Prices and demand for natural gas in Bulgaria and Europe is amongst the highest in the world given the limited supply and steadily increasing demand. Russia is a dominant supplier for both Europe and Asia. Bulgaria imports 90% of its natural gas at prices over 300% the market prices in North America. Russian natural gas has been the prime source of natural gas to Bulgaria since 1974. In 2010 according to provisional data, Gazprom supplied the country with some 2.6 billion cubic meters of gas.
The high cost of natural gas in Bulgaria and Europe is one of the main drivers for exploration of regional gas opportunities. Compared with North America, natural gas prices have ranged between 250% – 300% higher for LNG (line natural gas) due to the high cost of pipeline transport from Russia and the dominant role Russia has on the natural gas supply in the continental region.