Bulgarian state-owned gas distributor Bulgargaz has decided to delay by one more week the cutoff of its supplies to the insolvent Bulgarian steel mill Kremikovtzi over unpaid bills. The gas supply cut may result in the mill closing its main production facilities, which are already operating with minimum gas consumption.
According to Kremikovtzi's executive director Plamen Stoyanov, the gas deliveries will be conditioned on the final outcome of the negotiations with Brazilian steelmaker Companhia Siderurgica Nacional (CSN) for a tolling deal to buy coke from Kremikovtzi. In addition, Mr. Stoyanov denied media reports that CNS had confirmed that it was no longer interested in the mill.
Commenting on the negotiations with CSN, Bulgaria's minister of energy and economy Petar Dimitrov said, "If the outcome of the talks is successful then we will produce and sell coke. If the talks end within a few days, Kremikovtzi will continue working. However, if the talks are unsuccessful, the factory should be shut down."
Meanwhile, workers at Kremikovtzi have been continuing their protests, accusing the government of showing no interest in their fate, and have pledged to approach the European Commission for help. They have announced plans for more aggressive forms of protest and for a nationwide strike of people working in the sector in a bid to protect the mill.
As SteelOrbis previously reported, Bulgargaz originally planned to cut off gas supplies to Kremikovtzi on April 1, 2009; however, it then decided to delayed the cutoff by one week, giving the government time to negotiate with prospective investors in the mill.