(BTA). Prime Minister Boyko Borissov argued here on Thursday that short-term agreements with Gazprom, the Russian producer and supplier of natural gas, are more advantageous. "Despite that the short-term agreements with Gazprom at the moment prove more expensive for this country, in future they will prove more advantageous," Borissov said.
According to Borissov, the biggest option for diversification is the possibility for extracting Bulgarian natural gas. The Prime Minister believes that natural gas will be found in other places in addition to what is called "Block 1-21 Khan Asparouh"
in the Black Sea.
At the end of August an agreement was signed with Total E&P Bulgaria B.V. on oil and gas prospecting in offshore Bulgarian territory in the Black Sea, in Block 1-21 Khan Asparouh.
Borissov said on Thursday that if agreements on gas supply with Russia are signed with terms of 20-30 years and if after a couple of years the shale gas extraction technologies advance and the risks are reduced to a minimum, "Bulgaria stands to
lose".
Borissov also said that the European Commission has opened penalty procedures against large companies in Europe in connection with gas agreements. According to him, this is of benefit to Bulgaria "given the many old contracts signed in a deplorable manner by former energy minister Roumen Ovcharvov and company".
It emerged at a news conference in Brussels Wednesday that a European Commission investigation of possible hindrance of competition in Central and Eastern European gas markets by Russia's Gazprom, concerns Bulgaria's Energy Holding Company. Antoine Colombani, spokesperson of Competition Commissioner Joaquin Almunia, told the press that the probe concerns Gazprom's contracts with Bulgaria, the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Poland and Slovakia.
The Commission said on Tuesday that it is investigating three suspected anti-competitive practices in Central and Eastern Europe. First, Gazprom may have divided gas markets by hindering the free flow of gas across Member States. Second, Gazprom may have prevented the diversification of supply of gas. Finally, Gazprom may have imposed unfair prices on its customers by linking the price of gas to oil prices.
Borissov said on Thursday in Plovdiv that "many countries who took part in the exploration of gas deposits in Russia have agreements on cheaper supplies, but at the moment the price is not equal or competitive". His suggestion for avoiding a monopoly position is for the EC "to create a company of its own for Europe which will buy the gas directly from Russia and then distribute it to all countries in the EU". Borissov said also that Europe's position on the topic of gas is varied between the individual countries. "Our own pragmatic position is the Nabucco gas pipeline and the gas interconnectors so that we could supply gas from Azerbaijan when they are ready".
