BULGARGAS BOUGHT RUSSIAN GAS AT HIGHER PRICE IN 2010 DESPITE AGREEMENTS

A year after Bulgaria held negotiations with Russia to cut the price of natural gas deliveries to the country, a report by state-run gas monopoly Bulgargas showed that the company bought gas in 2010 at a price 12.48 per cent higher than the previous year.

According to the report, published behind schedule in late July, the cost of gas was the most expensive in the last quarter of the year.

In July 2010, Bulgaria and Moscow reached an agreement to trim gas costs and eliminate two of the intermediaries that supply gas to the country.

Currently, Bulgaria has contracts to buy gas from three intermediaries, all partially or outright owned by Russia's state-owned gas company Gazprom - Overgas, Wintershall and Gazpromexport. The agreements expire in late 2011. So far, the parties have failed to arrange new terms for gas supplies after 2012, although they were expected to settle the issue in mid-2011.

In 2010, Bulgargas bought from Russia 2.48 billion cu m of gas.