THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM IN THE REPUBLIC OF CROATIA FOR 2014 – 2023
President of the Management Board
Marin Zovko
Zagreb, July 2014
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
TABLE OF CONTENTS
1. INTRODUCTION ...... Error! Bookmark not defined. 2. CIRCUMSTANCES AND STARTING POINTS FOR PREPARING THE PLAN ...... 2 2.1. LEGAL REGULATION ...... Error! Bookmark not defined. 2.2. ENERGY DEVELOPMENT STRATEGY AND PROGRAM FOR IMPLEMENTATION OF ENERGY DEVELOPMENT STRATEGY ...... 3 2.3. CIRCUMSTANCES IN THE GAS MARKET IN THE REPUBLIC OF CROATIA ...... 4 3. CURRENT STATUS OF DEVELOPMENT AND EXPLOITABILITY OF THE GAS SYSTEM ...... 5 3.1. GAS TRANSMISSION SYSTEM ...... Error! Bookmark not defined. 3.1.1. Transmission system entries...... Error! Bookmark not defined. 3.1.2. Transmission system exits ...... Error! Bookmark not defined. 3.1.3. Maximum daily loads ...... 11 3.2. NATURAL GAS STORAGE SYSTEM ...... Error! Bookmark not defined. 3.3. GAS DISTRIBUTION SYSTEMS ...... Error! Bookmark not defined. 3.4. DEVELOPMENT OF NATURAL GAS CONSUMPTION SO FAR ...... 17 3.5. DEVELOPMENT OF SOURCE OF NATURAL GAS SUPPLY SO FAR – DOMESTIC PRODUCTION AND IMPORT ...... 18 4. FOUNDATIONS OF FURTHER DEVELOPMENT OF THE GAS TRANSMISSION SYSTEM ... 19 4.1. EXPECTED NEEDS OF THE NATURAL GAS DOMESTIC MARKET AND PLANNED CONSUMPTION ...... 19 4.2. ENSURING NATURAL GAS FOR DOMESTIC MARKET ..... Error! Bookmark not defined. 4.2.1. Expected domestic production of natural gas ...... 21 4.2.2. Expected import of natural gas ...... 22 4.2.3. Existing and new supply routes ...... 22 4.3. EXPECTED TRANSMISSION OF NATURAL GAS FOR THE NEEDS OF THE GAS MARKET IN NEIGHBORHOOD OF RH ...... 26 4.4. EXPECTED TRANSMISSION OF NATURAL GAS FOR THE NEEDS OF STORAGE ...... 28 4.5. TOTAL EXPECTED TRANSMISSION THROUGH THE GAS TRANSMISSION SYSTEM ..... 30 4.6. ENSURING THE PRECONDITIONS OF SECURITY OF RELIABLE NATURAL GAS SUPPLY AND FULFILLING THE REQUIREMENTS OF THE REGULATION (EU) NO. 994/2010 CONCERNING MEASURES TO SAFEGUARD SECURITY OF GAS SUPPLYError! Bookmark not defined.
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.7. ENSURING THE PRECONDITIONS OF DEVELOPMENT OF NATURAL GAS MARKET .... 35 4.7.1. Ensuring the requirements of transparency-availability of information to users ...... 35 4.7.2. Balancing in transmission system on the market bases ...... 36 4.7.3. Congestion management in the transmission system ...... 36 4.8. TECHNICAL AND OPERATIVE COMPLIANCE WITH OTHER TRANSMISSION SYSTEM OPERATORS ...... 38 4.9. TRANSMISSION SYSTEM RECONSTRUCTIONS...... Error! Bookmark not defined. 5. DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM ...... 40 5.1. INVESTMENT PROJECTS ...... 40 5.2. DEVELOPMENT PROJECTS...... Error! Bookmark not defined. 5.2.1. Basic gas transmission system ...... Error! Bookmark not defined. 5.2.2. Interconnections ...... 52 5.2.3. Other projects ...... 54 6. COMPLIANCE WITH THE NON-BINDING TEN-YEAR NETWORK DEVELOPMENT PLAN OF THE EUROPEAN UNION ...... 56 6.1. Compliance with the non-binding Ten-Year Network Development Plan of the EU for 2011– 2020...... 56 6.2. Compliance with the non-binding Ten-Year Network Development Plan of the EU for 2013-2022...... 57 7. FINANCING ...... 58 8. CONCLUSION ...... Error! Bookmark not defined.
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
1. INTRODUCTION
The Ten-Year Development Plan of the Gas Transmission System in the Republic of Croatia for 2014 – 2023 (hereinafter referred to as the Ten-Year Plan) has been prepared by the Croatian transmission system operator, the company Plinacro Ltd., Zagreb, which obtained a permit for performing the gas transmission energy activity (register number of the permit: 080304171-0030-08/03) from the Croatian Energy Regulatory Agency (hereinafter referred to as the Agency) on 10 November 2003.
The aim of the Ten-Year Plan is to point to the gas market participants at the main transmission infrastructure, which will be built and extended in the first regulation period from 2014 to 2016 and at the investments about which the decision on construction has been made and to show the Ten- Year Plan projections.
The Ten-Year Plan is made at the moment at which no final decision has been made on investment in the projects such as the LNG in Omišalj, the Ionian Adriatic Pipeline – IAP/TAP-Trans Adriatic Pipeline and the South Stream, being the key projects for the further development of the Croatian gas transmission system.
At the time of the Ten-Year Plan's approval, the Agency has checked its compliance with the Energy Development Strategy of the Republic of Croatia and the non-binding Ten-Year Network Development Plan of the European Union (TYNDP).
1
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM 2. CIRCUMSTANCES AND STARTING POINTS FOR PREPARING THE PLAN
2.1. LEGAL REGULATION
The Republic of Croatia, as a member state of the European Union, has undertaken to adjust the Croatian energy sector and the energy legislation to the European Union's Third Package of Energy Rules. The basic requirements of the Third Package of Energy Rules are transparency, system operator unbundling, authorization increase and regulator coordination, consumer protection, long- term contract treatments, infrastructure investments, access to storage facility and strategic storage.
For the purpose of performing the mentioned obligation, the Government of the Republic of Croatia has passed the energy legislative package such as the Gas Market Act (Official Gazette No. 28/2013, 14/2014), the Energy Act (Official Gazette No. 120/2012, 14/2014) and the Act on the Regulation of Energy Activities (Official Gazette No. 120/2012).
Acquis communautaire from the energy area has been brought to the legislation of the Republic of Croatia by the mentioned laws, and particularly Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas (L 211, 14.08.2009).
Market organization, rights, duties and responsibilities of the market participants, consumer protection, concessions in natural gas distribution, unbundling of activities, organization of access to the gas system and cross-border transmission of natural gas are regulated by the Gas Market Act.
The Energy Act regulates measures for safe and reliable supply of energy and its effective production and use, acts regulating and implementing the energy policy and energy development planning, performing energy activities in the market or as a public service and basic issues for performing energy activities. The Act on the Regulation of Energy Activities regulates the establishment and implementation of the system of the regulation of energy activities, the procedure of establishment of the authority for the regulation of energy activities and other issues which are important for the regulation of energy activities.
In addition to the mentioned laws and effective general acts, the gas market participants are obliged to fully apply the Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks, Annex to the Regulation No. 685/2010 and Annex to the Regulation No. 347/2013. The aim of the Regulations is to lay down non-discriminatory rules and conditions for access to the natural gas transmission systems, to the facilities for liquefied natural gas (LNG) and storage facilities, taking into account specific features of the national and regional market.
2
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
As the Republic of Croatia has joined the European Union, the Regulation (EU) No. 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply is also binding. This Regulation determines the provisions to safeguard security of supply by creating proper and complete functioning of the gas market, enabling the implementation of extraordinary measures when the market is not in a position to ensure necessary natural gas supply (for more information see Chapter 4).
The following Network Code such as Capacity Allocation, Congestion Management, Balancing Network Code Interoperability and Data Exchange Rules will be also used in the gas market in the forthcoming period.
2.2. ENERGY DEVELOPMENT STRATEGY AND PROGRAM FOR IMPLEMENTATION OF ENERGY DEVELOPMENT STRATEGY
The Energy Act (Official Gazette No. 120/2012, 14/2014) defines the Energy Development Strategy as a basic act for the determination of the energy policy and the planned energy development.
The same act defines the Program for Implementation of the Energy Development Strategy as a basic operational act for the determination of measures, activity holders and schedule for the realization of energy policy and implementation of national energy programs, method for the realization of cooperation with local and regional self-administration authorities in the field of planning the energy sector development and cooperation with energy entities and international organizations.
The valid Energy Development Strategy of the Republic of Croatia was adopted at the session of the Croatian Parliament on 16 October 2009. Chapter 13 provides the preparation of the Program for Implementation of the Energy Development Strategy of the Republic of Croatia for the determination of measures and activity holders and schedule for the realization of energy policy for the period of following four years. However, that program has not been adopted. The fact is that it has also been recognized in the Economic Recovery Plan of the Government of that time as an essential component and precondition for further development and significant investments in the energy sector. Its non- adoption is justified by the need for making strategic decisions associated with the compliance of our legislative framework with the EU Third Energy Legislation Package.
According to the above mentioned facts, it is evident that the Energy Development Strategy of the Republic of Croatia is a base for the preparation of the Ten-Year Plan. This Strategy has been adopted for the period by 2020 with an overview and a framework projection for the period by 2030.
3
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
2.3. CIRCUMSTANCES IN THE GAS MARKET IN THE REPUBLIC OF CROATIA
The basic condition for opening the gas market in the Republic of Croatia is a developed gas infrastructure and the integration of Croatian and European natural gas market. At the time of preparation of the Ten-Year Plan, ten active out of thirteen registered balance group leaders have appeared in the Croatian gas market, which under the same regulated conditions and at the regulated price have the right to access to the transmission system, respecting the principles of equality, non-discrimination and transparency. In this way the gas market has moved from the up-to- then phase of the declaratively open market to the phase of the really open market and consequently the clearly proclaimed aims and requirements of the Third Energy Legislation Package have started to be implemented in the reality.
The Republic of Croatia, as the EU member state, has undertaken to respect legal frameworks for defining organization rules and gas trading in the European market. Market liberalization will be realized by the full implementation of European energy laws and regulations and the conditions for participating in the "open European gas market" will be made possible and it actually means to abolish legal and administrative obstacles for entering of gas suppliers and traders into the Croatian market. In this way present and future gas suppliers and traders will have the possibility to offer gas prices to consumers which are formed on the market conditions.
Open gas market should result in the achievement of competitiveness in the European gas market, security of natural gas supply and free selection of gas supplier with no additional costs.
For the purpose of realizing preconditions for liberalization of the Croatian gas market, the following activities have been planned by the Ten-Year Plan by Plinacro as one of the main gas market participants in the territory of the Republic of Croatia: the continuation of gasification of the Republic of Croatia in order to achieve more uniform economic development, availability and possibility of energy source selection for all potential gas consumers, reliable and safe transmission of natural gas, maintenance of full availability of the gas transmission system and technical-technological preconditions for full liberalization of the gas market in the territory of the Republic of Croatia and integration with the European gas market as well as free trade in gas and capacities both on local and regional levels.
4
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3. CURRENT STATUS OF DEVELOPMENT AND EXPLOITABILITY OF THE GAS SYSTEM
3.1. GAS TRANSMISSION SYSTEM
The transmission system in the Republic of Croatia consists of international, main, regional, and connecting gas pipelines and pipeline facilities of operating pressure of 75 and 50 bar and measuring- reduction stations of different capacities. Technical – technological aspects have been adjusted with the needs of users of the transmission system by means of the existing organization and territorial propagation of the transmission system for the purpose of ensuring security and reliability of gas transmission and delivery with the optimisation of maintenance and operating costs.
Total gas pipeline length in the transmission system is 2.662 km, from that 952 km of operating pressure of 75 bar and 1.710 km of operating pressure of 50 bar.
157 measuring-reduction stations with 282 measuring lines, 81 scraper stations and 137 other facilities (launching/receiving scraper station, gas node, launching/receiving scraper trap, entry measuring station, measuring-reduction node, launching scraper station) were built in the gas transmission system by 2013.
5
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM Map 1. Gas transmission system in the Republic of Croatia
6
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3.1.1. Transmission system entries
Gas enters into the transmission system of the Republic of Croatia from 2 supply routes (the Rogatec entry measuring station and the Dravaszerdahely entry measuring station), from the Panon production fields via 6 entry measuring stations such as the Molve EMS, the Etan EMS, the Gola EMS, the Hampovica EMS, the Ferdinandovac EMS and the Legrad EMS), from the Northern Adriatic production fields (the Pula terminal EMS) and from the Okoli underground gas storage during the winter period.
Table 1 shows quantities of gas delivered to the transmission system in 2012 and 2013
Table 1 Quantities of gas delivered to the transmission system for 2012 and 2013
2012 2013 (x106 kWh) (x106 kWh) %
EMS RH 15.409 13.120 -14,86%
Import 12.983 12.203 -6,01%
TOTAL 28.392 25.322 -10,81%
Okoli UGS 2.799 3.361 20,11%
OVERALL 31.191 28.684 -8,04%
Total technical capacity of transmission system entry without withdrawal capacity from the Okoli underground gas storage amounts to 191.8 million kWh/day. Table 2 shows technical capacities and maximum capacity usability of individual transmission system entries for 2013.
7
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Table 2 Capacities at entries into the transmission system in 2013
Technical capacity Maximum used Average capacity usability capacity (mil. kWh/day) (mil. kWh/day) (mil. kWh/day)
Rogatec EMS 48,4 45,2 27,8
Pula Terminal EMS 55,3 25,0 18,7
Total Panon 19,0 19,0 17,3
Dravaszerdahely EMS 69,1 25,7 5,6
TOTAL 191,8 115,0 69,4
Average technical capacity usability of the Rogatec entry measuring station amounted to 57,5 % during 2013 and 10,1 billion kWh of gas was taken over into the system via the Rogatec EMS. Technical capacity of the mentioned entry provided takeover of 17,7 billion kWh of gas.
Average technical capacity usability of the Dravaszerdahely EMS amounted to 8,13%, and total 2,05 billion kWh gas was taken over into the system during 2013. Technical capacity of the mentioned entry provided takeover of 25,2 billion kWh of gas.
8
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3.1.2. Transmission system exits
Total 28.715 million kWh of gas was delivered from the transmission system in 2013 (including exit for the Okoli UGS.
Technical capacities and maximum capacity usability of individual groups of exits from the transmission system in 2013 are shown in Table 3.
Table 3 Capacities at exits from the transmission system in 2013
Transmission system exits RH kWh/h Maximum used Technical capacity capacity Distribution systems 9.996.762 4.025.770 End customers connected to TS 5.693.478 2.597.761 Okoli UGS 1.617.600 1.519.349
Table 4 shows quantities of gas delivered at exits from the transmission system in 2012 and 2013 by categories of connected systems.
Table 4 Quantities of gas delivered at exits from the transmission system in 2012 and 2013 by categories of connected systems
2012 2013 (x109 kWh) (x109 kWh) %
distribution consumers 11.01 10.91 -0,99% direct industrial consumers 3.61 3.51 -2,70%
energy transformations 6.69 5.73 -14,26%
Petrokemija d.d., Kutina 5.73 5.76 0,39%
TOTAL 27.04 25.91 -4,20%
Okoli UGS 4.25 2.81 -33,77%
OVERALL 31.29 28.72 -8,22%
9
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
When observing the ratio of delivered gas quantities by Counties in the Republic of Croatia, maximum gas quantities are delivered in the territory of the City of Zagreb. Table 5 below shows the ratio of delivered gas quantities by Counties in 2013.
Table 5 Share of gas quantities delivered by Counties in 2013
County %
Bjelovar-Bilogora County 2,16
Brod-Posavina County 1,65
City of Zagreb 35,77
Istria County 0,54
Karlovac County 0,57
Koprivnica-Križevci County 1,41
Krapina-Zagorje County 3,39
Međimurje County 2,12
Osijek-Baranja County 6,99
Požega-Slavonia County 0,93
Primorje-Gorski Kotar County 8,67
Sisak-Moslavina County 24,87
Varaždin County 3,83
Virovitica-Podravina County 1,83
Vukovar-Srijem County 2,37
Zadar County 0,03
Zagreb County 2,87
10
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3.1.3. Maximum daily loads
Data on maximum daily loads are collected on a daily basis via the remote reading system. Maximum daily load amounted to 127 million kWh/day at the level of the system during 2013. Maximum daily load by customers in the distribution systems amounted to 74 million kWh/day and 56 million kWh/day by end customers in the transmission system.
Registered maximum daily loads in 2013 by months and by individual exit groups are shown in Figure 1.
Figure 1 Maximum daily loads in 2013
140 126 127 121 120 115 114 106
kWh) 100 6 79 74 (x10 72 80 70 71 68 61 56 56 59 55 52 53 52 /day 60 49 51 44 48 45 44 47 40 40 40 36 32 23 15 16 Quantity 20 11 11
0 Januarysiječanj Februaryveljača Marchožujak Apriltravanj Maysvibanj Junelipanj Julysrpanj Augustkolovoz Septemberrujan Octoberlistopad Novemberstudeni Decprosinacember
D.S. D.S. Krajnji End customers kupci onna TS TS T.S. T.S. Ukupno Total
The previous consideration has shown that the existing gas transmission system meets the current requirements of the Croatian natural gas market.
However, already at this moment the users' significant interest in the transmission on the route of the existing interconnections with Slovenia (Rogatec/Hum na Sutli) is shown. Both this and the age of the existing 50 bar interconnection (built in 1978) impose the need for the construction of the new 75 bar two-way Rogatec-Zabok-Lučko interconnection.
It is also necessary to ensure better pressure conditions in the system, increasing reliability, effectiveness and flexibility of the entire system in addition to ensuring the conditions of gas transmission for neighbouring countries. The construction of two compression stations is planned for that purpose and the construction of one of them is based on the existing contract about interconnection with the Hungarian transmission system operator.
11
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3.2. NATURAL GAS STORAGE SYSTEM Status and directions of the development of the natural gas storage system are determined in the Development Plan of the Gas Storage System of February 2014 on the basis of which the Agency has made to the energy entity Podzemno skladište plina d.o.o. the Decision on deduction of tariff items for gas storage and the Decision on the amount of tariff items for gas storage by which the tariff for gas storage service has been approved for the first regulation period.
The analysis of the need for the development of the gas storage system in the Republic of Croatia makes an integral part of this Plan and is based on several sources.
The first analysis of the need for development of the gas storage system in the Republic of Croatia was shown in details in the development plan of the gas storage system prepared by the company Podzemno skladište plina d.o.o. (the document with designation 280-2009/UD of 14 October 2009), according to which the current storage capacities are insufficient. This primarily refers to storage deliverability or withdrawal capacity of gas, whose current deficit is at the level of 80.000 m3/h and it is estimated at even 150.000 m3/h in 5 years. Consequently, the shortage of exit capacities from storage facilities is evident, imposing the need for increasing deliverability from the existing gas storage facility in Okoli, but also the construction of the so-called peak gas storage facility that would serve exclusively for covering gas consumption during the critical days when the available capacities of the storage facility in Okoli are not sufficient. Depending on the realization of new infrastructural supply projects, the need for additional storage volume may appear, i.e. for the construction of a new seasonal gas storage facility.
The study called the "Analysis of Gas Storage in the European Union, the Establishment of Strategic Gas Stocks and the Development of the Gas Storage System in the Republic of Croatia" was prepared by the Faculty of Mining, Geology and Petroleum Engineering in July 2012. According to the results of this study, further improvement of the natural gas storage system and its development in the following segments are necessary:
construction of a gas peak storage facility, construction of a new seasonal gas storage facility, and establishment of strategic gas stocks and planning of a strategic storage facility as a part of the gas infrastructure for gas storage.
The construction of the peak storage facility is necessary and the facility should have exit capacity of about 2 x 106 m3/day of gas (83.000 m3/hour) and would enable covering of the extreme peak consumption in the duration of about twenty days.
According to the mentioned study, and not later than by 2020, a new seasonal gas storage facility of operating volume of about 500 x 106 m3 should be built and if possible, an area for strategic gas stocks of volume of about 300 x 106 m3 should be ensured in the same geological structure (for reduction of total construction costs). Total deliverability of the facility should amount to 11 x 106 m3 /day. 12
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM On the occasion of the analysis of projections of the gas consumption movement in the Republic of Croatia and consequently of projections of the need for storage capacities, in addition to the studies made by the professional institutions, PSP d.o.o. independently prepares the analyses and the projections based not only on the submitted expert studies but also on constant contacts with potential customers which are either the most important natural gas consumers or gas suppliers and traders.
Their projections and business plans provide a more exact overview of the future development of the gas market affected to the greatest extent by the following elements:
- restructuring of Petrokemija as the largest individual industrial consumer of natural gas in the territory of the Republic of Croatia - investment plans relating to the construction of thermal power stations that use gas (two potential employers – HEP d.d. and CRODUX Plin d.o.o.) - strategic repositioning of the Republic of Croatia within the EU from the view of a transit country through which the natural gas supply routes pass towards the EU (conventional gas supply routes and the LNG terminal)
In case of the implementation of strategic plans (the construction of the LNG terminal and the TAP- IAP supply route), the gas storage activity should not be necessarily seen through the prism of domestic consumption and the needs for storage capacities covering it, but through the prism of an important link in the gas supply chain towards other much more potential markets.
The first step in the gas storage facility development is the orientation towards the domestic consumption and ensuring supply security (the short-term plan for the next regulation period). The second step of a significantly longer character depends on the development of gas consumption in the region, supply routes and future interconnections (the conditional development plan).
According to the above mentioned facts, the realization of the development of the gas storage facility system is planned through the following three phases:
1st phase: extension of the existing gas storage facility in Okoli – ongoing 2nd phase: construction of a peak storage facility in Grubišno Polje – by the end of 2018 3rd phase: construction of a new seasonal gas storage facility in Beničanci – conditionally. The Ten-Year Plan is also adjusted to the mentioned plans. No additional investments in the gas transmission system are required for commissioning of the new peak storage facility in Grubišno Polje as it is located in the close vicinity of the existing Kutina-Virovitica main pipeline whose capacities are sufficient.
In order to ensure as favourable as possible pressure conditions at entry into the existing Okoli underground gas storage, it is necessary to connect it to the 75 bar gas transmission system as well and therefore the construction of the new 75 bar gas pipeline from the Ludina gas node to the Okoli UGS is planned (table item 2.1.26). The construction of the Rogatec-Zabok gas pipeline (table item 3.1.8) and the Lučko-Zabok gas pipeline (table item 2.1.19) will inter alia enable Slovenian suppliers to use free storage capacities, what is for now possible only by replacing gas quantities with Ina (via virtual transmission).
13
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3.3. GAS DISTRIBUTION SYSTEMS
The natural gas distribution constitutes a significant component of the entire gas sector. The energy activity of gas distribution in the Republic of Croatia is performed by 36 energy entities. Total distributed gas quantities in the Republic of Croatia amounted to 10,91 million kWh in 2013, being by about 1% lower in relation to the distributed gas quantities in 2012.
14
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Map 2 Geographical allocation of gas distributors in the Republic of Croatia in 2012
15
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
According to the approved "Plan for the Development, Construction and Modernization of the Gas Transmission System of the Republic of Croatia for 2002-2011", Plinacro has covered almost 95% of the territory by the new gas transmission system, but the distribution system does not follow the development of the transmission system and this can best be seen in the example of Lika and Dalmatia.
The fact is that the development of distribution systems and natural gas consumption are very slow in the new areas of potential gasification where the conditions for its implementation have been created by the construction of a new gas transmission system. On the other hand, there is a decrease in consumption in the existing consumption areas where the transmission and distribution systems have been developed as a result of the economic crisis and measures for increasing energy efficiency.
In the areas of the Republic of Croatia where distribution systems have been developed, it is necessary to carry out certain reconstructions on the technological facilities of the transmission system in order to enable a safe and reliable gas supply to the system users.
Furthermore, the Ten-Year Plan provides the reconstruction of the following facilities: the Slobodnica GN – the Slavonski Brod GN DN 500/75 bar, the Kozarec GN – the Lipovica MRS DN 100/50 bar, the Kozarac – Stružec CS DN 100/50 bar, Donji Miholjac – Osijek DN 300/50 bar, Rogatec – Zabok DN 500/50 bar and Zabok – Kumrovec DN 150/50 (Table 15 Basic gas transmission system, 2.1. Gas pipelines, 2.1.27-2-1-31) and the Osijek MRS III and Osijek MRS I (Table 15 Basic gas transmission system, 2.2. Measuring-reduction stations, 2.2.29).
16
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3.4. DEVELOPMENT OF NATURAL GAS CONSUMPTION SO FAR The consumption of natural gas in the Republic of Croatia does not follow the growth projections defined in the Energy Development Strategy where the average annual growth for the 2006 – 2020 period has been expected at the level of 5% (even 6% in the more optimistic scenario of the construction of gas power plants), but also shows a decrease in the previous period from 2008 to 2013. This is most clearly evident in the table below.
Table 6 Consumption of natural gas from 2008 to 2013
CONSUMPTION OF NATURAL GAS IN RH FROM 2008 TO 2013 m. unit 2008 2009 2010 2011 2012 2013 TWh 12,36 11,93 12,32 11,52 11,01 10,91 distribution consumers 10⁹m³ 1,29 1,25 1,31 1,22 1,15 1,13 direct industrial TWh 4,31 2,86 3,01 3,96 3,61 3,51 consumers 10⁹m³ 0,45 0,30 0,32 0,42 0,38 0,37 energy TWh 6,61 5,92 6,40 6,61 6,69 5,73 transformations 10⁹m³ 0,69 0,62 0,68 0,70 0,70 0,60 TWh 6,03 5,15 6,02 6,14 5,73 5,76 Petrokemija d.d., Kutina 10⁹m³ 0,63 0,54 0,64 0,65 0,60 0,60 TWh 29,31 25,86 27,75 28,22 27,04 25,91 TOTAL 10⁹m³ 3,06 2,71 2,95 2,99 2,83 2,70 Note: when converting measuring unit m3 into kWh, average conversion factors from 2008 (9,577), 2009 (9,5416), 2010 (9,4055) and 2011 (9,4397) have been used. Measured net calorific values kWh/m3 @15 °C from chromatographic gas analyses were used for 2012 and 2013.
From total consumption of 3,06 billion m3 in 2008, in 2013 the consumption achieved only 2.70 billion m3 during particular years of decreases and recoveries, meaning that the average annual decrease in that five-year period was 2,5% compared to the expected growth of 5% or even of 6% in the option of the intensive construction of gas power plants. Although the attached table presentation is somewhat differently structured (in the way of monitoring Plinacro), a shortfall in gas consumption is evident in all sectors in relation to the Energy Development Strategy.
Decrease in the consumption of distribution consumers at the average annual rate of 3% compared to the expected growth of 3% and decrease in the consumption of direct industrial consumers at the average annual rate of 4% compared to the expected growth of 1% are visible in the previous period. The consumption of energy transformation consumers has been stagnant compared to the expected growth at the average annual rate of 3% or even of 8% in the option of the intensive construction of gas power plants. The consumption of Petrokemija d.d. Kutina has also been stagnant.
From the above mentioned it is evident that there has been a significant years-long standstill in the growth of natural gas consumption or even its decrease.
17
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
3.5. DEVELOPMENT OF THE SOURCE OF NATURAL GAS SUPPLY SO FAR – DOMESTIC PRODUCTION AND IMPORT
The Republic of Croatia has a long history of research, production and consumption of natural gas and the development of that energy sector has been oriented towards its own resources and own production for many years. Import of natural gas from the Russian Federation started after 1978 and practically lasted uninterrupted by 2011 when the main Croatian supplier PRIRODNI PLIN d.o.o. (INA) signed the three-year contract with Italian ENI.
The domestic production has ensured approximately 60-70% for many years, depending on the year, and only the remaining part was related to import.
In 2013 the domestic production was realized at the level of 1,37 billion m3 (Panon – 0,65 billion m3 and Northern Adriatic/INA – 0,72 billion m3. The import was realized at the level of 1,27 billion m3 and 0,06 billion m3 was withdrawn from the storage facility.
It should be emphasized that the mentioned import was made for many years through Slovenia via the Zabok – Rogatec interconnection gas pipeline, but since 2011, by the construction of the interconnection with the Hungarian gas system on the Dravaszerdahely – Donji Miholjac route, the import has been possible from that route but the quantities imported so far are far below capacity of this gas pipeline.
Figure 2 Natural gas balance sheet for 2013
NATURAL GAS SUPPLY 2013 Natural gas supply 2013 mlrd m3
DOMESTIC PRODUCTION 1,37
Production Panon 0,65
Production Northern Adriatic 0,72
IMPORT 1,27 DOMESTIC IMPORT PRODUCTION TOTAL 2,64 4B% 52%
mlrd m3 UNDERGROUND GAS STORAGE 0,06
TOTAL MARKET 2,70
18
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4. FOUNDATIONS OF FURTHER DEVELOPMENT OF THE GAS TRANSMISSION SYSTEM
4.1. EXPECTED NEEDS OF THE NATURAL GAS DOMESTIC MARKET AND PLANNED CONSUMPTION The development of the natural gas consumption so far set forth in Chapter 3 has shown the non- realization of consumption growth and natural gas market development defined in the Energy Development Strategy. The main reason for that is the economic crisis, but also the indecisiveness of energy and political entities to direct and encourage the development of the whole energy industry and the natural gas sector.
Figure 3 Movement tendency of gross domestic product in the Republic of Croatia
Under the conditions of the constant decrease in gross domestic product (Figure 3 – graphic presentation of movement tendency of gross domestic product) which has already led to decrease in the consumption as indicated in Chapter 3.4, it is not justified to expect a fast recovery of the natural gas market. Particularly for the reason that the latest movements and projections of both gross domestic product and industrial production and standards show a further decrease.
The projection of consumption has therefore been "frozen" at the level of 2013 for the first three years of the Ten-Year Plan (from 2014 to 2016). No growth defined in the Energy Development Strategy is planned for the following seven years, but a more moderate growth which is more suitable for the expected schedule of economic recovery and for raising awareness of the need for the implementation of measures of energy efficiency and energy saving and consequently of their active implementation. 19
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
The average annual consumption growth of 2% has been planned for the period from 2017 to 2023, i.e. the period of "recovery" and natural gas consumption growth in the group of distributive consumers, being less than the estimate of consumption growth shown in the Energy Development Strategy which was 3%. The growth projection from the Energy Development Strategy of 1% was maintained with direct industrial consumers. The consumption for energy transformations has been planned in accordance with the latest official reading of HEP and the consumption of Petrokemija d.d., Kutina has been kept at the level achieved in 2013 through the whole plan period.
Table 7 Natural gas consumption projection in RH from 2014 to 2023
NATURAL GAS CONSUMPTION PROJECTION IN RH FROM 2014 TO 2023 m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 distribution TWh 10,84 10,84 10,84 11,05 11,27 11,50 11,73 11,96 12,20 12,45 consumers 10⁹m³ 1,13 1,13 1,13 1,15 1,18 1,20 1,22 1,25 1,27 1,30 direct industrial TWh 3,55 3,55 3,55 3,58 3,62 3,66 3,69 3,73 3,77 3,80 consumers 10⁹m³ 0,37 0,37 0,37 0,37 0,38 0,38 0,39 0,39 0,39 0,40 energy TWh 5,75 5,75 5,75 8,92 15,63 15,63 15,63 15,63 15,63 15,63 transformations 10⁹m³ 0,60 0,60 0,60 0,93 1,63 1,63 1,63 1,63 1,63 1,63 Petrokemija d.d., TWh 5,75 5,75 5,75 5,75 5,75 5,75 5,75 5,75 5,75 5,75 Kutina 10⁹m³ 0,60 0,60 0,60 0,60 0,60 0,60 0,60 0,60 0,60 0,60 TWh 25,89 25,89 25,89 29,35 36,25 36,54 36,83 37,11 37,40 37,59 TOTAL 10⁹m³ 2,70 2,70 2,70 3,06 3,78 3,81 3,84 3,87 3,90 3,92 Note: when converting measuring unit m3 into kWh, average conversion factors from 2013 have been used (9,590057)
20
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.2. ENSURING NATURAL GAS FOR DOMESTIC MARKET
4.2.1. Expected natural gas domestic production
The projections of natural gas production in the Republic of Croatia obtained by the Energy Institute Hrvoje Požar have been used due to non-availability of data on the future natural gas production from the producer INA d.d. and the competent ministry.
It is evident from the table below that the net production of natural gas – gas for the market of 1,417 billion m3 in 2014 will continuously decrease up to 0,601 billion m3 in 2023.
A roughly equal decrease is expected both in land and offshore production.
Table 8 Projection of natural gas production in RH from 2014 to 2023
PROJECTION OF NATURAL GAS PRODUCTION IN RH FROM 2014 TO 2023 m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TWh 6,29 5,74 5,25 4,80 4,38 4,01 3,66 3,35 3,06 2,79 PANON 10⁹m³ 0,66 0,60 0,55 0,50 0,46 0,42 0,38 0,35 0,32 0,29 TWh 8,23 7,41 6,98 6,43 5,62 5,07 4,57 4,12 3,72 3,37 JADRAN ( for Ina) 10⁹m³ 0,86 0,77 0,73 0,67 0,59 0,53 0,48 0,43 0,39 0,35 GROSS TWh 14,52 13,16 12,23 11,23 10,00 9,08 8,24 7,47 6,78 6,16 PRODUCTION 10⁹m³ 1,51 1,37 1,28 1,17 1,04 0,95 0,86 0,78 0,71 0,64 NET TWh 13,59 12,32 11,44 10,51 9,36 8,50 7,71 6,99 6,35 5,76 PRODUCTION 10⁹m³ 1,42 1,28 1,19 1,10 0,98 0,89 0,80 0,73 0,66 0,60
Note: when converting measuring unit m3 into kWh, average conversion factors from 2013 have been used (9,590057)
21
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.2.2. Expected import of natural gas Comparing the projections of natural gas consumption from Chapter 4.1 and of domestic natural gas production from Chapter 4.2.1, we have obtained the projection of the needs for import provided that all quantities of domestic natural gas will be used for the needs of the domestic market. Otherwise, these import quantities would be higher than those shown in Table 9.
Table 9. Projection of balance sheet of natural gas supply in the Republic of Croatia from 2014 to 2023
PROJECTIONS OF BALANCE SHEET OF NATURAL GAS IN RH FROM 2014 TO 2023 m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TWh 25,89 25,89 25,89 29,35 36,25 36,54 36,83 37,11 37,40 37,59 NATURAL GAS CONSUMPTION 10⁹m³ 2,70 2,70 2,70 3,06 3,78 3,81 3,84 3,87 3,90 3,92 DOMESTIC TWh 13,59 12,32 11,44 10,51 9,36 8,50 7,71 6,99 6,35 5,76 PRODUCTION 10⁹m³ 1,42 1,28 1,19 1,10 0,98 0,89 0,80 0,73 0,66 0,60 TWh 12,30 13,57 14,45 18,84 26,89 28,04 29,12 30,12 31,05 31,83 IMPORT 10⁹m³ 1,28 1,42 1,51 1,96 2,80 2,92 3,04 3,14 3,24 3,32 Note: when converting measuring unit m3 into kWh, average conversion factors from 2013 have been used (9,590057)
It is evident that 1,413 billion m3 should be imported for the market needs already in 2014 and even 3,359 billion m3 at the end of this ten-year plan period, i.e. in 2023. Significant quantities are concerned and direct supply routes and first of all transmission capacities should be ensured for their supply.
4.2.3. Existing and new supply routes Due to the expected natural gas consumption growth and the decrease in the domestic production, it should be assumed that there will be the need for gas import. As already said, the needs of the Republic of Croatia for import have been so far met by the import of Russian gas from Gazprom (Gazexport) and by the import from Italian ENI and of smaller quantities from some other suppliers in the last three years.
The Republic of Croatia will be almost in the same situation in the future as the most part of Europe whose import-oriented natural gas market showed an extraordinary growth during a number of years and a stagnation and even a decrease in the last two years. The natural gas production in Europe has faced a constant decrease and only the latest orientation towards its own existing potentials from non-conventional sources offers certain possibilities of reducing its dependence on imports. Another fact is that the largest quantities of gas for the European market are imported from the Russian Federation and that Europe depends on that gas to a large extent, this particularly referring to the countries of our South European milieu.
22
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Such a large dependence that has already shown its adverse effects on one hand and the fact that the Caspian and East European production potentials have exceeded the Russian on the other hand, with the expected recovery of the European natural gas market have directed Europe towards some new sources and supply projects. A significant part of these projects is planned and prepared in our milieu and also in the territory of the Republic of Croatia. As already mentioned, the projects such as Nabucco, South Stream, TAP+IAP, LNG are first of all concerned (Figure 4).
Figure 4 New supply projects – regional and transregional connecting
The newly built gas transmission system is ready for connecting to the mentioned supply projects. The gas pipeline link, the interconnection of the Croatian and Hungarian system of Slobodnica-Donji Miholjac-Dravaszerdahely-Varosföld has been inter alia built for the purpose of its connecting to the Nabucco and the South Stream gas pipelines although a direct option is possible for involvement in this another project. The involvement in the TAP (Trans Adriatic Pipeline) project via the IAP (Ionian Adriatic Pipeline) project, which has been developed into a main project of the Energy Community of South East Europe, has offered the possibilities of supplying the natural gas for the Republic of Croatia and the neighbouring countries from Caspian and Middle Eastern sources and the increase in efficiency of our gas system.
23
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
However, the LNG terminal that will be built in Omišalj on the island of Krk, is our largest regional and transregional potential. Due to its strategic position, i.e. prominent penetration of the Adriatic Sea into the European land, it offers large supply possibilities for the countries in a wider milieu.
By establishing the BALTIC – ADRIATIC pipeline link which would have its bases in LNG terminals in Poland and Croatia, this project would be developed from a regional into a transregional project and would offer even wider development possibilities. The scope of this project exceeds the V4+ group of countries (Poland, Slovakia, Czech Republic, Hungary and Croatia) which have initiated it, as some other countries from a wider milieu have shown their interest in it (Ukraine and Romania).
The existing gas system of the Republic of Croatia is ready to be integrated in all mentioned supply projects (Map 3). However, it should be emphasized that its further development will be fully determined by the scope and the schedule of the implementation just of these projects.
24
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Map 3 Integration of the gas transmission system of RH in new supply projects
25
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.3. EXPECTED TRANSMISSION OF NATURAL GAS FOR THE NEEDS OF THE GAS MARKET IN THE NEIGHBORHOOD OF REPUBLIC OF CROATIA
Taking into account the possibilities of transmitting the natural gas for the needs of the market in the neighbourhood of Croatia, we will focus on two supply routes – projects, i.e. the LNG and the IAP. The largest possibilities are certainly offered for natural gas transmission from the future LNG terminal on the island of Krk. According to the current plans and knowledge, capacity of this LNG terminal should be 4-6 billion m3/yearly and the commencement of its operation is planned in 2018.
Main routes for shipment of LNG and its transmission to neighbouring countries are:
Omišalj-Zlobin-Bosiljevo-Karlovac-Lučko-Zabok-Rogatec (SLOVENIA) Omišalj-Zlobin-Bosiljevo-Sisak-Kozarac-Slobodnica-Donji Miholjac-Dravaszerdahely (HUNGARY) including a possible branch for SERBIA Slobodnica-Sotin-Bačko Novo Selo Omišalj-Zlobin-Rupa-Kalce (SLOVENIA)
Of course, there is also a possibility of transmission to BOSNIA AND HERZEGOVINA on several future interconnections and also to MONTENEGRO via the IAP pipeline system. In case of a significant increase in capacity of the LNG terminal in Omišalj, shipment of gas via the potential interconnection with ITALY on the Omišalj-Casal Borsetti route is possible.
The commencement of transit for neighbouring countries at the level of 0,5 billion m3 in 2018 is planned and it would be continuously increased up to 4 billion m3 in 2023.
The commencement of the natural gas transmission via the IPA system is planned in 2020 at the level of 0,5 billion m3 and it would achieve 1 billion m3 in 2023. The whole transmission projection for the neighbouring countries can be seen in Table 10.
The transmission of gas for neighbouring countries supplied via the IAP will be realized on the Dobreč (MONTENEGRO)-Prevlaka-Dubrovnik-Ploče-Split-Bosiljevo route and further via the previously mentioned LNG shipment routes.
All this provides numerous options of gas transmission for neighbouring countries, particularly as a number of new interconnections – links with neighbouring countries has been planned in this plan in addition to the existing ones. The so formed system with numerous interconnections also provides the gas transmission for neighbouring countries and from other sources, except for the LNG and the IAP, but the mentioned sources and routes are key sources and routes.
26
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Table 10 Projection of transmission of natural gas for neighbouring countries from 2014 to 2023
PROJECTION OF TRANSMISSION FOR NEIGHBOURING COUNTRIES FROM 2014 TO 2023 m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TWh 4,80 14,39 28,77 28,77 38,36 38,36 LNG 10⁹m³ 0,50 1,50 3,00 3,00 4,00 4,00 TWh 4,80 4,80 9,59 9,59 IAP 10⁹m³ 0,50 0,50 1,00 1,00 TWh 4,80 14,39 33,57 33,57 47,95 47,95 TOTAL 10⁹m³ 0,00 0,00 0,00 0,00 0,50 1,50 3,50 3,50 5,00 5,00 Note: when converting measuring unit m3 into kWh, average conversion factors from 2013 have been used (9,590057)
27
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.4. EXPECTED TRANSMISSION OF NATURAL GAS FOR THE NEEDS OF STORAGE The overview of totally transported quantities for the previous five-year period from 2008 to 2013 has been taken into account when estimating the expected natural gas transmission for the storage needs in the underground gas storage facilities (in the existing underground gas storage in Okoli and in the future underground gas storage in Grubišno polje) (Table 11)
Table 11 Transmission of natural gas for domestic needs from 2008 to 2013
TRANSMISSION OF NATURAL GAS FOR DOMESTIC NEEDS FROM 2008 TO 2013 m. unit 2008 2009 2010 2011 2012 2013 TWh 12,36 11,93 12,32 11,52 11,01 10,91 distribution consumers 10⁹m³ 1,29 1,25 1,31 1,22 1,15 1,13 TWh 4,31 2,86 3,01 3,96 3,61 3,51 direct industrial consumers 10⁹m³ 0,45 0,30 0,32 0,42 0,38 0,37 energy TWh 6,61 5,92 6,40 6,61 6,69 5,73 transformations 10⁹m³ 0,69 0,62 0,68 0,70 0,70 0,60 TWh 6,03 5,15 6,02 6,14 5,73 5,76 Petrokemija d.d., Kutina 10⁹m³ 0,63 0,54 0,64 0,65 0,60 0,60 TWh 3,74 3,53 4,04 3,02 4,25 2,81 Okoli UGS- injection 10⁹m³ 0,39 0,37 0,43 0,32 0,44 0,30 TWh 33,04 29,39 31,79 31,25 31,29 28,72 TOTAL 10⁹m³ 3,45 3,08 3,38 3,31 3,27 3,00 Note: when converting measuring unit m3 into kWh, average conversion factors from 2008 have been used (9,577), 2009 (9,5416), 2010 (9,4055), 2011 (9,4397). Measured net calorific values kWh/m3 @15 °C from chromatographic gas analyses have been used for 2012 and 2013.
The needs for storage are connected with the consumption of natural gas, but also with certain user's commercial activities. Taking into account the fact that the gas consumption has been "frozen" at the level of 2013 in the ten-year consumption projection for the period from 2014 to 2016, gas transmission for the needs of storage (injection) for the mentioned period is planned in the amount which is equal to the realization in 2013 (0,30 billion m3).
For the further period from 2017 to 2023 such a quantity has been increased proportionally to the consumption growth, particularly of distributive consumers, and after 2018, when the end of the construction of the new underground storage in Grubišno polje is expected, it will be in operation by additional 0,05 billion m3/year. Neighbouring countries will be also able to use a part of storage capacities or a part of transmission for the purpose of storage (commissioning of a new interconnection with the Slovenian gas transmission system is planned in 2018).
The projection of natural gas transmission for the purpose of storage is shown in Table 12.
28
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Table 12 Projection of natural gas transmission for the purpose of storage
PROJECTION OF TRANSMISSION FOR THE PURPOSE OF STORAGE FROM 2014 TO 2023
m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TWh 2,88 2,88 2,88 2,97 3,07 3,26 3,64 4,03 4,41 4,80 TOTAL 10⁹m³ 0,30 0,30 0,30 0,31 0,32 0,34 0,38 0,42 0,46 0,50 Note: when converting measuring unit m3 into kWh, average conversion factors from 2013 have been used (9,590057)
29
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.5. TOTAL EXPECTED TRANSMISSION THROUGH THE GAS TRANSMISSION SYSTEM The projection of total transmission through our transmission system has been obtained by adding up three special-purpose transmission groups:
1. NATURAL GAS TRANSMISSION FOR THE PURPOSE OF DOMESTIC CONSUMPTION 2. NATURAL GAS TRANSMISSION FOR THE PURPOSE OF STORAGE (the majority for the domestic market and a smaller part for the neighborhood) 3. NATURAL GAS TRANSMISSION FOR NEIGHBOURING COUNTRIES
Table 13 Projection of total natural gas transmission
PROJECTIONS OF TRANSMISSION THROUGH THE GAS SYSTEM IN RH FROM 2014 TO 2023 1. NATURAL GAS CONSUMPTION m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 distribution TWh 10,84 10,84 10,84 11,05 11,27 11,50 11,73 11,96 12,20 12,45 consumers 10⁹m³ 1,13 1,13 1,13 1,15 1,18 1,20 1,22 1,25 1,27 1,30 direct TWh 3,55 3,55 3,55 3,58 3,62 3,66 3,69 3,73 3,77 3,80 industrial consumers 10⁹m³ 0,37 0,37 0,37 0,37 0,38 0,38 0,39 0,39 0,39 0,40 energy TWh 5,75 5,75 5,75 8,92 15,63 15,63 15,63 15,63 15,63 15,63 transformations 10⁹m³ 0,60 0,60 0,60 0,93 1,63 1,63 1,63 1,63 1,63 1,63 Petrokemija TWh 5,75 5,75 5,75 5,75 5,75 5,75 5,75 5,75 5,75 5,75 d.d., Kutina 10⁹m³ 0,60 0,60 0,60 0,60 0,60 0,60 0,60 0,60 0,60 0,60 TWh 25,89 25,89 25,89 29,35 36,25 36,54 36,83 37,11 37,40 37,59 TOTAL (1) 10⁹m³ 2,70 2,70 2,70 3,06 3,78 3,81 3,84 3,87 3,90 3,92
2. TRANSMISSION FOR THE PURPOSE OF STORAGE m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TWh 2,88 2,88 2,88 2,97 3,07 3,26 3,64 4,03 4,41 4,80 TOTAL (2) 10⁹m³ 0,30 0,30 0,30 0,31 0,32 0,34 0,38 0,42 0,46 0,50
3. TRANSMISSION FOR NEIGHBOURING COUNTRIES m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TWh 4,80 14,39 28,77 28,77 38,36 38,36 LNG 10⁹m³ 0,50 1,50 3,00 3,00 4,00 4,00 TWh 4,80 4,80 9,59 9,59 IAP 10⁹m³ 0,50 0,50 1,00 1,00 TWh 4,80 14,39 33,57 33,57 47,95 47,95 TOTAL (3) 10⁹m³ 0,00 0,00 0,00 0,00 0,50 1,50 3,50 3,50 5,00 5,00 TRANSMISSION VIA THE SYSTEM (1+2+3) m. unit 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 OVERALL(1+2+ TWh 28,77 28,77 28,77 32,32 44,11 54,18 74,04 74,71 89,76 90,34 3) 10⁹m³ 3,00 3,00 3,00 3,37 4,60 5,65 7,72 7,79 9,36 9,42 Note: when converting measuring unit m3 into kWh, average conversion factors from 2013 have been used (9,590057) 30
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
It can be seen from the table that an extremely significant growth of the natural gas transmission is possible in the plan period from 2014 to 2023. The natural gas transmission could be increased from 3,00 billion m3 in 2014 to almost triple i.e. 9,42 billion m3 in 2023, having significant economic effects and requiring significant investments in new parts of the gas transmission system.
31
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.6. ENSURING THE PRECONDITIONS OF SECURITY OF RELIABLE NATURAL GAS SUPPLY AND FULFILLING THE REQUIREMENTS OF THE REGULATION (EU) NO. 994/2010 CONCERNING MEASURES TO SAFEGUARD SECURITY OF GAS SUPPLY
The Regulation (EU) No. 994/2010 concerning measures to safeguard security of gas supply regulates the transmission system operator's obligation in relation to providing a constant two way capacity on all cross border connections among the European Union member states and adjusting functioning of the transmission system in order to partially or fully enable the physical gas flow in both directions.
The gas transmission system of the Republic of Croatia is connected to the gas transmission system of the Republic of Slovenia through the one way interstate connecting pipeline (the one way interconnection through the Rogatec EMS) and to the gas transmission system of the Republic of Hungary through the two way interstate connecting pipeline (the two way interconnection through the Dravaszerdahely EMS).
The N-1 formula from the previously mentioned Regulation describes the infrastructure technical capacity for satisfying the whole gas demand in the calculation area in case of disorder in the unique infrastructure on the day of extremely high demand for gas which statistically occurs once in 20 years. The security of gas supply according to this criterion has been satisfied in case N-1 ≥ 1 or N-1 ≥ 100%.
푬푷풎+푷풎+푺풎−푰풎 N-1 (%) = x 100 푫풎풂풙 where:
Dmax – total daily demand for gas on the day of an extremely high demand for gas (statistically 1 in 20) EPm – technical capacity of points at entry of the limit entry points Pm – maximum technical capacity of production Sm – maximum exit capacity of storage facility Im – technical capacity of the largest gas infrastructure with maximum capacity for supplying the calculation area
The situation in 2013 was as follows:
EPm Rogatec 5,04 mil.m³/d Dravaszerdahely 7,20 mil.m³/d
Pm Domestic production 3,75 mil.m³/d
Sm UGS (max. during winter) 5,76 mil.m³/d
Im Dravaszerdahely 7,20 mil.m³/d
Dmax 16,32 mil.m³/d 32
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
5,04+7,20+3,75+5,76−7,20 N-1 (%) = x 100 16,32
N-1 (%) = 89% According to the above mentioned it is visible that the transmission system did not meet such a criterion in 2013. The status will be deteriorated in the following years due to the decrease in domestic production.
In order to ensure the conditions of the infrastructural standard (N-1) and the standard of the security of supply in the future and to provide the two way gas flow at entry into the transmission system from the Republic of Slovenia through the Rogatec EMS, the construction of the Rogatec – Zabok DN 700/75 bar interconnection (Table 16 Interconnections, 3. Gas pipelines, 3.1.8. Rogatec – Zabok) and the Lučko – Zabok DN 700/75 bar gas pipeline (Table 15 Basic gas transmission system, 2.1. Pipelines, 2.1.19. Lučko – Zabok) is planned.
The ten-year development plan of the transmission system also provides the construction of two compressor stations (Table 15 Basic National System, 2.5.1. CS 1 and 2.5.2. CS 2) by which a higher efficiency of the transmission system would be achieved and the physical two way increased gas flow at interconnections to the transmission system of neighboring countries would be provided. The possibility of full satisfying the criterion of the "entry-exit" model of booking of entry and exit capacities independently on the position on the transmission system would be also ensured by the construction of compressor plants in the transmission system. The mentioned investment is in the phase of preparation of the "Study of the Needs for Compressing in the Transmission System of the Republic of Croatia and Conceptual Design for a Possible Compressor Station" which is aimed at determining optimum locations for the construction of compressor stations in the gas transmission system in the Republic of Croatia.
The capacities at both entries will be essentially increased by the construction of the mentioned facilities which should be under operation in 2019 and the following will be achieved:
EPm Rogatec 18,74 mil.m³/d (new gas pipeline + compressor station) Dravaszerdahely 19,20 mil.m³/d (compressor station)
Pm Domestic production 2,44 mil.m³/d
Sm UGS (max. during winter)) 5,76 mil.m³/d
Im Dravaszerdahely 19,20 mil.m³/d
Dmax 16,32 mil.m³/d
18,74+19,20+2,44+5,76−19,20 N-1 (%) = x 100 16,32 N-1= 165 %
33
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
In other words, satisfying the N-1 criterion and supply reliability are ensured on a long-term basis by the construction of the mentioned facilities, all the more so as the construction of a new storage facility and opening of new supply routes (the IAP and LNG) are planned.
Paragraph 7 of Article 6 of the Regulation (EU) No. 994/2010 regulates that the competent authority of the Republic of Croatia ensures the market investigation and the evaluation whether the market requires the construction of the mentioned investments for the purpose of fulfilling the transmission system operator's prescribed obligations.
34
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.7. ENSURING THE PRECONDITIONS OF DEVELOPMENT OF THE NATURAL GAS MARKET
The transmission system operator ensures the technical and technological infrastructure for natural gas transmission in the Republic of Croatia and the information platform for collection, storage and exchange of data necessary for implementing the prescribed activities among the natural gas market participants. For this purpose, the information system for commercial capacity management has been worked out and introduced for records and continuous exchange of data with the gas market entities, for daily processing and storage of all data required for performing the service of gas transmission and the gas transmission system balancing (Table 15 Basic gas transmission system, 2.6. Information system for capacity management (the SUKAP system).
The information system is a necessary support for performing the service of gas transmission, the gas transmission system balancing and a continuous exchange and intensive daily and monthly data processing, the preparation of reports and the calculation of the compensations for the use of the transmission system. The system has been introduced and developed in accordance with the requirements of the legal regulation. It is organized modularly in the way that each module supports particular business process and its activities such as booking of capacities of the transmission system, nominations of using the transmission system, collection and processing of data on measured and distributed quantities of gas, data reporting and publishing, the transmission system balancing and the change of capacity booking because of the change of the end customers' supplier.
4.7.1. Ensuring the requirements for transparency-availability of information to users The requirements for transparency for the transmission system operators are prescribed in Article 18 of the Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 September 2009 on conditions for access to the natural gas transmission networks, Annex to the Regulation No. 685/2010 and Annex to the Regulation No. 347/2013.
Plinacro, as the Croatian transmission system operator and subject to the Regulation No. 715/2009, publishes information about the services it offers and about relevant valid conditions together with the technical information required for existing and future users of the gas transmission system. In accordance with the Regulation No. 715/2009 and Annexes to the Regulation, the mentioned data will be publicly published. Data transparency is ensured from the information system for commercial capacity management.
Certain funds for the further development and the construction of IT system are planned by the Ten- Year Plan (Table 15 Basic gas transmission system, 2.6. Information system for capacity management (the SUKAP system).
35
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.7.2. Balancing in transmission system on the market bases
In order to ensure the required conditions for a safe, reliable and quality gas transmission to all users of the transmission system, it is necessary to maintain the transmission system on a continuous basis under the normal plant conditions and within the permitted unbalance limits.
According to the provisions of the valid general acts by which the rules of organization in the gas market in the Republic of Croatia are defined, the balance group leader is obliged to balance gas quantities on a daily basis, which enter into and exit from the transmission system for the balance group it organizes and leads.
Based on data on nominated quantities of gas at entries into and exits from the system and data on the forecasted gas consumption, Plinacro analyzes movement of the status of accumulation in the transmission system on a daily basis. On the basis of the obtained results, Plinacro takes the additional balancing measures.
Balancing in the transmission system is achieved by managing accumulation of pipelines, using the balancing energy and decreasing or suspending takeover/delivery of natural gas to individual users of the transmission system according to the sequence submitted in advance by each balance group leader for the balance group it organizes and leads.
In order to provide the users of the transmission system with the timely corrective actions, the transmission system operator enables the sufficient, timely and reliable information about the balancing status through data from the information system for capacity management (the SUKAP system) (Table 15 Basic gas transmission system, 2.6. the SUKAP system).
In accordance with the provisions of the Gas Market Act („Official Gazette“ number 28/2013., 14/2014.), the transmission system operator is obliged to procure and storage gas for the needs of operative stocks and use them to ensure optimum conducting of the transmission system.
4.7.3. Congestion management in the transmission system
The principles of the mechanism for the distribution of capacities and the procedures of congestion management for transmission system operators are regulated in article 16 of the Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 September 2009 on conditions for access to the natural gas transmission network, Annex to the Regulation No. 685/2010, Annex to the Regulation No. 490/2012 and Annex to the Regulation No. 347/2013.
Plinacro, as the transmission system operator is obliged to implement and publish non-discriminatory and transparent congestion-management procedures which facilitate cross border exchanges in natural gas on a non-discriminatory basis.
36
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Financial costs of creating an adequate modular information system for supporting congestion management in the transmission system are included in chapter 2.6. the SUKAP system (the Information system for capacity management) shown in Table 15 Basic gas transmission system
There have been no physical congestions until now in the gas transmission system of the Republic of Croatia, but in order to prevent them in the future, a further development of the gas transmission system is planned through the interconnection of Rogatec – Zabok DN 700/75 bar and the Lučko – Zabok DN 700/75 bar pipeline and the construction of a compressor station at the entry into the transmission system from Hungary through the Dravaszerdahely EMS.
37
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.8. TECHNICAL AND OPERATIVE COMPLIANCE WITH OTHER TRANSMISSION SYSTEM OPERATORS
The prerequisites for the technical and operative compliance with the upstream transmission system operator are ensured on the interconnection with Hungary in the adequate Interconnection Agreement concluded in 2011. The Agreement defines all rules and procedures associated with the use of transmission system capacities. The need for IT system upgrade is expected in the next period. This upgrade will enable the data exchange in prescribed format, capacity allocations, joint capacity offer and procedures of automatic adjustment of nominations.
In addition to the above mentioned, the Ten-Year Plan provides the construction of a compressor station which will increase technical capacity and enable gas flow from the Republic of Croatia to the Republic of Hungary.
The interconnection agreement will be signed on the interconnection with the Republic of Slovenia up to the beginning of the gas year 2014/2015, by which the technical compliance and operative procedures will be defined. Certain investments in IT system and chromatograph at the interconnection with the Republic of Slovenia are necessary in the coming period (the costs are shown in Table 15 Basic gas transmission system, 2.7. Measuring system).
As the comprehensive connecting of the Croatian gas transmission system to the gas transmission systems of all neighbouring countries is planned in the future, what is visible from this plan, some considerable activities are expected in this field.
It has to be emphasized that an intensive cooperation with the transmission system operators of these countries already exists in the preliminary phase of interconnection projects (Slovenian Plinovodi, Hungarian FGZS, Srbijagas from Serbia and BH-Gas from Bosnia and Herzegovina).
38
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
4.9. TRANSMISSION SYSTEM RECONSTRUCTIONS
In order that the transmission system operator could be in a position to perform its primary activity in a safe and reliable way in accordance with the system users’ requirements, in the next period it is necessary to carry out a number of reconstructions on the technological facilities of the transmission system (gas pipelines, gas nodes, measuring-reduction stations).
The Ten-Year Plan provides a series of reconstructions of gas pipelines or particular gas pipeline routes and the relocations of certain gas pipeline routes due to increased safety and reliability regarding the transmission and the delivery of gas to the transmission system users. Such interventions on the transmission system are necessary because of the age of particular gas pipelines (40 years or more), the condition of pipes of particular gas pipelines which are seriously affected by corrosion (defective insulation and bad cathodic protection) and for preventive reasons in order to avoid a great probability of gas leakage in the coming years.
Reconstructions/replacements of particular measuring-reduction stations are also foreseen. They are necessary for reasons of technology obsolescence and the impossibility of reconstructing the existing conditions and by such reconstructions/replacements Plinacro would ensure a reliable delivery of gas to users. Legal and property-rights issues connected with these facilities would be also solved by the reconstructions/replacements of the mentioned measuring-reduction stations.
The reconstructions of the mentioned gas nodes would enable optimum connection of 50 bar and 75 bar gas transmission systems and the prerequisites of a safe and reliable natural gas supply would be ensured by these interventions. They are precisely those interventions that would considerably lift the entire flexibility of system management, enabling the creation of more favourable hydraulic conditions in the system for the new planned consumers.
The Ten-Year Plan also provides the abandonment of particular technological facilities which are out of function in the aim of simplifying and rationalizing the transmission system, reducing operations and maintenance costs as well as raising supply security and reliability.
39
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
5. DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM When elaborating and considering the development plan of the gas transmission system in the Republic of Croatia, for this ten-year period from 2014 to 2023, you should take into consideration the fact that within this plan activities will be developed on particular number of facilities which have been already planned by the Plan for the development, construction and modernization of the gas transmission system in the Republic of Croatia for 2002-2011.
The fact is, that due to particular circumstances, not all the planned facilities have been built within the planned deadlines of this large development and investment cycle. This group of facilities is called INVESTMENT PROJECTS because they are completely defined from both technical and investment point of view.
The following group of projects are DEVELOPMENT PROJECTS which represent the base of this planning document and the development of the gas transmission system for the planning period from 2014 to 2023 is formed and planned by these projects.
Within the group of development projects, the projects are worked out in the following groups such as BASIC GAS TRANSMISSION SYSTEM, INTERCONNECTIONS and OTHER PROJECTS which partly do not represent the projects of the gas transmission system of the Republic of Croatia, but they are unquestionably connected with them.
5.1. INVESTMENT PROJECTS
As previously said, this group contains the projects planned by the Plan for the development, construction and modernization of the gas transmission system in the Republic of Croatia for 2002- 2011, whose construction and completion has been beyond the originally planned deadlines and entered into the planning and operational period of this plan.
The attached technical presentation shows that not a large number of facilities is concerned. In the first group of facilities A/the Pula-Karlovac gas pipeline system only the Omišalj measuring-reduction station (MRS) has remained, which was not built earlier due to giving up from the construction of the Kukuljnovo-Omišalj gas pipeline or because of the orientation towards the construction of the Omišalj – Zlobin gas pipeline, by which the gas shipment from the future LNG terminal in Omišalj will be also solved. All planned facilities of the project group B/the Pipeline system of Lika and Dalmatia have been built. In the project group C/the Pipeline system of Central and Eastern Croatia only the completion of the Kutina – Dobrovac gas pipeline, the completion of gas nodes and operational facilities and the construction of several replacement measuring-reduction stations have remained.
40
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
41
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM Table 14. Presentation of investment projects A / PULA – KARLOVAC GAS PIPELINE SYSTEM
Operating Year of Ord. Reason of Year of PROJECT NAME capacitym3/h pressure const.comm commi- NOTE no. construction (bar) encement ssioning 1 MRS 1.1. Omišalj 50.000 100/75 supply security 2018. Integral part of the project of Omišalj – Zlobin gas pipeline
B / GAS PIPELINE SYSTEM OF LIKA AND DALMATIA
Nominal diameter F Length of Operating Ord. PROJECT NAME pipeline L pressure NOTE no. (mm) ( " ) (km) (bar)
1. MAIN GAS PIPELINES+ MRS * COMPLETED AND READY FOR OPERATION OR ALREADY IN OPERATION
C / GAS PIPELINE SYSTEM OF CENTRAL AND EASTERN CROATIA – RECONSTRUCTIONS & NEW FACILITIES IN THE EXISTING SYSTEM
Nominal diameter F Length of Operating Year of Year of Reason of Ord. no. PROJECT NAME pipeline L pressure const.comme commi- NOTE construction (mm) ( " ) (km) (bar) ncement ssioning 1. GAS PIPELINES By the construction of gas pipelines the larger part of the system from the City of Kutina to Lipik will be replaced due to worn out condition of the old system (the existing system is also the first gas pipeline built in the Republic of technical justifiability Croatia). Transmission capacity, security, reliability and natural gas supply volume of the Sisak-Moslavina County and 1.1. Kutina - Dobrovac 200 8 31,6 50 2013 2014 supply security the Požega-Slavonia County will be increased by the new gas pipeline from Kutina to Dobrovac (commissioning is expected in 2014).
2. GAS NODES 2.1. Ivanja Reka MRN (reconstruction) 2018 2018 Gas nodes reconstructions are planned for the purpose of optimized connecting and use of 50-bar and 75-bar gas transmission systems and are planned to ensure the prerequisites for safe and reliable supplying of Zagreb with 2.2. Zagreb East MRN technical justifiability 2016 2017 natural gas. The reconstruction of the Kozarac measuring-reduction node is necessary for the safe supplying of the supply security City of Sisak and the gas power plant (commissioning is expected in 2014 and 2015). 2.3. Kozarac MRN (reconstruction) 2014 2014
3. MEASURING-REDUCTION STATIONS capacity m 3/h 3.1. Zagreb East II 2x 4000 2016. 2016.
3.2. Senkovec 2 x 4000 2014. 2014.
3.3. Gradec 2 x 4000 2016. 2016. 3.4. Dugo Selo II 2 x 4000 2015. 2016.
3.5. Križ 2 x 4000 2014. 2014. 3.6. Budrovac 2 x 4000 2016. 2016. The replacement of existing MRSs with typical MRSs due to worn-out conditions, obsolete technology and supply security (commissioning is expected from 2014 to 2016). 3.7. Donji Andrijevci 2 x 4000 technical justifiability 2016. 2016. 3.8. Slavonski Brod 2 x 4000 2016. 2016. 3.9. Magadenovac 2 x 4000 2016. 2016. 3.10. Koška 2 x 4000 2016. 2016. 3.11. Marjanci 2 x 4000 2016. 2016. 3.12. Dubrovčak 2 x 4000 2016. 2016. 3.13. Kutina II 3 x 4000 2016. 2016. 4. OPERATIONAL FACILITIES 4.1. Rijeka 2014. 2014.
4.2. Kutina 2013. 2014. 4.3. Čakovec 2013. 2013. The construction of operational facilities is necessary due to exceptionally increased lot coverage and geographical technical justifiability propagation of the gas transmission system in two last investment cycles and due to the reduction of operational 4.4. Benkovac 2013. 2014. maintenance costs (the completion of the construction is expected from 2013 to 2014) 4.5. Split 2013. 2014. 4.6. Ogulin 2013. 2014.
42
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
43
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
44
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
45
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
5.2. DEVELOPMENT PROJECTS
The development projects are planned and elaborated in three project groups: BASIC GAS TRANSMISSION SYSTEM, INTERCONNECTIONS and OTHER PROJECTS. It is clear that the gas transmission system is unique and indivisible, but the unbundling of interconnections is understandable because they represent the links with the systems of neighbouring countries and have a special energetic-strategic, technological-technical and economic-financial weight.
5.2.1. Basic gas transmission system
By the implementation of the already mentioned Plan for the development, construction and modernization of the gas transmission system in the Republic of Croatia for 2002-2011, which entered into its final stage, a high level of coverage of the territory of the Republic of Croatia by a modern and reliable gas transmission system of sufficient capacities for both the Croatian market and the market of neighbouring countries has been achieved. As it has been considered in the previous chapters, some parts of the system which are technically worn out have to be reconstructed and some parts have to be extended due to insufficient capacities. Some new parts of the system have to be built for the purpose of increasing the efficiency of use of the system. The best examples for that are compressor stations, by which the system efficiency and reliability will be considerably increased by rising pressure in the system.
There is unquestionably enough space for the improvement and the extension of the existing transmission system, but both its future development and the development of natural gas market in the Republic of Croatia depend first of all on the new supply projects. However, the markets of neighbouring countries depend also on the new supply projects and the strategic position of the Republic of Croatia in relation to some of those projects, first of all the LNG project in Omišalj and the Ionian Adriatic Pipeline (IAP), opens the possibilities of significant transit through our gas transmission system and is of essential importance for its further development.
The options of shipping natural gas from the future LNG terminal in Omišalj have guided the development of a considerable part of the future gas transmission system. The initial shipping gas pipeline for the Omišalj-Zlobin LNG would continue via the new Zlobin-Bosiljevo gas pipeline and onwards, in the eastern option via the Bosiljevo-Sisak-Kozarac-Slobodnica gas pipeline system, where it would be connected to the existing gas pipeline Slobodnica-Donji Miholjac - the Hungarian gas transmission system. LNG would be transported through this route to Hungary, Slovakia, Romania and Ukraine (the Baltic-Adriatic system), but also to Serbia. In the central and north option of shipping LNG, the new gas pipeline system Bosiljevo-Karlovac-Lučko-Zabok-Rogatec (Slovenia) would be built (in phases) from Bosiljevo, enabling gas to be supplied in addition to the domestic market also to the Slovenian and Austrian markets, but also to their surrounding markets. The additional significance, it is better to say the main and key significance of the part of this Lučko-Zabok-Rogatec subsystem lies in better integration of the Republic of Croatia in European natural gas flows and in natural gas reliability.
46
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Of course, in addition to this function of transporting, both LNG subsystems ensure also the possibility of the transmission and transit of Caspian gas from the IAP through the TAP from Bosiljevo onwards. The existing system would be used for the transmission from Split to Bosiljevo and the new gas pipeline system Dobreč (Montenegro)-Prevlaka-Dubrovnik-Ploče-Split would be used from the Montenegro border to Split.
As the third option of shipping LNG, the pipeline towards Slovenia, Zlobin-Rupa-Kalce is planned primarily for both the Italian and Slovenian market. This route could be also used for gas transmission and transit from the IAP. Of course, the order and the schedule of the construction of these shipping and transit routes depend on the market. This is determined by the Ten-Year Plan in accordance with the preliminary researches and knowledge or the preliminary declarations of potential users.
In addition to these gas pipelines which are particularly connected with the LNG and IAP projects, the construction of the Slobodnica-Sotin gas pipeline has been also planned which would be a continuation of the interconnection with the Serbian Sotin-Bačko Novo Selo gas system. However, the final decision on participation or non-participation of the Republic of Croatia or Plinacro in the SOUTH STREAM PROJECT will have a key impact on their construction.
The main features of the basic gas transmission system projects which are not individually mentioned in the previous consideration are given in the enclosed table presentation.
47
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
48
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM Table 15. Basic gas transmission system Opera- ting Year of Nominal diameter F Length of Reason of construction Year of pressure construction Ord.no. PROJECT NAME pipeline L commiss- NOTE bar commence- (km) ioning (mm) ( " ) ment
2.1. GAS PIPELINES
The gas pipeline will make an integral part of the Ionic-Adriatic pipeline (IAP) and makes possible the further gasification of the Republic of Croatia. The construction would also enable connecting to the gas system of Bosnia and Herzegovina on the Zagvozd – Imotski – Posušje 2.1.1. Split - Zagvozd 800 32 52 75 2017. 2018. route (commissioning is expected in 2018). The project realization is associated with the IAP realization and/or depending on the contract with capacity increase BH Gas. supply security 2.1.2. Zagvozd - Ploče 800 32 50 75 2017. 2019. The gas pipeline will make an integral part of the Ionic-Adriatic pipeline (IAP) and makes possible the further gasification of the Republic of Croatia (commissioning is expected in 2020). The project realization is associated with the IAP realization. 2.1.3. Ploče - Dubrovnik 800 32 103 75 2018. 2020.
2.1.4. Osijek - Vukovar 800 32 30 75 capacity increase 2021. 2023. The increase in the security of gas supply in the territory of whole Eastern Slavonia (commissioning is expected in 2023) supply security The increase in the security of gas supply of the City of Osijek and making the prerequisites for the construction of the new block of the Osijek 2.1.5. Donji Miholjac - Belišće 400 16 20 50 2016. 2016. combined heat and power plant (commissioning is expected in 2016)
technical justifiability The replacement of the worn-out and problematic gas pipeline and the opening of the possibility of supplying gas from the LNG terminal to 2.1.6. Kozarac - Sisak 1000 40 20 100 2018. 2019. capacity increase Hungary (commissioning is expected in 2017)
2.1.7. Lička Jesenica - Rakovica 400/500 16 20 75/50 supply security 2022. 2023. Connecting to the gas system of B&H on the Rakovica – Bihać route (commissioning is expected in 2023)
2.1.8. Kneginec - Varaždin II 300 12 25 50 technical justifiability 2018. 2018.
2.1.9. Omanovac - Daruvar 200 8 16 50 technical justifiability 2017. 2018. Optimization and raising of security of the existing 50-bar system (commissioning is expected from 2018 to 2022) 2.1.10. Lepoglava - Krapina (Đurmanec) 250 10 18 50 technical justifiability 2019. 2020.
2.1.11. Slatina - Velimirovac 200 8 47 50 technical justifiability 2020. 2022.
2.1.12. Zadvaj - Brela 300 12 15 75 gasification 2017. 2018. Gasification of Makarska Riviera (commissioning is expected in 2018) connected with the realization of the Split – Zagvozd project.
Shipping gas from the LNG terminal, supplying the plant with DINA gas and gasification of the island of Krk (commissioning is expected in 2.1.13. Omišalj - Zlobin 1000 40 18 100 2017. 2018. 2018 if a positive investment decision for the LNG terminal is made).
2.1.14. Zlobin - Bosiljevo 1000 40 58 100 2018. 2019. Shipping gas from the LNG terminal (commissioning is expected in 2018 if a positive investment decision for the LNG terminal is made).
2.1.15. Bosiljevo - Karlovac 700 28 38 75 capacity increase 2017. 2018. Shipping gas from the LNG terminal and the IAP system depending on the investment decisions for the LNG and/or IAP system supply security (commissioning of Bosiljevo - Karlovac is expected in 2018) 2.1.16. Karlovac - Lučko 500 20 33 75 2021. 2023. (commissioning of Karlovac - Lučko is expected in 2023)
Connecting to the gas system of the Republic of Slovenia by two-way flow due to the possibility of increasing the imported gas quantities or 2.1.17. Lučko - Zabok 700 28 43 75 2017. 2018. increasing the security of gas supply, using the underground storage facility and shipping gas from the LNG terminal and the IAP system (commissioning is expected in 2017)
2.1.18. Bosiljevo - Sisak 1000 40 140 100 2018. 2019. Shipping gas from the LNG terminal depending on the investment decisions for the LNG and/or the IAP system (commissioning of Bosiljevo – Sisak is expected in 2019) 2.1.19. Kozarac - Slobodnica 800 32 128 75 2022. 2023. (commissioning of Kozarac – Slobodnica is expected in 2023)
The increase in the security of supply of Eastern Slavonia, the City of Osijek and making the prerequisites for the construction of the new capacity increase 2.1.20. Donji Miholjac - Osijek 800 32 53 75 2022. 2023. block of the Osijek combined heat and power plant (commissioning is expected in 2023) with the possibility of the long-term security of gas supply security supply.
capacity increase The increase in the security of gas supply of whole Eastern Slavonia (commissioning is expected in 2023) with the possibility of the long-term 2.1.21. Vukovar - Negoslavci 800 32 11 75 2022. 2023. supply security security of gas supply.
capacity increase The increase in the security of gas supply of whole Eastern Slavonia and possibly of a part of the South Stream (commissioning is expected in 2.1.22. Slobodnica - Sotin 800 32 97 75 2022. 2023. supply security 2023)
2.1.23. Gas pipeline for Slavonski Brod East MRS 500 20 2,6 75 capacity increase 2017. 2017. Making possible the existence and the development of the industrial zone and the port of Slavonski Brod
2.1.24. Ludina GN- Okoli UGS 500 20 2,6 75 capacity increase 2015. 2016. Connecting the Okoli Underground Gas Storage to the 75-bar system
49
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
GAS PIPELINE RECONSTRUCTIONS
capacity increase Increase in the security of gas supply of whole Eastern Slavonia, Slavonski Brod and the industrial zone by the reconstruction of the existing 2.1.25. Slobodnica GN - Slavonski Brod GN (reconstruction) 500 20 10,5 75 2017 2017 supply security worn-out and problematic gas pipeline (ex product pipeline) (commissioning is expected in 2017)
2.1.26. Kozarac GN- Lipovica MRS (reconstruction) 100 4 2 50 technical justifiability 2017 2017
2.1.27. Kozarac - Stružec CS (reconstruction) 100 4 7 50 technical justifiability 2017 2017 Reconstructions of the existing gas pipelines (routes) in order to increase the security of gas supply (commissioning is expected from 2016 to 2.1.28. Donji Miholjac - Osijek (reconstruction) 300 12 8 50 technical justifiability 2016 2016 2017) 2.1.29. Rogatec - Zabok ( reconstruction) 500 20 1,2 50 technical justifiability 2016 2016
2.1.30. Zabok - Kumrovec (reconstruction ) 150 6 2 50 technical justifiability 2016 2016 Outlet Inlet pressure 2.2. MEASURING-REDUCTION STATIONS Capacity (m3/h) pressure (bar) (bar) 2.2.1. MRS Brela 2 x 4000 75 2017. 2017. Integral part of the Zadvarje – Brela gas pipeline project / gasification of Makarska Riviera
2.2.2. MRS Zagvozd 2 x 4000 75 2017. 2017. Integral part of the Zagvozd - Imotski – Posušje gas pipeline project / gasification of a wider area
2.2.3. MRS Ploče 2 x 4000 75 2019. 2020.
2.2.4. MRS Pelješac 2 x 4000 75 gasification 2019. 2020. Integral part of the Ploče – Dubrovnik gas pipeline project / gasification of a wider area
2.2.5. MRS Dubrovnik 2 x 4000 75 2019. 2020.
2.2.6. MRS Rakovica 2 x 4000 75 2022. 2023. Integral part of the Lička Jesenica – Rakovica project / gasification of a wider area
2.2.7. MRS Vrbovsko 2 x 4000 75 2022. 2023. Integral part of the Pula – Karlovac gas pipeline system / gasification of a wider area Opera- Year of Nominal diameter F Length of Year of ting Reason of constr. Ord.no. PROJECT NAME pipeline L commissi- NOTE pressure construction commence- (mm) ( " ) (km) oning (bar) ment MRS RECONSTRUCTIONS
2.2.8. MRS Začretje 2 x 4000 50 2023. 2023.
2.2.9. MRS Legrad 2 x 4000 50 2016. 2016.
2.2.10. MRS Gola 2 x 4000 50 2019. 2019.
2.2.11. MRS Hampovica 2 x 4000 50 2019. 2019.
2.2.12. MRS Suha Žbuka 2 x 4000 50 2019. 2019.
2.2.13. MRS Podravske Sesvete 2 x 4000 50 2019. 2019.
2.2.14. MRS Šandrovac 2 x 4000 50 2019. 2019.
2.2.15. MRS Molve Selo 2 x 4000 50 2019. 2019.
2.2.16. MRS Narta 2 x 4000 50 2019. 2019.
2.2.17. MRS Graberje 2 x 4000 50 2016. 2016. The replacement of the existing MRSs with typical MRSs due to worn-out condition, technology obsolescence and security of supply 2.2.18. MRS Kloštar Ivanić 2 x 4000 50 2016. 2016. (commissioning is expected from 2016 to 2023) 2.2.19. MRS Poljana 2 x 4000 50 2016. 2016. technical justifiability 2.2.20. MRS Banova Jaruga 2 x 4000 50 2016. 2016.
2.2.21. MRS Veliki Grđevac 2 x 4000 50 2019. 2019.
2.2.22. MRS Končanica 2 x 4000 50 2019. 2019.
2.2.23. MRS Kuknjevac 2 x 4000 50 2016. 2016.
2.2.24. MRS Brezine 2 x 4000 50 2016. 2016.
2.2.25. MRS Sirač 2 x 4000 50 2019. 2019.
2.2.26. MRS Okoli 2 x 4000 50 2019. 2019.
2.2.27. MRS Sladojevci 2 x 4000 50 2016. 2016.
2.2.28. MRS Čađavica 2 x 4000 50 2019. 2019. Making the prerequisites for the supply of the Slavonski Brod combined heat and power plant and the industrial zone (commissioning is 2.2.29. MRS Slavonski Brod East 120.000 50 2017. 2017. expected in 2017) 2.2.29. MRS Osijek III (reconstruction) 50 2015. 2015. Reconstructions due to worn-out condition, technology obsolescence and security of supply (commissioning is expected in 2016)
2.2.29. MRS Osijek II (reconstruction) 50 2015. 2015. 50
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
2.3. ABANDONMENT OF FACILITIES WHICH ARE OUT OF FUNCTION
2.3.1. Gas pipeline Pepelana PGS - Suhopolje MRS 150 6 2015. 2015.
2.3.2. Ivanić Grad – Kutina gas pipeline 300 12 2015. 2015.
2.3.3. Bjelovar – Križevci gas pipeline 150 6 2015. 2015.
2.3.4. MRS Ilova 2018. 2018. The abandonment of particular technological facilities which are out of function is foreseen with the aim of simplifying and rationalizing the 2.3.5. MRS Novska technical justifiability 2018. 2018. transmission system, reducing operations and maintenance costs as well as raising supply security and reliability in the period from 2015 to 2018. 2.3.6. MRS Voloder 2018. 2018.
2.3.7. MRS Gračenica 2018. 2018.
2.3.8. MRS Repušnica 2018. 2018.
2.3.9. MRS Čaginec 2018. 2018.
2.4. OPERATIONAL FACILITY
The operational facility is foreseen for the accommodation of 13 employees and for all material and technical goods necessary for the 2.4.1. Đurđevac technical justifiability 2016. 2016. supervision and maintenance of about 400 km of gas pipeline, 30 MRSs and for the future maintenance of the planned system (the completion of the construction is expected in 2016)
2.5. COMPRESSOR STATIONS
The compressor station is foreseen for raising the system flexibility and the realization of hydraulic conditions in the system in accordance with 2.5.1. CS 1 2016. 2017. the requirements of the existing and potential users (commissioning is expected in 2017) capacity increase supply security The compressor station is foreseen by the Joint Development Agreement between Plinacro and FGSZ in the scenario of shipping gas from the 2.5.2. CS 2 2017. 2018. LNG terminal to Hungary (commissioning is expected in 2018)
An upgrade of the system for the commercial management of the transmission system capacities is foreseen for adequate monitoring of 2.6. SUKAP – the capacity management system technical justifiability 2014. 2023. continuous changes in the gas market (systematic upgrade of the system from 2014 to 2023)
In accordance with the preparations of laws and sub-legal acts, it is necessary to introduce the new methodology of the system for measuring 2.7. MEASUREMENT SYSTEM – (chromatographs, analyzers) technical justifiability 2014. 2015. gas quality parameters, collecting and processing of data for fiscal use (commissioning is expected in 2015)
2.8. MEASUREMENT SYSTEM (SCADA) technical justifiability 2020. 2020. The modernization or replacement of the existing SCADA system is expected in 2020.
51
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
5.2.2. Interconnections
As already said, the interconnections as the links with the gas transmission systems of neighbouring countries, with their main significance for a reliable, diversificated and competitive supply and the opening of the possibility of transit and use of our storage capacities, are exceptionally important for the development of the entire gas transmission system.
The Ten Year Plan provides the new connecting of the Croatian gas transmission system to the systems of all neighbouring countries. The exception is Hungary where we already have the new interconnection on the Donji Miholjac-Dravaszerdahely route. We have foreseen the three new interconnections with Slovenia, among which the key interconnection is on the Lučko-Zabok-Rogatec route. Its strategic importance has been already mentioned. The smaller interconnection on the Umag-Kopar route has a regional importance. Not less than four interconnections are planned towards Bosnia and Herzegovina and among those interconnections on the Zagvozd-Imotski –Posušje route and the Ploče-Mostar route, it is possible that one of them could not be realized (depending on the schedule of the IAP construction, the WBIF interconnection study and the schedule of the construction of the possible gas power plant in Mostar). We have already said all about the interconnection with the Serbian system in the previous chapter and the interconnection with the Italian gas transmission system on the Omišalj-Casa Borsetti route is included only as an option in case of the Omišalj LNG terminal extension.
52
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
Table 16. Interconnections
3. INTERCONNECTIONS
Operating Reason of Nominal diameter F Year of Length of pressure construction Year of const. Ord.no. PROJECT NAME pipeline L commissi- NOTE commence (km) oning (mm) ( M ) (bar) ment
3. GAS PIPELINES
The connection between the Croatian and the Slovenian gas pipeline system will be realized through the construction of the gas pipeline with the aim of shipping gas from the LNG terminal 3.1.1. Zlobin - Rupa (Kalce) 1000 40 33,8 100 2022. 2023. (commissioning is expected in 2023) The project realization is associated with the realization of the LNG terminal.
The connection between the Croatian and the Italian gas pipeline system will be realized through the construction of the gas pipeline with the aim of shipping gas from the LNG terminal 3.1.2. Omišalj - Casal Borsetti 800 32 146 150 2023. (commissioning is expected in 2023) The project realization is associated with the realization of the LNG terminal.
3.1.3. Umag - Koper 300 12 8 50 2022. 2022. The regional connection between the Croatian and the Slovenian gas pipeline system will be realized through the construction of the gas pipeline (commissioning is expected in 2022)
The connection between the Croatian and the B&H gas pipeline system will be realized through the construction of the gas pipeline (commissioning is expected in 2020). The project 3.1.4. Ploče - Mostar 500 20 7 75 2020. 2020. realization is associated with the realization of the IAP project.
The connection between the Croatian and the B&H gas pipeline system will be realized through the construction of the gas pipeline (commissioning is expected in 2018). The project 3.1.5. Zagvozd - Imotski - Posušje 500 20 22 75 2017. 2018. realization is associated with the realization of the IAP and/or depending on the contract with BH Gas. supply security/ usability increase The pipeline will make an integral part of the Ionian Adriatic Pipeline (IAP) and the connection between the Croatian and the Montenegrin gas pipeline system will be realized through the 3.1.6. Dubrovnik - Prevlaka - Dobreč 800 32 47 75 2019. 2020. construction of the gas pipeline (commissioning is expected in 2020) The project realization is associated with the realization of the IAP project.
The connection between the Croatian and the B&H gas pipeline system will be realized through the construction of the gas pipeline (commissioning is expected in 2023). The project 3.1.7. Rakovica - Bihać 400/500 16/20 10 75/50 2022. 2023. realization depends on the contract with BH Gas.
The connection between the Croatian and the Slovenian gas pipeline system will be realized through the construction of the gas pipeline with the aim of raising supply security, possibility of 3.1.8. Rogatec - Zabok 700 28 34 75 2017. 2018. access to storage capacities and possible shipment of gas from the IAP system and the LNG terminal (commissioning is expected in 2018)
The connection between the Croatian gas pipeline system and the gas pipeline system of the Republic of Serbia and B&H will be realized through the construction of the gas pipeline 3.1.9. Slobodnica - Bosanski Brod 700 28 5,1 75 2018. 2019. (commissioning is expected in 2019)
The increase in the security of gas supply of whole Eastern Slavonia, the connection to the gas pipeline system of the Republic of Serbia and possibly a part of the South Stream 3.1.10. Sotin - Bačko Novo Selo 800 32 5 75 2018. 2019. (commissioning is expected in 2019)
53
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
5.2.3. Other projects This group of projects includes the projects which could not be inserted into the previous two groups, but they are in an unquestionable relation with them and are of essential importance for the further gas transmission system development.
The LNG project in Omišalj is a project towards which the Croatian Government directed the companies Plinacro d.o.o. and HEP d.d., which are 100% owned by it, after consecutive and unsuccessful attempts of development and accomplishment of even two consortiums. Consequently, these two companies have established the company LNG HRVATSKA d.o.o. (Ltd) with equal equity shares (50% : 50%) and have initiated the preliminary activities. These activities are currently developed mostly through the comprehensive feasibility study carried out by the consulting team led by the Danish consulting company COWI and financed (with 1 million euros) by the Western Balkan Investment Framework – WBIF) by funds approved for this purpose at the request of Plinacro. The results of this study, which is practically in its final phase of preparation and a number of activities undertaken in addition to the stated companies also by the Ministry of the Economy and by the Government of the Republic of Croatia, will direct the further project development or its formed, timing, economic- financial and operational components. The planned deadline for the realization of this project is 2018.
The Ionian Adriatic Pipeline Project (IAP) is extraordinary important for the further development of the gas transmission system and it intends to connect the existing Croatian gas transmission system already built up to Split to the TAP system (the Trans Adriatic Pipeline) in Fier in Albania in order to establish a new natural gas supply direction from the Caspian and Middle East sources via Albania and Montenegro to the markets of these countries and to the markets of Bosnia and Herzegovina and of course of Croatia.
Besides the diversificated natural gas supply for the Croatian market, a significant transit to neighbouring countries would be also realized. The extensive preliminary activities, including the obtaining of positive environmentally friendly resolutions, have been carried out for the Croatian part of the gas pipeline system which would be integrated in the Ionian Adriatic Pipeline, and these are the gas pipelines Split – Zagvozd –Ploče and Ploče –Dubrovnik –Prevlaka/Dobreč.
The comprehensive feasibility study carried out by the consulting team led by the Danish company COWI is in the final stage for the entire gas pipeline system from Split to Montenegro and Albania, up to the connection with the TAP system in Fier in Albania, financed (with even 3.5 million EUR) by the Western Balkan Investment Framework – WBIF) by funds approved for this purpose at the request of Plinacro.
The international consortium developing the SHAH DENIZ II gas field in Azerbaijan made the decision by which the Trans Adriatic Pipeline (TAP) was selected for transmission project and by this the Ionian Adriatic Pipeline got a necessary impetus and the beginning of its operation is possible as early as 2020.
The third project in this group of projects is the project by which the Republic of Croatia would be included in the South Stream project.
54
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
In accordance with the Intergovernmental agreement on cooperation in construction and use of gas pipeline in the territory of the Republic of Croatia signed on 2 March 2010 between the Russian Federation and the Republic of Croatia, Plinacro d.o.o. and the Russian company OAO GAZPROM signed the Agreement about feasibility study for the SOUTH STREAM project on 16 May 2011. This jointly financed feasibility study deals with the option of the branch to the SOUTH STREAM pipeline for the market of the Republic of Croatia, on the route of Brčko Novo Selo (Serbia)-Sotin (Croatia)- Slobodnica. The results of this study are included in the consolidated feasibility study of GAZPROM for the whole SOUTH STREAM project. In accordance with the above mentioned, the joint activities have been continued with the aim of establishing the joint company JUŽNI TOK HRVATSKA d.o.o. (PLINACRO d.o.o. 50% : GAZPROM 50%) which should implement this project. There have been many falls and rises in carrying out the stated activities and the basic obstacle is to comply the implementation of the project with the European regulation from the area of natural gas (the Third Energy Legislation Package). This refers not only to the implementation of this project in the territory of the Republic of Croatia, but also in the territories of all EU countries.
This problem has to be solved generally, at the level of the European Union and the Russian Federation and the real beginning of the implementation of the whole project cannot be expected without their compliance.
Finally, the last in this group are the projects for the development of new technologies which are of interest for both the gas transmission system development and for the entire natural gas sector. The project of the application of compressed natural gas (CNG) in traffic may be stated as one of the examples and the activities of Plinacro d.o.o. would be directed exclusively to the study- promotional phase.
Table 19. Other projects
Ord. Reason of no. PROJECT NAME NOTE construction
Plinacro d.o.o. is the cofounder of the company LNG Hrvatska d.o.o. and took part in the research- study phase of the 4.1. LNG project. Further implementation and financing will be decided upon making the final investment decision. security of IAP / Ionian Adriatic supply 4.2. Investments in the study phase – WBIF funds pipeline
4.3. SOUTH STREAM CROATIA Investment in the joint company of Plinacro and Gazprom
PROJECTS FOR THE technical 4.4. DEVELOPMENT OF NEW Investments in the study phase justification TECHNOLOGIES
55
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
6. COMPLIANCE WITH THE NON-BINDING TEN-YEAR NETWORK DEVELOPMENT PLAN OF THE EUROPEAN UNION
The non-binding Ten-Year Network Development Plan (TYNDP) of the EU represents the set of development infrastructure plans (projects) collected from the European transmission system operators and special projects promoters.
The main TYNDP aim is to ensure constant monitoring of the European gas infrastructure, to point out potential defects in the future investment and to try to include a wider dynamic of the European gas market with the view of supply potential, market integration and supply security.
The data on the development projects and gas demands received from the European transmission system operators are used for the modelling of gas transmission and transit network in the ten-year period.
The gas streams are anticipated by modelling in the future with regards to the situations of possible gas supply and demand by particular country and region. The cases associated with gas streams, possible transported quantities and transit under normal conditions as well as for crisis and emergency situations (suspension of gas delivery from Russia, disruptions in delivery through Ukraine and Belorussia, stoppage in delivery from Algeria etc.) are considered.
The shown annual gas demands and the peak daily gas demands by countries are monitored and analysed. The dependence of particular countries on the gas supply source on an annual basis is analysed and the way is observed how all this is changed by the realization of particular or all foreseen development projects.
6.1. Compliance with the non-binding Ten-Year Network Development Plan of the EU for 2011 – 2020
The preparation of the first Ten-Year Network Development Plan (TYNDP) started at the time when Plinacro was completing the second development-investment cycle for 2007-2011 of the Plan for the development, modernization and construction of the gas transmission system in the Republic of Croatia from 2002 to 2011.
The projects which could be nominated in the first TYNDP were exclusively the projects for which the final investment decision was made and the only project which satisfied the mentioned criteria at that time was the Dravaszerdahely – Donji Miholjac – Slobodnica gas pipeline. The mentioned gas pipeline is the only development project of Plinacro which satisfied the criteria to be inserted in the TYNDP first version for 2011-2020.
56
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
6.2. Compliance with the non-binding Ten-Year Network Development Plan of the EU for 2013-2022
The following projects have been nominated by Plinacro in the non-binding Ten-Year Network Development Plan of the EU for 2013-2022:
Interconnection HR/RS/BiH Slobodnica - Bosanski Brod - Zenica Interconnection HR/SRB Slobodnica - Sotin - Bačko Novo Selo Interconnection HR/SLO Bosiljevo - Karlovac - Lučko - Zabok – Rogatec Interconnection HR/ITA Omišalj - Casal Borsetti Ionian Adriatic Pipeline LNG evacuation system Omišalj - Zlobin - Rupa (SLO) LNG main evacuation system (a part of the North-South corridor) Zlobin – Bosiljevo – Sisak – Kozarac - Slobodnica LNGRV project
The above mentioned projects are planned by the Ten-Year Plan but with different schedule in relation to the non-binding Ten-Year Network Development Plan of the EU for 2013-2022. Therefore, Plinacro will nominate the projects with the schedule in accordance with the Ten-Year Plan for the following non-binding Ten-Year Network Development Plan of the EU for 2015-2024.
57
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
7. FINANCING
The investment projects for which the construction is planned in the first regulation period from 2014 to 2016 will be financed from the approved tariff items for the gas transmission.
Plinacro used the possibility of using EU pre-accession funds and received the means for the following projects through the Western Balkans Investment Framework –WBIF:
1. the Ionian Adriatic pipeline- regional project (in cooperation with Albania, Montenegro and B&H, under the coordination of the EC; the Republic of Croatia, i.e. Plinacro – the application holder) – feasibility study, environmental impact study and social impact of intervention
2. the LNG project in Croatia – conceptual design, feasibility study and preliminary design
3. the LNG evacuation gas pipeline Omišalj – Zlobin – Rupa – cost-benefit analysis
BH Gas, the transmission system operator of Bosnia and Herzegovina in cooperation with Plinacro received from the same Framework the funds for the following projects:
1. INTERCONNECTION Zenica – Brod (B&H) – Slavonski Brod (Croatia) – feasibility study and preliminary design
2. SOUTH INTERCONNECTION Bosnia and Herzegovina / Croatia (Ploče – Mostar or Zagvozd – Imotski – Posušje) – pre-feasibility study
By joining the European Union, the possibility of non-refundable grants from EU-funds was opened. The majority of newer energy projects in the European Union has been partly financed through EU funds. However, the economic crisis has also affected the budget of the European Commission, so that the amount and the height of non-refundable grants from EU funds will be limited. Nevertheless, the European Commission has found the way how to co-finance at least partly the projects and help to the projects which directly influence on the reliability and diversification of the natural gas supply in the EU. The determination of the projects of common interest (PCI) and the projects of Energy Community interest (PECI) is essential for that. These are the projects which are necessary for the reliability of supply within the European corridors, i.e. the links which are missing in that chain.
The development projects provided by the Ten-Year Plan are found on the final PCI list (the Commission Regulation (EU) No. 1391/2013 of 14 October 2013 amending the Regulation (EU) No. 347/2013 of the European Parliament and of the Council on guidelines for trans-European energy infrastructure as regards the Union list of projects of common interest and the list of Projects of Energy Community Interest (PECI). In accordance with the above mentioned, Plinacro intends to nominate all development projects for the non-refundable funds of the European Union and to realize the financing also up to 75% of the total project investment where it is possible.
58
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
8. CONCLUSION
In addition to the completion of the construction of the facilities under the Ten-Year Plan for the development, modernization and construction of the gas transmission system in the Republic of Croatia from 2002 to 2011, the first time part of the Ten-Year Plan will be marked by the extensions and the reconstructions of the basic parts of the gas transmission system of the year and the comprehensive preliminary activities for inclusion into new strategic projects (LNG, IAP, SOUTH STREAM) and the related projects.
By the implementation of the Ten-Year Plan which has entered its final phase and by which all planned aims will be achieved, a high level of development of the basic national gas transmission system has been realized. It is necessary to built some of its parts and also to restore some of its existing parts, all this for the purpose of achieving the necessary territorial and market coverage, operative reliability and security of the gas transmission system.
However, the exceptional dynamic on the gas scene in our milieu, accompanied by a large number of transmission-supply projects requires our engagement and comprehensive and intensive development activities. All this with the aim of including the Republic of Croatia in regional and European natural gas streams. It has to be emphasized that we have been already included in many projects, as visible from this business document, and some of them are even initiated by us. The second part of this plan is turned towards this aim, having the greatest financial weight.
The existing financial potential of PLINACRO d.o.o. is not sufficient for the implementation of all planned projects, so that in addition to the revenues realized by the approved amounts of the tariff items for the gas transmission, it will be necessary to seek and ensure other financing sources.
.
59
THE TEN-YEAR DEVELOPMENT PLAN OF THE GAS TRANSMISSION SYSTEM
60