The Bulgarian state-owned gas import company Bulgargaz wrote to the State National Security Agency (DANS) to report that competing interests seek to sabotage by jeopardizing the agreement between Bulgaria and Azerbaijan on importing 1 billion cubic meters of gas per year, Report informs referring to EURACTIV Bulgaria.
According to the letter, Bulgargaz tells DANS about its fears that in violation of trade secrets, interested parties had disclosed confidential information about its contract with Azerbaijan Gas Supply Company (AGSC) from 2013.
This, according to Bulgargaz, entitles Azerbaijan to terminate its contracts with Bulgargaz. The contract for importing 1 billion cubic meters of Azerbaijani gas per year, about one-third of the country’s consumption, offers the first real alternative to the country’s gas imports. Bulgargaz will also lose the bank guarantee of $73 million if competitors succeed in sabotaging the contract, putting the state-owned company in a tough financial position.
The agreement Bulgargaz has with AGSC is seen as very profitable for Bulgaria, especially considering the current energy price spike. The company hopes that next year it will be able to receive Azerbaijani gas in full after the completion of the construction of the interconnector with Greece (IGB). It will connect Bulgaria with the TAP, the European part of the Southern Gas Corridor from Azerbaijan through Georgia and Turkey to Europe.
Bulgargaz is in a better position this year as a company with long-term contracts than companies trading on the spot market. The prices at which Bulgargaz sells on the Bulgarian market are 30-40% lower than on European markets, thanks to long-term contracts with Gazprom and the import of Azerbaijani gas through alternative routes.
The total length of the IGB pipeline is 182 km, of which 151 km will run through Bulgaria and 31 km through Greece. The annual throughput of the gas pipeline is provided in the amount of 3 billion cubic meters, but if there is demand, the capacity can be expanded to 5 billion cubic meters per year.
The pipeline runs from Komotini (North-East Greece) through Kardjali, Haskovo and Dimitrovgrad to Stara Zagora (South-East Bulgaria).