Bulgargaz and Gazprom sign annexes on renegotiation of gas price

Bulgarian state-owned Bulgargaz and Russia’s Gazprom signed annexes to their current gas supply contract regarding the renegotiation of the price of imported Russian gas, local media reported. Bulgargaz announced it accepted Gazprom’s proposals for the contract amendments, which are in line with Gazprom’s commitments to the EU and to the benefit of Bulgargaz. The annexes envisage that the Russian gas supply price can be renegotiated in case of significant changes in the economic environment on the European gas markets, as far as they are not subject to the states’ control. The gas price can also be reconsidered if it does not reflect the changes of prices on the border between Germany, France and Italy, or the changes in gas prices in the gas hubs TTF, NCG and others. The frequency of gas price reconsideration will be set at once per every two years. Bulgargaz is also entitled to demanding change in the gas supply point.

The official announcement of Bulgargaz did not disclose whether a downward adjustment of the gas price will take place in the short run. Representatives of the company will again meet Gazprom Export representatives for further discussions in November.

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