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Bulgaria to open LNG tender to ward off gas shortages

Bulgaria’s energy ministry will launch a tender next week for liquefied natural gas (LNG) to prevent shortages during the peak demand winter season, caretaker Prime Minister Galab Donev said on Thursday.

The European Union’s poorest member state met more than 90% of its gas needs from Russian gas imports until April 27, when Russia’s Gazprom GAZP.MM turned off supplies after Bulgaria refused to meet Moscow’s demand for payment in roubles.

“Next week the energy ministry will announce a tender for short-term deliveries of liquefied natural gas so that consumption until the end of the heating season be secured,” Donev told the first meeting of his administration.

Bulgaria consumes about 3 billion cubic meters (bcm) per year of gas, one third of which goes to heating utilities. Industry uses most of the rest.

At present, the country receives about 1 bcm a year from Azerbaijan and buys the remainder on spot markets, where prices have surged.

State gas provider Bulgargaz in response is seeking regulatory approval for a 60% increase in gas prices for August to 152 euros ($154.72) per megawatt hour.

Across Europe, countries are working to fill stores ahead of winter as Western sanctions on leading gas exporter Russia have led to supply disruption following Moscow’s invasion of Ukraine, which it terms a “special military operation”.

Donev set up a task force to deal with the issue of gas supplies and said his government would not need external consultants for the job.

The previous government had secured seven shipments of U.S. LNG from October to April, in total about 1 bcm of gas, but has left Donev’s government to decide by Aug. 19 whether to confirm them.
Source: Reuters (Reporting by Tsvetelia Tsolova; editing by Barbara Lewis

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