VZCZCXRO2688
OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL RUEHSR
DE RUEHSF #0716/01 3561147
ZNY CCCCC ZZH
O 221147Z DEC 09
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6553
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 SOFIA 000716 
 
SIPDIS 
 
DEPARTMENT FOR SPE MORNINGSTAR, DOE FOR ELKIND,CUTLER, 
EKIMOFF 
 
E.O. 12958: DECL: 12/20/2019 
TAGS: ENRG PREL PGOV ECON BU
SUBJECT: BULGARIA:  WHAT IF THE GAS IS CUT AGAIN? 
 
Classified By: CDA Susan Sutton for reasons 1.4 (b) and (d). 
 
 ¶1. (C) If a Russia-Ukraine dispute results in a 2010 gas 
cut-off similar to one experienced in January 2009, Bulgaria 
will be better prepared.  Gas storage supplies are full, 
agreements with Greece and Turkey to reverse gas flows have 
been established, and district heating plants are prepared to 
make a quick switch to mazut, if necessary.  While all of 
these arrangements are in place, they are complicated and 
untested.  We believe, under the best case scenario, Bulgaria 
will be able to meet 80 percent of the country's demand for 
two weeks, after which the government will likely be able to 
cover half of the country's demand for an extended period. 
End Summary. 
 
Background 
---------- 
 
¶2. (SBU) Bulgaria is dependent on Russia for approximately 92 
percent of its gas consumption totaling import of about 3.65 
billion cubic meters (bcm) annually (or 10-12 mcm/day).  In 
2008, domestic production accounted for less than eight per 
cent of Bulgaria's gas consumption with a total extraction of 
217.5 million cubic meters (mcm).  The majority of this gas 
was from the now depleted Galatta Field in the Black Sea 
shale area.  In 2009 Galatta extraction was discontinued. 
Approximately 90 percent of imported gas is consumed by 
industrial users, including heating utilities.  Out of the 
estimated total consumption of 3.35 bcm per year, 2.21 bcm 
(66 percent) is used by industry, 1.01 bcm (30 percent) for 
electricity and heating, 0.08 bcm (2.5 percent) by the 
service sector, and 0.05 bcm (1.5 percent) by households. 
About 47.5 percent of Bulgaria's heating needs come through 
the district heating plants running on gas.  As January 2009 
showed, a gas cut-off would greatly impact Bulgaria's heat 
production capabilities, with approximately three million 
residents needing alternative sources of heat for household 
needs.  The chemical and metallurgical industries would also 
be hit hard from a gas cut-off. 
 
What if the Gas is Cut Again? 
----------------------------- 
 
¶3. (C) The January 2009 gas cut off spurred the GOB to pursue 
alternative sources of gas supplies and draw up emergency 
operational measures for future crises.  Over the past year 
Bulgaria actively pursued gas pipeline interconnectors with 
Greece and Romania, and will receive EU funds to implement 
these medium-term projects.  The Bulgarian government has 
also courted Caspian and Central Asian gas producers to fill 
interconnectors (including a possible additional 
interconnector with Turkey) and to source possible CNG 
shuttles over the Black Sea.  It is also expanding domestic 
storage capacity.  All of these projects are many years from 
realization. 
 
¶4.  (C)  To meet the immediate requirements of a January 2010 
gas cut-off, the government has filled the Chiren storage 
facility to its maximum capacity of 1.4 billion cubic meters, 
(700 million cubic meters of operational gas and the 
remaining as a buffer volume.)  The maximum withdrawal rates 
are 4.2 mcm per day for the first twenty days, 4.0 mcm per 
day for the next fifteen days, and subsequently decreasing 
volumes for the next seven months.  However, the aging 
delivery and withdrawal systems have not been subjected to 
extended periods of operation at high volumes with reducing 
pressures.  Therefore, a sustained supply at a constant 
volume of four mcm is questionable.  If gas supplies from 
Chiren are needed, priority will be given to industrial users 
such as glass plants, greenhouses, poultry farms, and heating 
utilities. 
 
¶5. (C)  Bulgaria will also be able to reverse the gas flow 
from Greece, something the Bulgarian and Greek sides worked 
out in the last days of the January 2009 gas crisis.  The 
technical process will take about five to six hours to switch 
the flow, but due to the time required to pump the residual 
gas in the pipeline, it will probably take two to three days 
to realize adequate supply volume.  Bulgaria has an agreement 
with the Greek company DEPA for supply of 2.5 to 3 million 
cubic meters per day.  The source of this gas is LNG from the 
Revitoussa LNG Terminal in Northern Greece and can be 
supplied for an extended period of time.  The reversal of the 
gas flow from Turkey is more complicated, requiring 
 
SOFIA 00000716  002 OF 002 
 
 
replacement of a check valve to facilitate reversing the 
flow, and could take five to seven days for the gas supplies 
to begin.  Through an agreement with BOTAS, Bulgaria can 
receive 2.5  to 3 million cubic meters of gas per day, 
supplied from Marmora LNG Terminal.  These volumes are 
questionable due to the lack of a metering station and 
reliance on less accurate, traditional volumetric 
measurements.  Bulgaria is not guaranteed the total available 
reverse capacity and our best estimate is that it could 
receive no more than two mcm per day combined from Greece and 
Turkey. 
 
Switching to Mazut and Electricity 
---------------------------------- 
 
¶6. (C) In the event of a new gas crisis, Bulgarian central 
heating plants will switch over to mazut.  Due to a lack of 
logistical and operational readiness in January 2009, the 
heating plants and industrial facilities took three to five 
days or longer to make the switch.  Now the Ministry of 
Economy and Energy states that all state-owned industrial and 
heating utilities are prepared for a quick switch (taking 
about a day), if needed.  Some of the large utilities have 
stocked mazut volumes three times the size required by the 
state (one week's supply.)  Heating plants and industrial 
facilities such as the Sofia Central Heating facility can 
operate at full capacity using mazut, although there are some 
facilities that will need to reduce capacity.  One such 
facility is the Plovdiv heating plant, which supplies heat to 
over 400,000 residents.  Also, the heating plants can not 
operate for an extended period of time on mazut due to EU 
emission restrictions. 
 
¶7. (C) Electricity can also be used as source for household 
heating and some limited industrial applications in case of 
another gas cut off.  However, this will place additional 
burden on an already deteriorating and aging distribution 
network that is in need of major upgrades.  The networks in 
Sofia, other large cities, and the national grid have not 
been upgraded for decades and will not be capable of carrying 
substantially increased loads.  In addition, the majority of 
old buildings in big cities can only handle constant, low 
voltage supply.  Numerous daily operational outages were 
reported in January 2009 due to overloads of the system. 
 
¶8.  (C) Comment:  Bulgaria has taken operational measures 
that will enable the country to deal better with any gas 
crisis compared to the January 2009 cut off.  Bulgaria's 
efforts still don't meet EU standards for preparedness, but 
the new Borissov government, which is pursing a less cozy 
relationship with Moscow than its predecessor, won't be 
caught as unprepared as the last government.  Considerable 
work remains, especially on upgrading gas storage facilities 
and ensuring that regional interconnectors become reality. 
End Comment. 
SUTTON