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Bulgargaz proposes 5.9% hike in natgas price for Sept

Bulgargaz proposes 5.9% hike in natgas price for Sept Gas interconnector Greece-Bulgaria. Source: ICGB.

SOFIA (Bulgaria), August 15 (SeeNews) - Bulgarian public gas supplier Bulgargaz said it is requesting a monthly increase in the wholesale natural gas price applicable for September to 315.61 levs ($164.55/161.36 euro) per MWh.

Prices for September delivery on Europe's main spot markets as of August 10 exceeded 205 euro ($209) per MWh, Buglargaz said in a statement published by Bulgaria's Energy and Water Regulatory Commission (EWRC) late on Friday.

Earlier that day, the utilities regulator approved Bulgargaz's previously-requested 60% monthly jump in the wholesale price of natural gas for August to 297.89 levs per MWh.

The latest price proposal by the public gas supplier takes into account the quantities in the existing supply contract with Azerbaijan's state company SOCAR as well as an additional agreement to September 30 for Azeri gas delivery via the temporary gas station at Nea Mesimvria in Greece. The latter move is necessary because the Greece-Bulgaria interconnector was not commissioned as initially expected on July 1, Bulgargaz said.

Bulgargaz is also set to receive two deliveries of liquefied natural gas (LNG) to Greece's Revithoussa terminal, with the amount of final payments to be made to Greek operator DESFA for regasification, storage and delivery through its transmission network yet to be confirmed.

On Friday, the public gas supplier completed a natural gas auction on the Balkan Gas Hub, which secured 11,300 MWh per day, or all the intended additional quantities for September.

Earlier last week, Bulgargaz forecast a wholesale natural gas price of 269.29 levs per MWh in Bulgaria for October. The commissioning of the interconnector is expected to allow a reduction in the price of natural gas delivered from Azerbaijan.

The EWRC rules at the end of each month on the proposed change in the wholesale price, at which Bulgargaz sells natural gas to end-suppliers and customers directly connected to its transmission network.

(1 euro = 1.95583 levs)