September 2 (SeeNews) - Bulgaria's utilities regulator said that it endorsed a wholesale price of natural gas for September of 353.63 levs ($179.93/180.80 euro) per MWh, as per the final request lodged on Thursday by public supplier Bulgargaz.
The estimated volumes for delivery by Bulgargaz were formed on the basis of three sources - the updated agreement with Azerbaijan for the supply of natural gas between July 1 and September 30, the agreed deliveries of liquefied natural gas (LNG) as well as the competitively-priced volumes secured under recent auctions on the Balkan Gas Hub, the Energy and Water Regulatory Commission (EWRC) said in a statement late on Thursday.
These quantities will cover the needs of end-suppliers, municipal heating companies and industrial users as well as provide natural gas for filling the underground storage facility at Chiren, the regulator noted.
In its request, Bulgargaz said that the price it sought was lower compared to prices of natural gas for September delivery on the European spot markets which exceed 232 euro ($231.58) per MWh.
"The lower price for Bulgarian consumers is due to the favourable conditions under the long-term gas supply contract with Azerbaijan. Some of the delivered quantities are at a significantly lower price, as they depend entirely on oil prices for a retroactive period of six months," the EWRC said.
The regulator expects the most favourable possible price for October once the Greece-Bulgaria interconnector is commissioned on October 1, allowing for further deliveries of Azeri gas at an exceptionally good price.
Bulgargaz also plans to participate in the slot reservation and regasification auctions at Greece's Revithoussa LNG terminal in 2023 to ensure future LNG supplies.
(1 euro = 1.95583 levs)