Many EU countries understand that without Russian gas they will not be able to get through the next winter effectively. State Duma Energy Committee member Boris Gladkikh expressed this view during his meeting with RT, commenting on the message about Bulgaria’s intention to continue gas supply from Russia.
“In addition to the rapid rise in gas prices, problems arise in financing the production of goods and financing public services,” the deputy said.
According to him, EU countries found themselves in a situation where they took on the displeasure of their citizens and business representatives who opposed the anti-Russian restrictions through their own fault.
Bulgaria and gas
The Bulgarian interim government expressed its desire to continue negotiations on a contract for the supply of Russian gas. In the broadcast of the program Hello Bulgaria, the acting director said that a relevant message has already been sent to Gazprom. Energy Minister Rosen Hristov. According to him, the answer is expected today or Monday.
“We told them that we are ready to continue negotiations on the contract and that we have a number of proposals for changes that will enable the contract to be optimized,” said Hristov.
He emphasized that we are talking about “an old contract”. Hristov pointed out that Bulgaria does not have time to use gas volumes under this contract.
Sofia’s proposal is to extend the deadline until 2023 to receive the remaining gas quantities. At the same time, there will be no talk of renewal of the contract.
When asked whether Bulgaria supports Russia’s special operation in Ukraine by buying gas from Moscow, Hristov said, “We still only get Russian gas through intermediaries and pay 30% on top of it. If we are talking about financing, Germany should first stop buying Russian gas. Leading European countries buy the same gas according to these rules.”
At the same time, the government will insist on a bank guarantee when monthly gas supplies are received. So far, a prepayment scheme has been maintained between Gazprom and Bulgaria. But this is risky, according to Khristov, because money can be transferred, but gas cannot.
And about. The Energy Minister confirmed that Bulgaria has alternatives. However, in mid-August it became known that Sofia had abandoned six US LNG tankers, as it was not possible to accept the purchase of gas at a “normal” price.
“We received an offer to deliver a tanker in October. We could not find a slot at a price that would make the supply economically advantageous for November and December.”
As for Russian companies, Bulgaria announced at the beginning of August that it plans to continue negotiations with Gazprom if it cannot find alternative suppliers, which is a priority.
And about. The Minister of Energy stressed that there will be no politicians who “freeze the country’s population”.
“We are trying to ensure gas supply by the end of the heating season, ideally by the end of next year. “We will leave the negotiations on long-term contracts to the future government,” he said.
At the same time, buying natural gas from Russia does not mean that the country will leave the EU. According to him, Bulgaria is ready to work with Gazprom on the same terms as other European countries.
“We must ensure safe and guaranteed gas supply at the best price. To feel safe, we must guarantee 120% of the required amount of gas,” he said.
On April 27, Gazprom stopped shipping blue fuel to Bulgargaz. This was due to the fact that gas was not paid on time in rubles.
After that, Sofia announced that it has found alternative suppliers who are ready to supply gas at a price significantly lower than Gazprom’s offer. In July, gas in Bulgaria costs BGN 186.17 (about €95.34) per MWh, and in August the price should rise to BGN 297.89 (about €148.95).
Norway does not offer discounts
Importers from European countries will not receive discounts on natural gas from Norway despite the energy crisis in European countries. This position was reported to the E24 newspaper by the Minister of Oil and Energy of the Terje Osland Kingdom.
“Oil companies operating on the Norwegian continental shelf operate on a commercial basis” and Norwegian authorities will not force businesses to enter into contracts at below market prices.
He reminded that Brussels “abandoned the practice of long-term contracts 20 years ago in favor of the spot market”. Therefore, now the Norwegian system includes the conclusion of such contracts, but “based only on economic interests”.
There is a rapid increase in gas prices in the EU. To date, it has reached $3,376 per thousand cubic meters of gas. As a result, Norway, which provides about a quarter of the energy carrier to the EU, is looking to receive 100 billion Euros in hydrocarbon exports in 2022, compared to 30 billion Euros a year ago.