03.08.2022
Prime Minister Galab Donev has set up an interagency crisis management headquarters for the energy sector. The HQ’s task is to propose as follows: solutions for curbing the chaos and disintegration within the sector; solutions for the security of supply and the predictability of the gas prices; mechanisms for control and reduction of fuel prices and the electricity price. At a press conference in the Council of Ministers building, the Prime Minister announced that the interagency crisis management headquarters will operate nonstop and that he will be personally in charge of the supervision over the fulfilment of the tasks assigned. Hristo Aleksiev, Deputy Prime Minister for Economic Policies, will be the head of the headquarters. Its other members will be the Minister of Energy Rosen Hristov, officials from other ministries, industrial associations, the State Agency for National Security (SANS), the Energy and Water Regulatory Commission (EWRC), employers’ organizations and trade unions.
The huge amount of information that has been analyzed shows that the gas supply situation is serious and even critical, Energy Minister Rosen Hristov said at the press conference. The Minister underlined that contrary to expectations, we are facing a shortage of contract gas supplies by the end of the year. In addition, the seven tankers that were announced as having been negotiated have not actually been negotiated and the process is in the phase of an offer that comprises three tankers due this year and an option of the remaining four tankers next year. Unloading slots have not been secured at gas terminals, Rosen Hristov said further. The Energy Minister said that ways should be found to purchase free slots, however, this would additionally increase the price of the gas delivered to Bulgaria. At the same time, the Azerbaijani gas price that was announced to be fourfold lower has gone up several fold for two-thirds of the contract volumes. Moreover, the company Bulgargaz has been hit by a financial crisis and cannot afford to pay even for these contract volumes.
To address the current critical situation, Minister Rosen Hristov said that the Ministry will move to a 24/7 schedule. All resources have been tapped so as to solve the problems in a short term. Preparations for bids are under way for the supply of liquefied natural gas that will help meet the country’s needs until the end of the heating season. Also, ways are being explored to refinance Bulgargaz EAD and to negotiate a price reduction in the general gas supply mix.
Speaking at the press conference, Prime Minister Galab Donev assured the Bulgarian citizens and the Bulgarian businesses that the caretaker government would do its utmost to ensure the security of gas supplies for the country and the predictability of prices and to reassure the general public that there would be gas throughout the heating season.
