ENERGY IMBALANCES AND ENERGY IMBALANCES AND

BUSINESS CLIMATEBUSINESS CLIMATE

Kamen Kolev, Vice Chair, Kamen Kolev, Vice Chair, Bulgarian Industrial AssociationBulgarian Industrial Association

Conference on the Future of Natural Gas Conference on the Future of Natural Gas

26 March 2013 26 March 2013

Re-industrializing the economy Re-industrializing the economy

20% СО2 reduction

20% RES share in energy use

20% rise in energy efficiency

20% share of industry in the GDP

Natural gas prices for the householdsNatural gas prices for the households, , 2013 € 2013 € /unit/unit

ЕU28 14,0ЕU11 14,8 BG 11,9

Natural gas prices for the industryNatural gas prices for the industry, 2013 , 2013 € € /unit/unit

ЕU28 10,6ЕU11 11,0 BG 9,9

Energy imbalancesEnergy imbalances

Regulated market Regulated market

households – industry households – industry

Free market Free market

domestic consumption – exportdomestic consumption – export

ЕU28 14,0 / 10,6 = 1,32

BG 11,9 / 9,9 = 1,20

Energy productivityEnergy productivity, 2012, 2012,, € €

7,0 7,3

1,5

0

1

2

3

4

5

6

7

8

EU28 EU11 BG

Natural gas consumption per capita

Source: BP

Measures to reduce gas supply risksMeasures to reduce gas supply risks

Alternative fuel stocks maintained by large public users

Investment in gas storage facilities

Diversification by interconnections with the gas systems of neighboring states

Acceleration of the development of new field projects

Construction of terminals for liquefied gas

Assessment of the technical condition of gas transmission network and facilities

Sale of СО2 allowances and use of the proceeds for gasification

The role of the stateThe role of the state

Independence of the regulator

Ensure security of supply

Overcome supply deficits

Gasification of households Gasification of households

ЕU28 50 – 70 %

Netherlands 100 %

Bulgaria ~ 6 %

This situation requires a national program for accelerated gasification, construction of new transmission routes and mitigation of administrative impediments

The future of natural gasThe future of natural gas

The fuel of 19th c. – coalcoal

The fuel of 20th c. – crude oilcrude oil

The fuel of 21st c. – natural gasnatural gas

Global natural gas consumption will double in the next 20 years

ENERGY IMBALANCES AND ENERGY IMBALANCES AND

BUSINESS CLIMATEBUSINESS CLIMATE

Kamen Kolev, Vice Chair, Kamen Kolev, Vice Chair, Bulgarian Industrial AssociationBulgarian Industrial Association

Conference on the Future of Natural Gas Conference on the Future of Natural Gas 26 March 2013 26 March 2013