Bulgaria, Bulgargaz negotiating with the Energy Ministry on new loan

, SEE Energy News

CEO of state-owned natural gas supplier Bulgargaz Deniza Slateva said that the company is holding talks with the Ministry of Energy and Bulgarian Energy Holding (BEH) for a new loan to cover current liabilities.

In early August, the caretaker Government already approved a loan worth some 410 million euros for Bulgargaz in order to pay for gas supplies and gas volumes that are being injected into Chiren gas storage.

By 20 September, Bulgargaz’ liabilities will amount to almost 700 million euros, including payments to three suppliers for gas deliveries in August and September and one LNG cargo in October. The new loan will not cover the entire amount, outstanding liabilities will be partially paid using Bulgargaz’ own funds and the proceeds of the first state loan.

Slateva said that Bulgargaz’ business model has changed since April. It went from secured long- term supply from two suppliers (Russia and Azerbaijan) to current month-to-month model, adding that the company is heading towards bankruptcy if this continues.