Gas Hub concept discussed in ParliamentEuropost
The concept for the Balkan Gas Hub was presented at a forum in Parliament on 4 June. Opening the forum, parliamentary energy committee chair Valentin Nikolov said that the operation of an energy exchange should be regulated by legal amendments to the Energy Act which will be put up for public consultation.
Balkan Gas Hub EAD was registered in January 2019 with the aim to establish a gas exchange. The company has capital of 500,000 leva is entirely state-owned. Stakes can be offered to legal or physical entities such as wholesale traders, producers or energy exchanges but gas network operator Bulgartransgaz will keep the controlling interest. Expert assessments show that demand for natural gas on the exchange will increase from 700 million cu m in 2020 to nearly 2.5 million cu m in 2024.
Bulgaria's energy strategy was amended at the end of 2018 and Bulgartransgaz took steps to establish Balkan Gas Hub, said Bulgartransgaz Executive Director Vladimir Malinov. "We took steps to create a liquid market of natural gas," he said.
Balkan Gas Hub Director Kiril Ravnachki said that the low market liquidity of natural gas is taken into consideration. The establishment of the exchange will increase the liquidity of the market, will allow traders to conclude deals in one place and will benefit all participants in the market, said Ravnachki.