Azerbaijani gas gains greater role in Bulgaria's energy balance

The Energy and Water Regulatory Commission of Bulgaria (EWRC) has announced an increased role for Azerbaijani natural gas in the country's energy balance, according to a statement published on the regulator's website and reported by Caliber.Az.

EWRC revealed that the price of natural gas for February has been set at 84.34 leva per megawatt-hour (approximately $45), marking a 3% rise compared to January. The price structure includes the full contracted volume of Azerbaijani natural gas supplied via the Bulgaria-Greece interconnector (IGB) under a long-term agreement with Azerbaijan.

"These volumes are crucial for achieving a favourable price for blue fuel," the Commission stated, highlighting the strategic importance of Azerbaijani supplies in maintaining competitive energy costs.

The shift in Bulgaria's energy dynamics has also been influenced by technical issues at the Alexandroupoli LNG terminal in Greece. The terminal operator informed Bulgargaz EAD of partial, and later complete, restrictions on regasification capacities as of January 28. In response, immediate measures were taken to redirect planned supplies to a terminal in Türkiye, facilitated through an existing agreement with BOTAŞ.

"In this case, the role of natural gas supplied from Azerbaijan, which offers a more favourable price component within the supply structure, becomes even more significant," EWRC added.

Let's note that Azerbaijan has been a significant supplier of natural gas to Bulgaria in recent years. Deliveries commenced on December 31, 2020, following a contract between Bulgargaz and the State Oil Company of Azerbaijan (SOCAR) to supply 1 billion cubic meters (bcm) of gas annually for 25 years.

The Southern Gas Corridor, including the Greece-Bulgaria Interconnector (IGB) operational since October 1, 2022, plays a crucial role in these deliveries. The IGB has a capacity of 3 bcm per year, with potential expansion to 5 bcm.

By Khagan Isayev