Changes in the existing transit gas agreement between Bulgaria and Russian energy company Gazprom would lead to increase in petroleum and gas prices, Industry Watch said.

At present Gazprom pays for transit passage through Bulgaria by delivering gas at preferential prices. If the agreement is changed, petroleum and gas prices in Bulgaria would increase by 8.7 to 11.3 per cent in 2006, Industry Watch said.

The price increase would affect mostly the energy and the chemical industries. Annual expenses in 2006 were expected to rise by 14 per cent in the energy and by 12 per cent in the chemical industries, mediapool.bg reported.

The changes would also increase higher current account deficit by five per cent, which is 0.8 per cent of the GDP in 2006.
The construction of Bourgas-Alexandroupolis, Bourgas-Vlora and Nabucco petroleum and gas pipelines, would cost from six to seven billion euro. The execution of the projects depended on the transit gas agreement, mediapool.bg said.

Foreign investment in these projects is expected to reach from 1.3 to 1.5 billion euro or nearly five per cent of the total foreign investment for the coming four years.