Bulgarian state-owned company Bulgargaz has submitted a proposal to the Energy and Water Regulatory Commission (EWRC) for a slight reduction in natural gas prices starting in June, Novinite reports.

If the proposal is approved, natural gas costs in June will be around 35.62 euros per megawatt-hour (MWh), excluding taxes and fees, a 1% decline compared to May (when they were 35.98 euros per MWh), the company’s head, Veselin Sinabov, announced.

“The proposed price for June is 35.62 euros per MWh, almost one percent lower than the May level,” Sinabov said, presenting the company’s updated calculations.

Bulgargaz stressed that the gas price structure continues to benefit from long-term contracts, especially with Azerbaijan, which remains a key component of supplies to Bulgaria via the IGB interconnector (between Greece and Bulgaria). The company also purchases liquefied natural gas (LNG) from international traders.

According to the company, gas volumes from Azerbaijan help keep domestic prices below the European benchmark. Recent data shows that at the TTF gas hub in Amsterdam, where European benchmark prices are set, natural gas futures quotes were trading at 46.40 euros per megawatt-hour (MWh), higher than in Bulgaria.