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Gazprom, Bulgaria mull increase in gas supplies

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MOSCOW, February 1 (RIA Novosti) - The head of Gazprom met with the Bulgarian economy and energy minister Wednesday to discuss a possible increase in Russian natural gas supplies to Bulgaria, the Russian energy giant said.

"The parties discussed the prospects for Russian-Bulgarian cooperation in the oil and gas sector, including the possibility of increasing natural gas deliveries [to Bulgaria]," Gazprom said in a news release.

A Gazprom demand to raise gas prices for Bulgaria from the current $100 per 1,000 cu m to the average European price of $257 was also central to talks between Gazprom's Alexei Miller and Bulgarian minister Ruman Ovcharov.

Gazprom, the world's largest natural gas producer, exports gas to Turkey, Greece, and Macedonia via Bulgaria under an agreement signed by Gazexport, Gazprom's export arm, and Bulgargaz, Bulgaria's state-owned gas importer and distributor, in 1998.

Bulgaria has been unwilling to meet Gazprom's price demand, calling it unacceptable and arguing that the transit agreement and the agreement on direct gas supplies expires only in 2010.

Building new gas transport facilities in Bulgaria, and a project to lay an oil pipeline from Russia to Greece via Bulgaria were also discussed.

The three countries set up a joint committee to oversee the project in 2000. Committee members are currently completing discussions on a feasibility study.

Bulgaria, once a member of the socialist bloc, has received Russian gas since 1974. In 2005, Gazprom supplied it with 3.1 billion cu m of gas.

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