Lukoil Neftohim’s logistics costs have skyrocketed tenfold
Oil supplies for the Burgas refinery are guaranteed for May, the energy minister announced
~ 2 min read
Economic.bg Logistics costs at the Lukoil refinery have increased by a factor of 10 compared to pre-crisis levels. This was stated by Acting Energy Minister Traicho Traikov to journalists following a meeting of the crisis management team, which monitors and controls fuel and commodity prices amid tensions in the Middle East.
Traikov noted that this information was obtained from customs officials and refinery management.
This is already reflected in fuel prices,” the acting minister clarified, adding that this explains why prices are significantly higher than before the crisis.
According to him, fuel sales volumes have not decreased, and against the backdrop of higher prices, this provides a buffer to maintain the financial stability of all parties in the supply chain.
According to Traikov, supplies to the refinery are guaranteed through the end of May and even into June to some extent, which is also a function of the working capital available to the company.
The Future of AES Maritsa East 1 Thermal Power Plant
He also commented on the closure of AES Maritsa East 1 Thermal Power Plant in May, as the plant’s contract with the National Electric Company is expiring. According to him, this was clear even before the caretaker government took office and will most likely not happen during its term.
This has been known for a whole year, and some discussions about options have been held, but we haven’t seen any concrete results. From a production capacity standpoint, the Maritsa East 2 Thermal Power Plant can take over the capacity that is being shut down,” he emphasized, as quoted by BTA.
The Contract with Botas
Traicho Traikov commented that the focus of negotiations with the Turkish side regarding the contract with Botas should be on quantities, capacity prices, and possible responses to changing market conditions.
According to him, the use of this contract is currently too expensive, and all other things being equal, it would not be the preferred option.
I believe that the philosophy of this contract makes it possible for it to be of great benefit once the parameters are calibrated,” he said.
Translated with DeepL.
