Views:2326
bulgargaz

  Bulgaria’s natural gas monopoly has finally announced in public its intent to buy natural gas in the second quarter of 2019 for its needs using an open and competitive procedure. This is the official narrative, at least what Bulgargaz is trying to sell to the public. The volumes are more than modest – 22 million cubic meters in April and 62 million cubic meters in May and June. That is nothing dramatic, yet the management and the government media use the opportunity to trumpet a major shift in Bulgaria’s longtime allegiance to Gazprom, as the country remains the sole SEE state with a near total dependence on Russian gas.   The national gas company, Bulgargas, has long been accused of acting as a Gazprom proxy with Stockholm syndrome, refusing

Views:4751
gaz

  For the first time in more than 15 years, Ukrainian gas has been exported to the EU. On January 30 this year, a small private company, TAS Energia Krainy, managed to sell gas to Slovakia. Volumes are indicative of a test mode, but the fact of the transfer is of great importance.   First, the story is clear proof that Ukraine has successfully resolved domestic gas challenges, due to growth in indigenous gas production and diversified imports, enough to ensure a strong liquidity base for market liberalization and export potential.   Second, the transaction happened in high winter season, which suggests self-confidence and mature levels in capacity and the supply market. The cross-border sale is not referenced to the more common long-term, but to short trade that can track

Views:7478
Pipeline

  The cuts to transit tariffs for use of the Ukrainian gas transmission network, which were announced during the final days of 2018, are a major event that was undeservedly kept out of the media spotlight.   The reductions of nearly 50% are simply a downward correction but send a message.   Here are some corners in the analysis.   The first suspected casualty would be the revenue projections for the Ukraine circumvention projects. Their business logic has been substantially compromised, while the key argument Merkel and Putin continue to use is that the Nord Stream is “just business.” The direct costs of Nord Stream-2 so far are below $10 billion and, accounting for the extra funds spent on gas fields and infrastructure development on Russian territory, the bill skyrockets

Views:9805
Credit: Wikimedia Commons/ Huw Williams

The article first published in americanthinker.com on 11/02/2018.   For more than two and a half centuries, human kind has lived under an irreconcilable dichotomy – the benevolent revolution we call the enlightenment, and the inevitable reactionary counter-revolution that followed it – a dichotomy that has continued to our days.   The enlightenment introduced a number of revolutionary concepts that demolished the church dogma that had dominated the Middle Ages.  It established reason and empirical knowledge as the source of authority leading to the scientific revolution beginning with Copernicus and the heliocentric theory of the universe.  In government, the enlightenment brought about the radical idea of individual liberty with John Locke’s call for “life, liberty and property.“ The revolution reached its apotheosis in the late 18th century with the American Constitution and its

Views:14981
mafia

  “Comrades, we appoint you millionaires” Andrey Lukanov, Bulgarian PM, before 150 nomenclature cadres meeting Bulgarian Industrial and Industrial Association (today BIA) November 1989   The Peevski-Domuschiev amendment comes as a logical consequence of a long evolution in the ruling model of Bulgaria, an almost unavoidable stage – the consolidation of the proceeds and the preponderance of the post-communist nomenclature in its drive to create a version of national capitalism, insulating the country from globalist trends and fencing off Bulgaria from foreign influence. All of this is in the interest of indigenous oligarchs and political power brokers.   This is hardly an innovation. Rather it is reminiscent of the G-13 group story, a graft of a local breed of “wild capitalism” coupled with no less wild and fake nationalism, claiming

Views:5295
turkish stream

  The daily Vedomosti published an article on Turkish Stream, quoting Foreign Minister Lavrov on the need for direct EC guarantees and second rating bilateral agreements, signaling  rising nervousness at the Kremlin with the project advance. It is a most revealing moment for what Russia and its main energy pivot – Gazprom – can afford these days in defying market gravity, while leveraging the Kremlin’s geostrategic moves. Russia’s gas monopoly admitted in June that it is unable to raise project financing – neither in Russia, nor abroad. The new sanctions left Gazprom without a choice but to tap into its own pocket – the 2017 capex program. Banks and investment funds ignored Gazprom’s request, fearing project uncertainty and US sanctions.   The investments associated with Turkish Stream this year, according

Views:3337
gaz

  A little noted two-liner in the newsfeed from Moscow sent shivers down the spine of gas experts – it means a lot both for Russian energy policies and for the EU’s energy market. The lines read that the interdepartmental commission on national security in economic and social affairs with the Security Council of the Russian Federation has decided to recommend the Russian Government revoke Gazprom’s monopoly on export of Russian gas to Europe.   This commission has consultative functions with the Security Council and reports to the Secretary of the Council Nikolay Patrushev. There have been many instances in the past of attempts from different business quarters in the Russian capital to press the government to allow more Russian gas producers to directly export their gas. The final say,

Views:4299
1

  Two events overshadowed the geopolitical landscape on the eve of President Trump’s visit to Poland to attend the Three Seas Initiative Summit. The TSIS is a joint Polish-Croatian project, launched in 2016, with the aim of strengthening trade, infrastructure, energy and political cooperation among countries bordering the Adriatic, the Baltic and the Black seas. Twelve countries are members: Poland, Hungary, Czech Republic, Slovakia, Romania, Bulgaria, Lithuania, Estonia, Latvia, Croatia, Slovenia and Austria.   The fact that the American President will preach the case to CEE leaders for US LNG imports comes as no surprise, yet there is a hidden context and a more complex backdrop against which both the expectations and the deliverables of the visit should be judged.   The Case for US LNG gas   Washington has

Views:2841
ilian vassilev

  In understanding the “pros” and “cons” of spot vs oil prices, the main policy guidelines of the government should not be confined to just securing the physical supply of natural gas, but should allow for ensuring competitive interplay – the invisible hand of the market – between all traders, while protecting the consumers’ interests. This usually boils down to arriving at the best price, which is not always the lowest. Over time consumers start to cherish flexibility and response options to market turbulence over stable prices.   The answers to most of these questions are not contingent on whether we pick oil-based or spot prices. One may enjoy a low price for a certain period, only to be forced to buy mandatory ‘take or pay’ volumes that are not

Views:4573
gaz

  As the Bulgarian government is expected to comment on Gazprom’s draft commitment to the EC regarding the commission’s statement of objections on the Russian gas giant’s abuse of its dominant position, the issue of price formula and the choice between spot and oil-indexed price loom high. The Russian company strives to settle the case out of court and avoid reviews of the current price formula and the merits of linking the gas price to oil derivatives.   The divergence of opinions on the issue is immense. They cover the whole range of choices of specific derivatives, their relative “weight” and overall relevance as benchmarks in the natural gas trade.   The price formula is a separate issue that warrants a snap review of oil-indexation. What might work as trade