Overgas Snubs State-Owned Bulgargaz in Contract Negotiations

Business » ENERGY | May 27, 2010, Thursday // 19:47| Views: | Comments: 0
Ovegas Snubs State-owned Bulgargaz in Contract Negotiations: Overgas Snubs State-Owned Bulgargaz in Contract Negotiations The CEO of Ovegas, the biggest Bulgarian private company in the field of natural gas, Sasho Donchev, says his firm will will enter the free energy market in 2011. Photo by BGNES

Overgas is not negotiating a new contract with Bulgargaz because it considers the the State company a parasite structure, the Ovegas CEO, Sasho Donchev, told reporters Thursday.

The contract for the supply of 1 billion cubic meters of natural gas expires at the end of 2010. A month ago, the Bulgargaz Director, Dimitar Gogov, said talks with the Russian Gazprom, which owes 50% of Overgas, for future supplies are stale.

Donchev explains that in 2011, his company will enter the free energy market and will deliver gas directly to consumers paying only the transportation fee to the State-owned transmission company Bulgartransgaz.

Bulgaria's government has stated for years now the need of a direct contract with Gazprom and of eliminating intermediaries in the gas supply.

The Overgas CEO is firm his company can cover the entire market in the country.

Gogov declined any comments, saying he is not officially informed about the decision of Overgas.

Bulgargaz EAD is a daughter company of the Bulgarian Energy Holding EAD, established in September 2008, by a decision of the then Minister of Economy and Energy from the former, socialists-led Three Way Coalition cabinet. Bulgargaz EAD possesses the only one natural gas public supply license that covers the territory of the country, issued by the State Energy and Water Regulation Commission

Overgas is the biggest Bulgarian private company in the field of natural gas delivering about 70% of the total volume of Russian gas in Bulgaria.

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Tags: Bulgargaz, Overgas, Bulgartransgaz, Bulgarian Energy Holding, Gazprom, Sasho Donchev, Dimitar Gogov
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