About us - BULGARGAZ HOLDING EAD
Bulgargaz HOLDING EAD
The current Bulgarian legal framework in the area of Energy has been harmonized with the European legislation. The requirements of Directive 2003/55/ЕС, concerning common rules for the internal market in natural gas have been implemented in the Energy Act in force in the Republic of Bulgaria.
One of the requirements of Directive 2003/55/ЕС is that the natural gas transmission, transit and storage on the one hand and the public supply of natural gas on the other hand should be performed by organizationally and legally separate entities.
In this regard Bulgargaz Holding EAD, city of Sofia (former name Bulgargaz EAD) is organizationally and legally unbundled by separating two sole-owner joint-stock companies - Bulgargaz EAD and Bulgartransgaz EAD, from it. Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD (separated earlier) are 100% subsidiaries of Bulgargaz-Holding EAD, but they are independent in its legal form, organization and decision making. They are managed by five members Board of Directors and are represented by a Managing Director.
Bulgargaz-Holding EAD owns 100% of subsidiaries' capital coordinates and supervises subsidiaries' activities with a view to implementing a unified strategy and policy. Bulgargaz-Holding EAD will participate in large-scale investment and international projects (including their financing).
Bulgargaz EAD is established as a public supplier of natural gas and acquires all the rights and takes all the obligations related to the supply of natural gas in compliance with the granted by the competent regulatory authority license for public supply of natural gas.
Bulgartransgaz EAD is a holder of the rights and the obligations concerning the licenses granted for transmission, transit and storage of natural gas. It is in charge of the management, operation, maintenance and development of the gas transmission system and the underground gas storage.
The prices for gas sales by the public supplier, the prices for transmission as well as the prices for storage are regulated by State Energy and Water Regulatory Commission. The latter is the independent Bulgarian regulatory authority granting licenses for public supply, transmission, transit and storage of natural gas.
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The subject of business of Bulgartel EAD is: trade, marketing and engineering in the field telecommunications; construction, operation and maintenance of telecommunication networks and information systems and providing telecommunication and information services.
The real development of the natural gas market in Bulgaria started in the mid-70s of the past century with the construction of a main gas pipeline from the former USSR to Bulgaria and national gas transmission system on the territory of the country. The indigenous resources of natural gas are limited, supplying between one and ten percentage of total consumption. The remaining qualities of gas are imported from the Russian Federation via Ukraine and Romania, which is the single source of imported gas.
Bulgargaz-Holding EAD is the sole owner of the Bulgarian National Gas Transmission System as well as of the Transit Pipeline System on the territory of the country. This gas pipeline grid includes:
- High-pressure main gas pipelines /including the off-takes/ with prevailing diameters of 40-28", having total length of 1700 km and 4 compressor stations with total installed capacity of 57 MW for transmission of natural gas on the territory of the country;
- The transit network having total length of 945 km of pipelines /prevailing diameters 48-40"/ and 6 compressor stations with total installed capacity of 240 MW for natural gas transit via the territory of the Republic of Bulgaria to Turkey, Greece and Macedonia;
- Underground Gas Storage in Chiren having total capacity of 1.2 BCM;
- About 70 gas reducing and metering stations;
- Accompanying facilities - telecommunication system, system for electrochemical protection from soil corrosion, service and maintenance stations, etc.
In 2006 the total annual gas supply to Bulgaria was 3 300 mln cubic meters. Over the recent years the natural gas consumption in the country gradually grows at a rate of 2 - 5 % per annum. At present about 380 clients, including 39 gas distribution companies, are supplied. The total gas transit to the countries of the Balkan region via the territory of Bulgaria for 2006 was 15 500 mln cubic meters per annum.