Bulgaria, Bulgargaz is has proposed higher wholesale natural gas price to be applied in December

, SEE Energy News

Bulgarian state-owned gas supplier Bulgargaz is has proposed higher wholesale natural gas price to be applied in December 2021.

The statement from the company said that the price for December should be around 49.2 euros/ MWh, which is 3.2 % higher compared to the price approved for November – 47.6 euros/MWh, which was a decrease of 1.4 % compared to October.

Bulgargaz also said that it plans to propose a decrease in the wholesale price of gas to 47.6 euros/MWh in January 2022.

KEVR’s decision to decrease the price in November took into account an agreement reached between gas supplier Bulgargaz and Russian Gazprom Export for deliveries of gas volumes during November that were not received in previous periods and will be paid for by Bulgargaz at a significantly lower price compared to current market prices on European gas hubs, which leads to a significant reduction in the price mix for the Bulgarian market.

In March 2020, Bulgargaz and Gazprom Export have finalized an agreement on 40.3 % reduction of the price at which Russia supplies natural gas to Bulgaria, backdated to 5 August 2019. Bulgaria was the last of eight EU Member States of Eastern Europe to strike a deal on a price cut with Gazprom, in the wake of a settlement reached between the European Commission and the Russian monopolist on an anti-trust investigation.

The agreement with Gazprom prompted the change in determining regulated wholesale gas prices, which is now set on monthly, rather than quarterly basis.