The offshore section of the TurkStream pipeline stretching 930 km across the Black Sea from Russia to Turkey consists of 2 parallel strings
1st string is intended for consumers in Turkey
The 2nd is intended to carry gas to customers in Europe via Bulgaria.
Bulgartransgaz said in a statement:
- Gazprom Export expressed interest and readiness to make an advance payment in the respective amount for the booking of capacity under a signed capacity booking contract for the period July 1, 2021 - June 30, 2023
- The total due amount for the period, calculated at a forecast annual indexation of the applicable tariffs under the effective contract, for gas years 2021-2022 and 2022-2023 of 1.7% totals to €360,2 million, VAT excluded
- When applying a discount factor of 2.7% on an annual basis the advance payment sum totals to €349,4 million, VAT excluded
Bulgartransgaz will pay early €235,7 million to the Arkad consortium, thus the company will not owe any cost increase thereunder and will save accordingly €41 million.
In addition, in line with a proposal of the consortium, Bulgartransgaz will further save €7,4 million as a result of the additional cost increase reduction in the percentage for a 3-year period.
Bulgartransgaz will use the remaining part of Gazprom Export's advance payment amounting to €48,6 million to pay future operating, investment and financial costs, the company also said.