Petyo Ivanov, CEO of Bulgaria’s state-owned gas supplier Bulgargaz, has said that gas rates are expected to drop by around 13% from April, with a possibility for a new price decrease of up to 10% in July.

Ivanov told the Bulgarian National Radio that a new price decrease of up to 10% in the third quarter of 2015 was likely, provided that crude oil prices and the USD-BGN exchange rate remained at the current levels.

He also said that Bulgaria’s local gas production had decreased from a rate of 16% to 4%.

The CEO of Bulgargaz made clear that the quantities of locally produced natural gas earmarked for the domestic market were decreasing compared to the first years of exploitation of the gas fields.

Ivanov explained that Bulgargaz would start buying gas for the Chiren underground storage with its own money, with the total amount being around 280 million cubic meters.

“We will also work to find alternative forms of financing, including by announcing a procedure for a lending institution,” he said.

He pointed out that the debts of thermal power plants to Bulgargaz amounted to BGN 270 M at present, including a total of BGN 190 M owed by Sofia-based heating utility Toplofikatsiya-Sofia.