Dnevnik quoted Mr Dimitar Gogov executive director of Bulgaria's state run gas supplier Bulgargaz as saying that it will attempt to negotiate a price decrease by upwards of 15% after 2011.

He added that "I hope for a bigger discount than 15% or rather a calculation of price formation parameters that could lead to a substantial decrease."

Currently, Bulgaria gets gas from three companies where Russian major Gazprom has a stake Overgas, Wintershall and Gazprom Export. One of its contracts with Overgas, under which Bulgaria gets 1 billion cubic metres of gas each year, expires at the end of 2010.

Bulgargaz hopes to agree the same amount in the ongoing talks with Gazprom Export. The other contracts, for approximately 2 billion cubic metres, expire at the end of 2011.

Mr Gogov said that "We still hope Bulgaria will sign a direct supply agreement with Gazprom Export."

He explained the price decrease could come through change in the base values in the price formation formula and through removing intermediaries.

Bulgargaz expects to receive the Russian offer by August 10th 2010. It should respond to the proposal within two weeks before the two companies could return to the talks table within the following 14 days.

(Sourced from www.dnevnik.bg)