Bulgarian regulator OKs 36% jump in Nov natgas price

The significant rise in the November "month ahead" price index on the European TTF gas hub, the higher volumes required for the upcoming heating season as well as the negative impact of military conflicts in Ukraine and the Middle East on market prices for natural gas were the major factors for the price increase, the Energy and Water Regulatory Commission (EWRC) said in a press release.

The price of natural gas in October was 60.41 levs per MWh.

Despite the unfavourable factors affecting the pricing of natural gas, the approved price is over 10% lower than that on the European gas markets for November, the regulator noted.

All contracted quantities of Caspian gas will be delivered from Azerbaijan via the Greece-Bulgaria interconnector, which will cover 35.64% of the country's energy consumption for the current month.

Additionally, Bulgargaz has signed contracts with three traders from the region for the delivery of liquefied natural gas (LNG).

Although the gas supplied from Azerbaijan in the winter months decreases as a relative share of the overall quantities, its price is not tied to international gas markets and therefore its role in the mix ensures significantly lower prices for Bulgarian residential and industrial consumers compared to other European countries, EWRC head Ivan Ivanov said.

Earlier in the day, Bulgargaz lodged a definitive price proposal of 82.12 levs per MWh, significantly higher than the 67.27 levs per MWh which the public supplier forecast in mid-October.

(1 euro = 1.95583 levs)