2024-03-14 22:09:15
Resigned Minister of Energy Rumen Radev indicated three main directions in which efforts should be made to reach a final agreement between Bulgargaz and the Turkish state energy company Botash during today’s meeting of the temporary committee of the National Assembly dedicated to to this question.
First of all, Radev optimized the capacity. “What we have repeatedly had in mind is to introduce seasonal unevenness, as this makes sense from a market perspective,” he pointed out, adding that it is normal for winter capacity to be higher.
In the opinion of the resigned minister regarding the daily fee, “Bulgargaz” should seek the absolute value and amount, i.e. have the opportunity to renegotiate not only the structure but also the value of these fees. As another important point in this point, Radev noted the possibility to pay a fee based on the transfer made, rather than a fixed fee.
The third factor, which, according to the resigned minister, should be paid attention to is that the validity period of the contract should be optional, BTA reported.
He added that in terms of penalties, it is embarrassing to have to pay a penalty for the entire duration of the contract as originally intended. In the opinion of the retired energy minister, the penalties should be symmetrical – the penalties that are applicable to one counterparty – “Bulgargaz” should also be related to “Botash”.
As the executive director of “Bulgargaz” Denitsa Zlateva confirmed, the talks are being conducted precisely in these directions. Radev expressed hope that visible progress will soon be achieved from these talks.
When asked to what extent the citizens bear the burden of the fee that is charged, Ivan Ivanov, chairman of the Commission for Energy and Water Regulation (KEVR), explained that KEVR only works with quantities that are actually transported and imported by “Bulgargaz” as a public supplier . “In connection with this, we introduce as a pricing element the fees that Bulgargaz pays for regasification, storage, access and transmission, only in the months when the regasification terminals in Turkey are used,” he added.
According to Ivanov, although the nominal capacity that is booked is significantly larger, only the actual quantities that are transferred are reflected.
Regarding the opinion of the commission on the discussed contract, the chairman of KEVR specified that it was not referred to the contract in order to give its opinion on it.
Denitsa Zlateva explained that “Bulgargaz” pays a total amount, which includes the value of a slot, regasification, storage, transmission and output point capacity. There is no breakdown of individual components in the agreement. “We cannot provide a breakdown, but the total capacity that Bulgargaz can deliver within one calendar year is 14 cargs. For them, Bulgargaz pays the corresponding fee and the “flexibility” component, because we pay for larger quantities, than we can actually deliver,” said Zlateva.
According to her, one of the points being negotiated with “Botash” is the structuring of the daily fee – firstly, to achieve its general lowering and secondly, that it be structured, as are the fees paid in other European operators, to individual components be valued. “These components should be based, on the one hand, on a fixed part, which is a capacity fee and a transfer fee, and the other part should be variable based on the cargoes actually delivered to the terminals in Turkey,” Zlateva pointed out.
She recalled that what the company does is to guarantee the tenders for the supply of natural gas, the origin of the natural gas and the security of supply.
The next meeting of the committee will be closed and a DANS hearing will be held at it.