Annual Report
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2013 Annual Report 2013 Year of the GAZELLE 2010 2011 2012 2013 Cornerstone Operation launch 2011–2012 Operation launch of the Brandov of the Brandov Line section of the GAZELLE of the GAZELLE pipeline Border Transfer Border Transfer pipeline construction Station Station 2013 was the first year of operation 166 km 8.4 MPa 33.5 billion m3 for the new GAZELLE pipeline. pipeline length pressure annual transmission capacity It operated smoothly, safely and reliably all year. 3.74 million m3 hourly transmission capacity GAZELLE in dates GAZELLE, which runs through the Ústí and Plzeň regions 2006 Start of preparatory work, of the Czech Republic, connects to the Nord Stream and preliminary studies OPAL pipelines, forming a link in a new strategic trans- mission route supplying Western Europe with gas. By the 2007 Study covering alternative route launch of the pipeline operation, NET4GAS has also ful- filled one of the objectives set out in a Policy Statement 2007–2008 Environmental Impact Assessment (EIA) of August 2010 by the Czech government: 2008–2010 Development planning procedure “The Government will continue with the process of in- DN 1400 39 km creasing the energy security of the Czech Republic, and 2008–2011 Tendering procedures for the contractor particularly with the diversification of its energy sources and material suppliers pipeline diameter length of welds and transmission routes. The Government will support the strengthening of energy networks in the directions west- 2008–2012 Dealing with land ownership issues east and north-south, the construction of underground gas storage facilities and the construction of the GAZELLE 2010 Cornerstone of Brandov Border and Nabucco gas pipelines, and will maintain ongoing Transfer Station dialogue with producer countries.” 2010 Connection to OPAL pipeline 2011–2012 Process of obtaining a construction N S EST certificate RUS 2011 Launch of operation of the Brandov LV DK NORD STREAM Border Transfer Station 3 LT 120,000 t 245,000 m RUS 2011–2012 Construction of the pipeline line sections BY weight volume of pipeline 2013 Launch of pipeline operation OPAL D PL MEGAL GAZELLE UKR CZ SK Contents 9 Foreword by the CEO For more than 40 years our net 10 Company Profile 14 Ownership and Organisational Structure for gas has been connecting energy 20 Report on Operations 22 Key Economic Indicators markets, guaranteeing security and 23 Main Events 31 Human Resources reliability, operational excellence, and 32 Environmental Protection 33 Health and Safety at Work innovative solutions to uphold our 33 Post Balance Sheet Events 34 Internal Control Principles commitments to future generations. 38 Corporate Philanthropy 47 Persons Responsible for the Annual Report 48 Financial Statements 56 Notes to Financial Statements 76 Supervisory Board Report NET4GAS Connecting Markets 77 Report on Relations 84 Auditor’s Report on the Financial Statements 86 Auditor’s Report on the Annual Report and Report on Relations 88 Abbreviations Used 9 Foreword by the CEO Ladies and Gentlemen, For NET4GAS, 2013 was a year of challenges, of changes, and Over the last five years we have invested more than 10 bil- also of achievements. In terms of strategy, these were mainly lion Czech crowns into the development of the transmission connected with completing the transformation of the com- system in the Czech Republic. Our new investors – Allianz pany’s ownership structure. At the operational level, the key Infrastructure Czech HoldCo II S.à r.l. and Borealis Novus theme was the successful launch of the GAZELLE pipeline, on Parent B.V. – are strong and forward-looking owners, and are time and on budget. behind us 100% in our next phase of growth. I would first like to thank all the company’s personnel, who If we are to invest another 10 billion crowns over the me- have given their very best to help NET4GAS grow and achieve dium-term horizon, however, we need to see a stable and solid financial results. Operational excellence in every area – well-functioning regulatory environment. Only then can we internal efficiency, environmental protection, safety and reli- invest our own efforts into creating an equally stable and ability – is the cornerstone of our strategy and the basis for well-functioning gas market, to ensure the security of supply our daily work. And in 2013 we added another 365 days to at reasonable prices along with sustainable development. In last year’s 1,000-day milestone without a single employee in- this respect, 2014 will be a crucial year and we will be closely jury, which ranks us among the leading companies in terms following the preparations for the forthcoming regulatory of safety at work. period. In January 2013, we proudly confirmed that our vision of We will continue to support market integration in Central Connecting Markets is far more than just a marketing claim. and Eastern Europe by promoting a market-oriented strat- With the launch of the GAZELLE pipeline, we connected up egy, along with expanding cross-border collaboration aimed the New Northern Route for gas, significantly reinforcing the at greater security of gas supply for Europe. Several of our energy security of the Czech Republic and its neighbouring market interconnection projects were awarded the status of markets. GAZELLE operated smoothly, safely and reliably EU Project of Common Interest in 2013. Our vision of con- all year. necting markets continues to develop. We also successfully completed the Connection to the Tvr- Not least of all, I would like to thank our owners, customers, donice Underground Gas Storage facility, the last of our suppliers and other partners for their active cooperation. projects co-financed by the EU under the European Energy Working together, we can all achieve positive results, based Programme for Recovery. Their objectives were to increase on a committed and responsible vision for the future. reverse-flow capacities, to strengthen the security of supply, and to further the development of a market environment in gas trading. Naturally, we are also focusing our development activities on the Czech domestic market, ensuring safe and reliable gas transmission services and sufficient capacities, while fulfill- Andreas Rau ing our commitment to the environment. In this area, our Managing Director and CEO Moravia project is one of our most important medium-term NET4GAS, s.r.o. undertakings. Company Profile Our services NET4GAS 12 13 Our strategy at a glance International transit of natural Holds an exclusive gas Transmission System Operator Our vision NET4GAS will become the leading transmission system (TSO) licence in the Czech Republic. gas across the Czech Republic operator in Central Europe, connecting European gas markets Has sufficient transmission capacity to satisfy both and offering state-of-the-art gas transmission services. domestic and foreign demand. National transmission of natural gas to our partners Transmits 45 billion m3 of natural gas every year Our mission is to secure safe and reliable gas transmission ly and ecologically. We are monetising our gas infrastructure (of which around 1/5 is for domestic consumption). services for our customers 24 hours a day, 7 days a week, to by offering a range of customer-oriented capacity products, in the Czech Republic provide sufficient capacity, and to guarantee a non-discrimi- which contribute to efforts aimed at creating a competitive Operates more than 3,800 km of pipelines. natory and transparent approach. gas market. We are also shaping our future by taking a pro- active role in European structures, thus allowing us to play Operation of a flexible, Operates three border transfer stations, five compressor In line with the vision of the European gas target model, we a part in the development of the future European gas model. demand-oriented transmission stations*, and nearly a hundred transfer stations for the are focusing our strategy on the efficient and demand-ori- Our goal is to secure safe and reliable gas transmission, and purpose of domestic distribution. ented management of our transmission system. We are em- so everyday operational and commercial excellence is a prior- system, and the provision ploying the latest technologies to develop our transmission ity for our highly qualified team. of associated commercial and Is a member of the Czech Gas Association, system in the Czech Republic, and creating new cross-border the international organisations ENTSOG, GIE, EASEE-gas interconnectors which will form the foundation for further We are fully aware of our corporate social responsibility, and technical products and services and Marcogaz working groups. market connection, and ultimately market integration. At the we strictly follow an environmental policy committed to fu- same time, we also operate our transmission system efficient- ture generations. Has more than 500 employees. Is committed to its corporate social responsibility. Is the Czech Republic’s largest private corporate donor in the field of nature conservation. Net4GAS Connecting Markets * As at 31 December 2013. Since 1 January 2014, NET4GAS has been operating four compressor stations (see the section “Decommissioning of Hostim Compressor Station”). Asset Innovative Market We provide our customers with Development Solutions Design safe and reliable gas transmission services 24/7. Operational and commercial excellence for a safe, reliable and environmentally friendly transport service carried out by highly qualified personnel Ownership and Organisational Structure Owner Supervisory