"A transition to market prices for Russian natural gas deliveries via Bulgaria to third countries, as well as perspectives for Gazprom's possible involvement in the development of Bulgaria's energy sector, were discussed at the meeting," Gazprom said in a statement following the meeting between Alexei Miller and Ambassador Plamen Grozdanov.
Gazprom wants Bulgaria to pay in cash for natural gas deliveries, which totaled 3.1 billion cubic meters in 2005, thereby eliminating a gas-for-transit scheme in a contract signed by its export arm, Gazexport, and Bulgaria's state-owned Bulgargaz, that will expire in 2010.
In 1998, the companies signed two contracts - for direct delivery and for gas in exchange for transit. Under the first contract, Bulgaria currently pays about $260 per 1,000 cubic meters, but the gas price under the gas-for-transit contract is $83 per 1,000 cubic meters. That allows Bulgargaz to keep domestic prices at about $180 per 1,000 cubic meters.
Gazprom delivers natural gas via Bulgaria to Turkey, Greece and Macedonia.
