Bulgargaz Warns of Bulgarian Gas Shortages

Bulgaria's state-owned supplier Bulgargaz has warned of potential shortages of supply to its customer in the face of massive debts and the strain on its underground storage facilities.

Speaking on Bulgarian radio station Darik radio, head of corporate relations and licensing of Bulgargaz, Alexander Petrov said that debts of BGN300 million (approximately €153 million) will force the company to rely on its underground storage of gas this winter.

If relying on the underground storage, there is a danger of shortages in 2013, he warned. As such, Mr. Petrov said that a renewed contract with Gazprom would need to be signed by mind-November to counteract the chance of a shortage. However, an 11 per cent discount currently given by Gazprom to Bulgaria on gas supply is due to run out with the end of the current contract,

Bulgargaz is in the process of taking on a loan to pay for the Russian gas supply, Mr. Petrov told the radio station. 

Currently, Bulgargaz holds stored gas in its Chiren facility of around 380 million cubic metres of gas. However, Mr. Petrov says that around 210 million cubic metres of that amount will be used for supply by the end of this year, leaving Bulgargaz with reserves of only 170 million cubic metres for 2013.