The suspension of the expansion of the gas storage facility in Chiren should not lead to damage for "Bulgartransgaz", the authorities assure.
"It became clear that the contractor of the contract returned the money that was paid to him, but the question remained unclear whether this termination by mutual consent would not be grounds for additional claims in the future. I cannot imagine a company that would spend 70 million leva on its own account. This question remains open," commented energy expert Yavor Kuyumdzhiev in the studio of "Denyat ON AIR".
It was discovered in the middle of the last century as a deposit, its capacity was exhausted and it was converted into a storage facility.
"Natural gas is pumped inside caves like reservoirs and gas can be pumped and extracted through various wells. The expansion was planned many years ago," said Kuyumdzhiev.
The significance of Chiren is also important for Greece, as Greek companies store their gas in the Bulgarian gas storage facility.
"It has a capacity of 700 million cubic meters, about 550 of which are usable. The expansion was planned for 300 million. A unique business project for "Bulgartransgaz", because they take money from gas traders for storage," emphasized Kuyumdzhiev.
In front of Bulgaria ON AIR, he pointed out the biggest mistake in negotiating the extension - a company with no experience in building such wells was chosen as the project contractor.
"Adding to the whole mess the contract with "Botaş", which is already bankrupting "Bulgargaz", but the obligations under it will be transferred to the state, i.e. to all of us. How rich are we that in recent years we have thrown billions at things that bring nothing," asks the energy expert.
As of January 1, Ukraine has stopped the transit of Russian gas through its territory.
"They clearly stated that they will not extend it, if the transit of Russian gas is stopped and via "Balkan Stream", gas prices will soar. The price of Russian gas, its cost price at the EU border is 5-6 euros per megawatt-hour, the price of American liquefied gas, to make a profit is about 60 euros, currently it is 40 euros," said Kuyumdzhiev.
His expectations are for an increase in the price of electricity.
At the moment we import 1,000 megawatts, mainly from Turkey and Greece, we export 1,500 - mainly to Romania and Serbia.
"For 2024, about 11 million. "We have exported megawatt hours, which is about 3-4 times less than in previous years, but we are still a net exporter," the former Deputy Minister of Economy and Energy emphasized.
Kuyumdzhiev added that we will probably become an importer of expensive electricity.