August 22 (SeeNews) - Bulgaria decided to accept only part of the liquefied natural gas (LNG) deliveries offered by US energy company Cheniere, as it failed to negotiate delivery slots at favourable prices for the full amount, caretaker energy minister Rossen Hristov said.
Bulgaria will receive only one tanker of LNG after negotiating a competitive price for the slot in Turkey and the offer for the remaining six tankers, four of which were due to arrive early in 2023, was dropped, Hristov said in a statement on Friday after the expiry of the binding offer's deadline.
Earlier this month, Bulgaria requested an extension to signing the contract with Cheniere in order to secure slots for offloading the LNG tankers at the Revithoussa terminal in Greece, but such a delay was not granted.
The US company's binding offer for seven LNG tankers foresaw three to be delivered by the end of 2022, starting in October.
The final deal ensures one-third of the country's gas consumption needs for October, with the second third to be covered by deliveries of natural gas from Azerbaijan, the energy minister added.
The government is exploring options for securing the final third of the required volume for the month and beyond, with interest registered from Turkish suppliers. Talks are due to start next week with Azerbaijan for increasing the delivery quantity.
Bulgaria's contract with Azerbaijan stipulates the delivery of 1 billion cubic metres (bcm) of gas, but any quantities above that are dependent on the commissioning of the Greece-Bulgaria gas link.
"From now on, our efforts will be focused on signing medium-term contracts to cover consumption during the upcoming winter period," Hristov said, adding that piped gas is preferred as it provides better security of supply. As a possible long-term option, the ministry of energy is also considering potentially taking part in the 2024 slot allocation auctions at the terminal on Revithoussa, which would make possible the purchase of additional LNG available.
Bulgaria has a long-term contract with Russia's Gazprom, which expires at the end of 2022. It has not received Russian gas under the contract since late April when it refused to pay for it in rubles.
The opponents of the caretaker government appointed by president Rumen Radev have voiced concerns that it is looking to resume gas deliveries from Gazprom.