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Market integration Security of supply Competition

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Presentation on theme: "Market integration Security of supply Competition"— Presentation transcript:

1 Market integration Security of supply Competition
Specific problems and infrastructure needs of Bulgaria Isolation Limited entry points Market integration Security of supply Competition Limited supply sources Price spreads Single supply dependence Supply route disruption N-1 non-compliance Lack of diversification On a Country level Bulgaria is facing challenges related to SoS, market integration and competition as a result of the limited supply sources and low level of market liquidity.

2 Market Integration Currently, there is a lack of the necessary infrastructure - interconnections and access to LNG terminals for alternative gas supplies to the country. Bulgaria needs infrastructure in order to enable reverse flow and to increase diversification of entry points as currently there is only one main source of natural gas supply. This infrastructure will enable Bulgaria and South and Central Europe to end their isolation and to connect the markets from the Balkan region, Eastern and Central Europe, including Ukraine and Austria. With the development of the infrastructure needed, Bulgaria has the potential to become a gas hub for the region.

3 Security of supply /Competition
The very limited access to supply sources puts the country at risk of supply route disruption. To mitigate that risk, along with the infrastructure and the diversification of supply sources the country needs also to comply with N-1 requirements. Very important for the development of the gas infrastructure in the region is the expansion of the storage capacity of the sole Bulgarian UGS (Chiren), in order to meet the national and regional market needs. The storage capacity has the potential to be further increased by building a new gas storage in the country. The diversification of gas supplies from possible sources like Azerbaijan, USA, Qatar, Algeria, Egypt, Russia, etc. is necessary as it will increase competition and ensure competitive prices for the Bulgarian economy.


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