Gazprom Export with interest in reserving long-term capacity and advance payment of BGN 683 million to Bulgartransgaz
Following an agreement for advance payment of reserved capacity, Bulgartransgaz EAD will realize savings in the amount of BGN 106 million
Gazprom Export has expressed interest in reserving long-term capacity on Bulgartransgaz's gas transmission system and paying in advance for its reservation. The amount for reservation of the long-term capacity is of the order of over EUR 349 million or BGN 683 million by Gazprom Export LLC. This will bring significant financial benefits to the Bulgarian transmission operator. As a result, significant amounts will be paid to the Arkad consortium (for the construction of Balkan Stream) and debt repayment to banks, Bulgartransgaz reported.
On June 17, Bulgartransgaz EAD informed all its current and future users of the gas transmission system, who have reserved long-term capacity or intend to reserve capacity products in the planned tender for distribution of annual capacity products, according to the calendar of ENTSOG (European Network of Transmission Operators). of natural gas) for 05.07.2021, including the reserved capacity under long-term fixed price contracts, for the possibility for one-time advance payment of the value of the reserved long-term capacity, discounted by 2.7% on an annual basis, upon reservation for at least one year. In this regard, Gazprom Export LLC expressed interest and readiness to make an advance payment of amounts due for capacity reservation under a contract for capacity reservation for the period from 01.07.2021 to 30.06.2023, inform by the company.
According to Bulgartransgaz, the total amount due for the period, calculated at the estimated annual indexation of the applicable tariffs under the current contract, for gas years 2021/2022 and 2022/2023 in the amount of 1.7% amounts to BGN 704,477,888.26 without VAT. When applying a discount factor of 2.7% on an annual basis, the amount for the advance payment amounts to BGN 683,302,760.39 without VAT.
Bulgartransgaz EAD will use the received funds for partial repayment of debts to the main contractor (Consortium Arcade) of construction and installation activities of the project for Expansion of the gas transmission infrastructure of Bulgartransgaz EAD parallel to the northern (main) gas pipeline to Bulgaria. the Serbian border." After receiving an offer from the consortium "Arcade Consortium", the gas transmission operator will pay ahead of schedule an amount of BGN 461,096,701.65, thus the company will not owe a price increase and will accordingly realize savings of BGN 80,321,808.44. In addition, according to the consortium's proposals, Bulgartransgaz EAD will realize additional savings in the amount of BGN 14,641,567.36, as a result of the additional reduction of the percentage of the due increase for a three-year period, the transmission operator states.
The available funds allow Bulgartransgaz EAD to repay EUR 65 million to commercial banks ahead of schedule. In case of early repayment of the liabilities, the company will realize savings in the amount of BGN 11,662,232.90 of interest expenses, as well as will reimburse collateral in the amount of BGN 24,142,912.00. BGN 95,077,109.16, Bulgartransgaz EAD will use to pay future operating, investment and financial expenses.
Bulgartransgaz EAD will realize total savings in the amount of BGN 106 million, paying ahead of schedule liabilities to the Consortium Arcade and repaying liabilities to banks through the advance payment of over EUR 349 million or BGN 683 million by OOO Gazprom Export ", the transmission operator also points out.