1. ENERGY IMBALANCES AND BUSINESS CLIMATE Kamen Kolev, Vice Chair, Bulgarian Industrial Association Conference on the Future of Natural Gas 26 March 2013

2. Re-industrializing the economy 20% СО 2 reduction 20% RES share in energy use 20% rise in energy efficiency 20% share of industry in the GDP

3. Natural gas prices for the households, 2013 € /unit ЕU28  14,0 ЕU11  14,8 BG  11,9

4. Natural gas prices for the industry, 2013 € /unit ЕU28  10,6 ЕU11  11,0 BG  9,9

5. Energy imbalances Regulated market households – industry Free market domestic consumption – export ЕU28  14,0 / 10,6 = 1,32 BG  11,9 / 9,9 = 1,20

6. Energy productivity, 2012, €

7. Natural gas consumption per capita Source: BP

8. Measures 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 СО 2 allowances and use of the proceeds for gasification

9. The role of the state Independence of the regulator Ensure security of supply Overcome supply deficits

10. 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

11. The future of natural gas coal The fuel of 19 th c. – coal crude oil The fuel of 20 th c. – crude oil natural gas The fuel of 21 st c. – natural gas Global natural gas consumption will double in the next 20 years

12. ENERGY IMBALANCES AND BUSINESS CLIMATE Kamen Kolev, Vice Chair, Bulgarian Industrial Association Conference on the Future of Natural Gas 26 March 2013