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Reverse Flow Project on the Trans Balkan Corridor

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Reverse Flow Project on the Trans Balkan Corridor Reverse Flow Project on the Trans Balkan Corridor CESEC – 8 October 2019, Bruxelles Implementation of the Reverse Flow Project on the Trans Balkan corridor Trans Balkan Corridor – Greek section . Reference document: Concept paper on ensuring bidirectional flows on the Trans Balkan Corridor; . Scope: Offering the firm capacity of 46.535.000 kWh/day (1,5 bcm/y / 4,1 mil. cm./day) on the Transbalkan pipeline until the end of 2019 (Option 1 of the Concept Paper); . Status on the Greek-Bulgarian border: . firm capacity of 46.535.000 kWh/d (or 4,1 mil. Nm3/d) is already available at the I.P. Kulata/Sidirokastro in the direction from GR to BG. In the period Jan-Aug 2019, delivery of 352.151.314 Nm3 (0,35 bcm) was made at the above IP from GR to BG, out of which 4.121.380 Nm3 (0,004 bcm) in physical reverse flow. 2 08 October 2019 / Brussels, Belgium CESEC Gas Plenary Bulgartransgaz EAD Trans Balkan reverse flow project State of play Progress of Trans-Balkan Pipeline reverse flow IP Kulata/Sidirokastro Signed Interconnection Agreement for IP Kulata/Sidirocastro 4,100 mcm/d firm capacity at IP Kulata/Sidirocastro (entry) from 01.04.2019 0,500 mcm/d additional interruptible capacity from 01.04.2019 AIMED RESULT: COST-EFFICIENT AND EXPEDIENT FULL UTILIZATION OF BI-DIRECTIONAL CAPACITY Progress of Trans-Balkan Pipeline reverse flow IP Negru Voda/Kardam Amendment 4 of existing IA for IP Negru Voda 1/Kardam finalized in May 2019 Technical improvements at GMS Negru Voda 1 by Transgaz are required to sign Amendment 4 4,100 mcm/d firm capacity at IP Negru Voda 1/Kardam (exit) after completion of technical improvements Public consultation on the Business rules to the draft IA for IP Negru Voda 2,3/Kardam was held in the period 11.06.2019 - 11.07.2019 Conclusion of the IA for Negru Voda 2,3/ Kardam is forthcoming in the near future AIMED RESULT: COST-EFFICIENT AND EXPEDIENT FULL UTILIZATION OF BI- DIRECTIONAL CAPACITY Thank you for your attention! Yasen Ivanov, Head of Analysis and International Activities Division [email protected] www.bulgartransgaz.bg [email protected] Reverse Flow Project on the Trans Balkan Corridor CESEC – 8 October 2019, Bruxelles Implementation of the Reverse Flow Project on the Trans Balkan corridor Implementation of the Reverse Flow Project on the Trans Balkan Corridor Trans Balkan corridor T1 – Romanian section 8 Implementation of the Reverse Flow Project on the Trans Balkan Corridor Trans Balkan Corridor T1 – Romanian section . Reference document: Concept paper on ensuring bidirectional flows on the Trans Balkan Corridor; . Scope: Offering the firm capacity of 46.535.000 kWh/day (1,5 bcm/y / 4,1 mil. cm./day) on the T1 pipeline until the end of 2019 (Option 1 of the Concept Paper); . Status of the negotiations of the Interconnection Agreements (IA) with adjacent TSOs: . JSC Ukrtransgaz: . Delivery pressure (RO-UA) in IP Isaccea 1 was agreed as follows: . Minimum: 35 barg; . Maximum: 45 barg; . Transgaz completed the works necessary for bi-directional gas metering in the RO-UA direction in the current GMS Isaccea 1; . Upgrading GMS Isaccea 1: it is estimated that the execution contract will be signed until the half of October 2019, the completion deadline is 30.09.2020; . Addendum no. 9 to IA for IP Isaccea 1 is being agreed upon: . Technical aspects to be discussed: . Selection of the commercial gas metering station for metering gas quantity and quality until the upgrading of GMS Isaccea 1 is completed; . Gas quality requirements in case of deliveries from Romania to Ukraine; . Setting the technical capacity of IP Isaccea 1 Exit: all the technical parameters of the IA in the RO-UA direction have to be agreed; 9 Implementation of the Reverse Flow Project on the Trans Balkan Corridor Trans Balkan Corridor T1 – Romanian section . Bulgartransgaz EAD: . Delivery pressure (BG-RO) in IP Negru Vodă 1/Kardam was agreed as follows: . Minimum: 46 barg; . Maximum: 48 barg; . Transgaz completed the works necessary for bi-directional gas metering in the BG-RO direction in the current GMS Negru Vodă 1; . Addendum no. 4 to IA for IP Negru Vodă 1/Kardam was signed by Transgaz and sent to Bulgartransgaz to be signed; . Setting the technical capacity of IP Negru Vodă 1/Kardam Entry: by the Joint Method for the Calculation of the technical capacity of IP Negru Vodă 1/Kardam, which is being amended; . Capacity allocation: . Bidirectional capacity allocation at the IP in the South – North direction will be possible as soon as the national regulatory framework has been amended by the introduction of the capacity allocation mechanism related to reverse flow, as follows: . At IP Negru Vodă 1/Kardam Entry: RBP auction; . At IP Isaccea 1 Exit: implicitly at the level of the maximum capacity of 1.5 bcm/year, from the capacity allocated at IP Negru Vodă 1/Kardam Entry; . Applicable tariffs: The tariffs are approved by ANRE Order no. 64/2019 and are available at: http://www.transgaz.ro/en/transmission-tariffs-2019-2020; 10 Implementation of the Reverse Flow Project on the Trans Balkan Corridor Trans Balkan Corridor T2,3 – Romanian section . Reference document: Concept paper on ensuring bidirectional flows on the Trans Balkan Corridor . Purpose: Ensuring the complete physical bidirectional flow on T1 and T2,3 (Option 3); . Scope: Information on the possibility to ensure bidirectional gas flow on T2,3: . Transgaz is currently analyzing the technical solutions to ensure bidirectional gas transmission . In addition to ensuring the technical conditions for bidirectional gas flow it is also compulsory for the following prerequisite to be fulfilled: . Conclusion of Interconnection Agreements with adjacent TSOs; . Amendment of the legacy contract for gas transmission, related to the T3 pipeline, concluded with Gazprom Export; 11 www.transgaz.ro Trans-Balkan reverse flow initiative implementation. State-of-play Actions done Unbundling ongoing – to be finished by 1 Jan 2020 Ukrainian government approved on 18 Sep 2019 the Resolution determining the final model of unbundling and the procedures to be finished by EOY. Action plan with clear steps and deadlines for all participants of UA natural gas market was approved. Most importantly for implementation of the EU business rules – the company responsible for submission of certification request and the party of interconnection agreements is determined – TSO LLC Interconnection Agreements prepared – to be signed Amendment for Interconnection Agreement between Ukrainian and Romanian TSOs prepared but not yet signed. The first draft of Interconnection Agreement between Ukrainian and Moldavian TSOs for IP Oleksiivka is prepared and is currently discussed by the TSOs. Reconstructions on UA and MD facilities Ukrainian TSO will finalize the reconstructions to enable reverse flow metering on GMS Grebenyky by end of October 2019. Moldavian TSO is also expected to finalize the reconstruction of GMS Kaushany by EOY. Capacity allocation In accordance with Ukrainian Network code, quarterly and monthly capacities of interconnection points, in particular new interconnection import point from Romania, are allocated in December 2019 – 30 calendar days before the beginning of the period for which capacity is allocated. Pending issues and problems to be urgently solved Reconstruction of GMS Isaccea-1 Amendment to Interconnection Agreement between Ukrainian and Romanian TSOs are not yet signed. Moreover, there is no update from Romanian side about the ongoing process and no information about commissioning date of new ultrasonic GMS Isaccea-1, which hinders the initiative as such. To our best knowledge, Romanian TSO started reconstruction of existing GMS, but we are not officially informed thereon. Determination of the commercial metering station for IPs Orlovka-Isaccea 2-3 and IP Tekovo For continued transportation of natural gas between Ukraine and Romania for all interconnection points it is necessary to sign Interconnection Agreements between Ukrainian and Romanian TSOs. The main remaining unsolved issue is determination of commercial gas metering stations to be used from 1 January 2020. This also threatens the reverse flows on IPs Orlovka-Isaccea 2-3. Capacity auctions from RO side for reverse flows Romanian TSO did not auction annual capacity of IP Isaccea-1 in July 2019. On 4 November 2019 quarterly capacities shall be allocated. Moreover, the Romanian TSO informed that there will be no firm capacities in direction to Ukraine due to their obligation to provide firm capacities to Bulgaria, which hinders the reverse flow possibility Synchronization of quality parameters of natural gas In case of transportation of natural gas from Romania to Ukraine there is a need to align quality parameters, prescribed by legislation of Romania and Ukraine. The issue is not yet solved and hinders physical transportation of gas from Romania to Ukraine Transportation of natural gas via Moldova There are existing risks of continued transportation of natural gas between Ukraine and Moldova, as well as transportation of gas through Transnistria due to uncertain legal status of Tiraspoltransgas and unbundling of TSOs in Moldova. Thank you for your attention! 16.
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