Large industrial enterprises will have their natural gas consumption restricted by order of Economy and Energy Minister Peter Dimitrov from 8 a.m. on Thursday, the Minister told the media after meeting with representatives of major gas consumers on Wednesday.

The companies concerned are those using over 25 million cubic metres of gas a year, thermoelectric power plants and gas distribution companies.

The cap on consumption will be equal to the volumes used at 6 a.m. on Wednesday, Dimitrov said, adding that total consumption at that time was 5.7 million cu m of gas.

The Minister said that the gas left in the transmission network was being used.

Dimitrov will sign the order imposing restrictions on Wednesday, and it will be posted on the Ministry's website. It will detail the volumes allocated to every consumer or group of consumers.

Dimitrov declined to estimate the losses that will be sustained. He said Bulgaria would rely on the EU to show solidarity and help Sofia offset its losses.

"Bulgaria is a EU Member, and the question of compensations for this country should be addressed in negotiations between the EU and the country that is to blame for the crisis: Russia or Ukraine," Dimitrov said. "Bulgargaz and Bulgartansgaz interact with gas suppliers on the basis of commercial contracts, and claims could be laid on the basis of these contracts," the Minister noted.

Dimitrov said that Russia has written a letter asking Bulgaria to pressure Ukraine through the EU to repay its debt to Gazprom, which amounts to 1,600 million US dollars by December 2008.

Earlier on Wednesday, Dimitrov said in a bTV interview that consumption was down by 60 to 70 per cent. Gas is being supplied from the storage facility in Chiren, which provides the maximum possible 4.2 million cu m a day. A further 300,000 cu m of gas come from the Galata deposit.

Bulgargaz CEO Dimiter Gogov told Bulgarian National Television that if pumped out at this rate, the gas reserves in the Chiren storage facility would last for at least 100 more days.

Overgas Inc., a major supplier of Russian gas to Bulgaria, has temporarily reduced natural gas supplies to customers due to the gas traffic crisis, the company said. Supplies to households and public users around the country continue, with the exception of public buildings in Peshtera, Pazardjik (both in South Central Bulgaria) and Razgrad (Northeastern Bulgaria). Supplies to all industrial customers except the glass works in Novi Pazar (Northeastern Bulgaria) have been cut off.

The company has fulfilled the orders placed by Bulgartransgaz, the operator of the gas transmission network.

Overgas called on all households to use gas sparingly.

When a deficit emerges, health-care establishments, kindergartens, schools, social institutions and households are supplied with natural gas on a priority basis, and industrial enterprises are at the bottom of the list, the company also said.

ELECTRICITY

Dimitrov also said there were no signs of an overload of the electricity supply system for the time being. Bulgaria is exporting 516 MW of electricity, and the Minister expressed the hope that there would be no need to suspend this export.

According to figures released by the Electricity System Operator EAD, electricity consumption countrywide stood at 6,776 MWh by 7:00 p.m. on Tuesday, up from 6,759 MWh by 7:00 p.m. on Monday.

The Bobov Dol TPP is ready to restart its shut-down Unit 2 and to bring it on stream within five or six days, the power plant's Manager Vladimir Vladimirov said.

The unit can generate 4 million kWh of electricity daily. Unit 2 is in good technical condition but was shut down on December 31, 2007 due to poor environmental performance.

INDUSTRY

Enterprises around the country are suspending or curtailing manufacturing operations in connection with the limited gas supply. Gas supply to Stomana Industry SA of Pernik (Southeastern Bulgaria) has dropped by 60-70 per cent, said the steelmaker's Production and Planning Manager Konstantin Stamenov.

Stomana Industry will go out of operation within a couple of days unless the gas situation is brought under control, BTA learnt from Anton Petrov, representative for Bulgaria of VIOHALCO, the Greek owner of the metal works. "The plant is on a suspension mode," Petrov said.

Montupet, the French car parts plant in Rousse (on the Danube), has suspended operation due to the halted gas supplies. The company will sustain huge lost profits, Montupet Bulgaria said.

Despite the surprising and sudden reduction of natural gas supplies, the facilities at fertilizer manufacturer Neochim of Dimitrovgrad (Southeastern Bulgaria) are safe and do not pose a risk to the public, the company said. The Dimitrovgrad plant Tuesday started shutting down its production capacities as an emergency precaution due to the halted supply of natural gas.

Bread for Bulgaria Association of Bakers and Confectioners President Georgi Popov told BTA on Wednesday that there will be no problems with the availability and supply of bread in the country. Popov specified that most of the 30 per cent of Bulgaria's bread-baking plants and bakeries which run on gas are switching over to diesel fuel.

Source: BTA