Bosnia: The lowest wholesale natural gas price in the last 10 years

, SEE Energy News

Start of the 2016/17 heating season in the Federation of Bosnia and Herzegovina (FBiH) will be marked by the lowest wholesale price of natural gas in the last 10 years, which amounts to 230.16 euros per 1,000 cubic meters, according to BHGas.

Statement from the company said that the price of gas should remain unchanged until the end of heating season, and eventual corrections in price could be only caused by drastic increase in Russian gas prices, which is not likely to happen by spring 2017. Due to low prices, BH-Gas expects an increase in gas consumption during this winter, mainly by Sarajevogas and other distributors.

However, an increase of gas consumption by industrial consumers is not expected, especially as those consumers have switched to alternatives such as fuel oil due to high natural gas prices in the past years.

After signing an annex to the agreement with Hungarian FGSZ, BH-Gas increased the guaranteed daily gas deliveries to Bosnia and Herzegovina from 1.05 million cubic meters to 1.5 million cubic meters of gas per day. This amount should be sufficient to cover the needs of Sarajevogas and other customers as well.