Today, Gazprom’s delegation led by Alexander Medvedev, Deputy Chairman of Gazprom’s Management Committee, paid a visit to the Republic of Bulgaria.

Within the visit, Alexander Medvedev met with Rumen Ovcharov, Economy and Energy Minister of the Republic of Bulgaria.

The parties continued discussing the issue on overviewing current payment terms for Russian gas transit via Bulgaria.

The meeting’s participants agreed in nearby future to round off talks on accommodation of economically feasible transit cost and prolongation of current Transit Contract’s terms up to and including 2020.

In regard to said agreement, the meeting held discussion on expanded Russian gas transit via Bulgaria and gas-energy investments.

“Resolving the issue on Russian gas transit within the European terms is aimed at additional opportunities’ outline establishing long-term relations between Russia and Bulgaria in the gas sector” said Alexander Medvedev.

Reference:

Russian natural gas has been exported to the Republic of Bulgaria since 1974. In 2005 gas supply volume accounted for 3.1 bcm. At the present time Gazprom is the only gas exporter to Bulgaria.

Gazprom transports gas to Turkey, Greece and Macedonia via Bulgaria.

Under Agreement of April 27, 1998, Gazexport (100 per cent Gazprom-owned subsidiary) and Bulgargaz have signed a Transit Contract being in force up to 2010.

On March 2, 2003 Gazprom and Bulgargaz signed a Memorandum on further cooperation deepening for Russian natural gas deliveries & transit. The Memorandum provides the use of Bulgarian transit gas pipelines to Greece and Macedonia to supply gas to final costumers in south-western Bulgaria.

Gas distribution networks’ development in Bulgaria & gas supply to final consumers has a high potential for beneficial integration between Russia and Bulgaria. Overgaz Inc (Russian-Bulgarian joint venture & 50 per cent Gazprom-owned subsidiary) has a great experience carrying out said scope of activities. Overgaz Inc holds interest in 32 trade companies and acquires a majority interest in 26 gas distribution companies holding 56 licenses for natural gas distribution & deliveries. The company also holds interest accounted for 73.8 per cent of Bulgaria’s gas distribution.