Today.Az » Business » Gas price in Bulgaria drops with IGB launch
05 October 2022 [11:53] - Today.Az

By Azernews

By Ayya Lmahamad

The wholesale price of gas in Bulgaria dropped by 34 percent with the launch of the Interconnector Greece-Bulgaria (IGB), which transports Azerbaijani gas, Azernews reports, citing the Energy and Water Regulatory Commission of Bulgaria.

The regulatory commission approved the wholesale price of natural gas for October at 233.36 leva ($116.93) per MWh, down by 34 percent from the previous month.

"The significantly lower price for the month of October is due to the very competitive price conditions under the long-term contract for the supply of natural gas from Azerbaijan. The price of the supplied quantities is formed entirely by oil quotations for a period of 6 months ago and does not depend on the dynamics of exchange prices on the European gas markets," the statement reads.

The opening ceremony of the Interconnector Greece-Bulgaria was held in Komotini on July 8, while a ceremony to inaugurate the (IGB) was held in Bulgaria on October 1.

Earlier, it was reported that Azerbaijan will export about 600 million cubic meters of gas to Bulgaria by the end of 2022. Bulgarian Energy Minister Rosen Hristov then said that negotiations are underway to increase gas supplies from Azerbaijan to Bulgaria, at least for the heating season, for another 200-300 million cubic meters.

The IGB gas pipeline is designed to connect the Greek national gas transmission system (DESFA S.A.) and the Trans-Adriatic gas pipeline (TAP AG) in the area of Komotini (Greece), and with the Bulgarian gas transmission system (Bulgartransgaz EAD) in the area of Stara Zagora. The total length of the gas pipeline is 182 km, the diameter of the pipe is 32'', and a design capacity of up to 3 billion m3/year in the direction of Greece-Bulgaria.

The pipeline is designed to increase its capacity up to 5 bcm/y depending on market interest and the capacities of neighboring gas transmission systems.

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