Taking into account the pricing specifics of spot LNG supplies and the strong volatility of the TTF index, Bulgargaz EAD has launched a preliminary selection procedure for LNG suppliers and traders who will be invited to submit binding offers for delivery in the tenders announced by Bulgargaz EAD for the supply of LNG in the period June 2025-June 2026.
I. REQUIREMENTS FOR PARTICIPANTS:
- Sources of LNG supply - the source must be from countries without sanctions, embargoes or any trade restrictions;
- Ownership of the company - the ownership (ultimate beneficiary) must be clear, and with good commercial reputation and free of interest in companies from countries subject to sanctions, embargoes or any trade restrictions;
- Credibility with banks and reputation - the supplier company must be acceptable to banks and credible for financing the agreed supplies;
- Have experience in LNG supply - total LNG supply of at least the equivalent of 2 000 000 MWh ≈ 6 800 000 MMBtu for the last three years;
- Not be in liquidation or insolvency proceedings and not be declared insolvent under the national law of registration.
- No data for historical Contract Non-Performance and Pending Litigations
II. PRE-SELECTION OF CANDIDATES
All interested companies who wish to participate in the future tender procedures of Bulgargaz EAD for LNG supply in the period 01.06.2025 - 30.06.2026, according to the below general terms and conditions, should submit to Bulgargaz EAD by e-mail to the following address: tenders@bulgargaz.bg a letter of intent, indicating their interest in being included in the list of approved LNG suppliers and traders. The letter should be accompanied by:
- completed Bulgargaz EAD’s KYC Questionnaire, as per the template - Annex 1 to these Terms and Conditions
- standard MSPA
In case the applicant has participated in previous tender procedures of Bulgargaz EAD for the supply of LNG and has been admitted to the stage of submitting a binding offer, it is not necessary to submit a letter of intent and will be invited to submit offers in the relevant tenders.
In case the applicant has participated in previous tender procedures of Bulgargaz EAD for the supply of LNG, has been admitted to the stage of submission of a binding offer, and there is no change in the circumstances declared in the Questionnaire, it is not necessary to submit a completed Questionnaire.
In case the applicant has signed a bilateral MSPA with Bulgargaz EAD for the supply of LNG, it is not necessary to provide a standard MSPA.
No applicant will be admitted to tender:
- who has not submitted a completed KYC Questionnaire to Bulgargaz PLC according to the template - Annex 1;
- in the questionnaire of which there is insufficient information, or the information indicates that it does not meet the requirements for participation in the procedure.
- who has not submitted a standard MSPA.
III. TENDER PROCEDURES
All participants that have passed the pre-selection procedure and are included in the list of Bulgargaz EAD for approved suppliers and traders of LNG will be duly informed. When tenders for the supply of LNG are organised, according to the needs of Bulgargaz EAD, invitations will be sent to all approved participants to submit binding offers for the supply of LNG, the general terms and conditions of supply are set out below.
The Invitation will contain all the specific delivery requirements of Bulgargaz EAD, an offer template and a Methodology for evaluation of the offers.
GENERAL ТERMS AND CONDITIONS FOR SUPPLY OF LNG FOR THE NEEDS OF BULGARGAZ EAD
I. TERMS OF DELIVERY:
1. Quantity of cargo for delivery: to be specified in the invitation to submit a binding offer
Size of the cargo:
- 500 000 MWh≈ 1 700 000 MMBtu
- 1 000 000 MWh ≈ 3 400 000 MMBtu
1.2 Delivery Point (unloading): FSRU Alexandroupolis Greece and/or terminal in Turkey. The place of unloading shall be specified in the invitation to submit a binding offer, the Buyer shall have the right to change the receiving terminal initially indicated 7 days before the delivery window latest.
1.3 Minimum/maximum deviation of the quantity delivered from the quantity nominated:
+-5% for delivery to a terminal in Turkey
+- 2% for delivery to FSRU Alexandroupolis
2. LNG Quality:
For delivery to Turkey:
The Gross Calorific Value of each standard cubic metre of gas (dry gas basis) shall be not less than 8750 kcal (eight thousand seven hundred and fifty kcal) and not greater than 10 427 kcal (ten thousand four hundred and twenty-seven kcal).
The components should be between the following lower and upper limits (as mole percentages) [Reference conditions: 150C/150C/ideal gas]:
|
Chemical composition |
Min. % |
Max. % |
|
Methane CH 4 |
84.79 % |
100.00 % |
|
Ethan C H 26 |
0.00 % |
10.00 % |
|
Propane C H 38 |
0.00 % |
4.00 % |
|
iC H 410 |
0.00 % |
1.00 % |
|
nC H 410 |
0.00 % |
1.50 % |
|
C H 512 |
0.00 % |
0.23 % |
|
N 2 |
0.00 % |
1.40 % |
|
Higher calorific value |
8,900 Kcal/Sm 3 |
10,427 Kcal/Sm3 |
|
Wobbe number |
47,30 Mj/m 3 |
53.95 Mj/m3 |
|
H S 2 |
- |
5.0 mg/Nm3 |
|
Merkaptanova Syara |
- |
5.0 mg/Nm3 |
|
Total sulphur, including mercaptans |
- |
50 mg/Nm3 |
• Hydrocarbon Dew Point: shall not be higher than -5°C in the range of 1 to 80 barg.
• Water Dew Point: shall not be higher than -8° C at 80 barg pressure
• LNG shall not cover particles of a size that does not pass through a 0.0098 inch sieve.
• LNG shall not include water, oxygen and carbon dioxide.
• There shall be no active bacteria or bacteria coating materials in the LNG, including but not limited to bacteria that reduces sulfate or produces acid.
• LNG shall be free of poisonous and hazardous materials.
For delivery to FSRU Alexandroupolis
LNG delivered must meet the technical requirements of the DESFA pipeline network as specified in the DESFA Network Code. The quality of the LNG offered shall be in full compliance with the general requirements of the Terminal Operator at Alexandroupolis (Gastrade SA), as follows:
|
Value |
Unit |
Specifications |
Notes |
|
Wobbe Index |
KWh/Nm3 |
13.066-16.328 |
|
|
Gross Calorific Value (GCV) |
KWh/Nm3 |
11.131-12.647 |
The Operator may consider the possibility of accepting a cargo with GCV in the range 11.011KWh/Nm3 to 11.131KWh/Nm3or 12.647 KWh/Nm3 to 12.986 KWh/Nm(3), if after unloading this cargo and mixing with the stored LNG in terminal tanks, the GCV of the resulting LNG will be within the mentioned range. |
|
LNG Density |
Kg/m3 |
430 - 478 |
The Operator may consider the possibility of accepting a cargo in the range 420.3 Kg/m3to 430 Kg/m3or 478 Kg/m3to 483.1 Kg/m3, if after unloading this cargo and mixing with the stored LNG in terminal tanks, the Density of the resulting LNG will be within the mentioned range. |
|
Molecular Weight |
Kg/Kmol |
16.52 - 18.88 |
|
|
Methane |
% mole |
85.0 min 97.0 max |
The Operator may consider the possibility of accepting a cargo with Methane concentration in the range 80 to 85 % mole or 97 to 99.8 % mole, if after unloading this cargo and mixing with the stored LNG in terminal tanks, the value of Methane concentration of the resulting LNG will be within the mentioned range. |
|
i-Butane & n-Butane |
% mole |
4 max |
|
|
i-Pentane & n-Pentane |
% mole |
2 max |
|
|
Nitrogen |
% mole |
1.24 max |
|
|
Hydrogen sulphide (H(2)S) |
mg/Nm3 |
5.0 max |
|
|
Total sulphur |
mg/Nm3 |
30.0 max |
|
|
Temperature |
0C |
-159.5 max |
The average temperature of LNG in all tanks of LNG vessel at the loading port should not be greater than -159.5°C. |
|
LNG Tank Pressure |
mbar(g) |
100 max |
On arrival |
3. Delivery terms - DES (Delivery Ex-Ship) LNG terminals in Turkey/FSRU Alexandroupolis in Greece.
The protocols and guidelines to be followed by each LNG vessel during the arrival and operations at the FSRU Alexandroupolis are posted at https://www.gastrade.gr/wp-content/uploads/2024/02/Marine-Manual-v1.04.pdf
4. Delivery Window - the month/window of delivery will be specified separately for each tender.
5. Seller's liability
In the event the Seller fails to deliver the quantity or any portion thereof, unless due to Force Majeure, Seller shall pay Buyer an amount equal to (i) if Buyer fails to purchase replacement gas, Buyer's cost, associated with the failure or termination of the Resale Arrangements with respect to Seller's undelivered quantity, including Buyer's respective facility costs, capacity booking, transportation, reasonable marketing costs and other costs incurred by Buyer, if any, as a result of Seller's failure to deliver; or (ii) if Buyer purchases replacement LNG or gas to replace Seller's undelivered quantity, the amount by which the price paid by Buyer for the replacement gas exceeds the Contract Sales Price multiplied by Seller's undelivered quantity, plus additional transportation and logistics costs, if any, plus other reasonable costs incurred by Buyer, if any, less any cost savings (including transportation costs) realized by Buyer.
6. Demurrage
The demurrage rate on a daily and pro rata basis is the rate published under the heading Atlantic "Shipping Rate" in Platts LNG Daily on the relevant scheduled delivery date. If the Platts Rate is not published on the applicable Scheduled Delivery Date, then the Demurrage Rate shall be the last published Platts Atlantic Rate immediately applicable to the Scheduled Delivery Date. The Seller has the obligation to provide evidence of how the demurrage was calculated.
In the event of demurrage resulting from adverse weather conditions, the Buyer shall not be liable for demurrage payments.
7. Method and terms of payment upon conclusion of a contract:
- the amount of the advance payment: may not exceed 50%;
- advance payment deadline: not earlier than 15 days before the delivery date;
- number of days for payment after unloading: not less than 10 days.
Collateral in the form of a corporate and/or bank guarantee shall not be provided by Bulgargaz. Offers requiring Bulgargaz to provide security for the advance payment (such as a bank guarantee, corporate guarantee, etc.) will not be considered.
8. Additional costs that may be incurred by Bulgargas EAD upon delivery: to be specified by the participants
Bulgargaz EAD reserves the right to announce LNG supply tenders for each month separately or for several months at a time, according to its needs and portfolio.
Bulgargaz EAD reserves the right to change the general terms and conditions as a result of changes in the requirements of the receiving terminals and the financial performance of the company. In the event of a change to the general terms and conditions, Bulgargaz EAD shall inform potential participants in a timely manner via its website and by means of a dedicated communication to the already approved suppliers and traders.