Russ Oil-Gas

3 February 2009 - FOCUS News Agency - Bulgaria will insist that a new contract is signed with Gazprom. The parameters in it should be beneficial for both parties. This is what will be discussed during Bulgarian President Georgi Parvanov’s visit to Russia. Bulgaria will insist that it receives natural gas from one supplier – directly from Gazprom or Gazpromexport. The country wants a long-term contract, for ten years at least, and a clause that will ensure security. The clause will state that Bulgaria buys and pays on time the natural gas and Gazprom guarantees there will be no gas cut-off. Bulgargaz executive director and member of the Board of Managers of Bulgarian Energy Holding Dimitar Gogov says it is highly possible that Bulgaria will agree such an accord. Gas will be shipped to Bulgaria also after 2010 when the major contract with Overgaz Inc expires, Gogov said, adding he expects new proposal from Gazprom, mainly in relation with consumption predictability. As to price formation we will ask for updated parameters of the current formula, Gogov said. He notes the formula itself it not bad and it protects rights of both parties. On Tuesday evening or on Wednesday Bulgargaz will present its claims for damages to the three suppliers. Initial estimates say the direct losses from the gas cut-off in January run to USD 20 million, while indirect losses amount to USD 80 million. Bulgargaz clients’ debts are BGN 470 million, said Dimitar Gogov. The debts of the heating utility firms are BGN 379 million. Sofia’s heating utility firm owes BGN 327 million. Kremikovtzi has not paid BGN 78 million for gas deliveries.