz initiated an auction on the Balkan Gas Hub platform to procure additional volumes of gas to fulfill customer requests. The auction is scheduled for April 30, with Vitanova emphasizing that regardless of its outcome, Bulgargaz expects the May gas price to fall within the range of BGN 55 to 56.

The EWRC is set to convene a closed-door session on May 1 to deliberate and finalize the gas price for the upcoming month, taking into account Bulgargaz's proposal and prevailing market conditions.

The anticipated decrease in natural gas prices for May could offer relief to consumers and businesses, potentially translating into lower energy costs and enhanced economic competitiveness. However, uncertainties surrounding gas supply and market dynamics underscore the importance of vigilance and proactive measures to ensure energy security and stability.

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Tags: Bulgargaz, prices, energy, gas

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