Connecting regions: The Hungarian-Slovakian Gas Interconnector

Transcription

1 Connecting regions: The Hungarian-Slovakian Gas Interconnector Lajos Bütösi Magyar Gáz Tranzit Zrt. 6th Annual Energy Conference Bratislava, 26 November, 2012

2 2 Content 1) Strategic Importance 2) Interconnectot Background 3) Commercial and Regulatory background 4) Project Details 5) Project development

3 2) Strategic Importance: Being an integrated part of North-South Gas Corridor, the interconnector provides an alternative gas supply route and enhanced security of supply For demonstration purpose only Potential route of N-S Corridor Potential route of South Stream Potential route of Nabucco Potential LNG terminal HU-SK Interconnector section Significance of the Interconnector * Depending on the realization of infrastructure projects ** Eg.: TAP, AGRI, etc. Source: MGT Security of supply*: Diversification of future sources*: Polish shale gas Polish LNG Croatian LNG Middle Eastern and Asian sources via Nabucco Diversification of Routes Connecting West-East directional pipeline systems Access to Croatian LNG / Nabucco / South Stream Possible access to other infrastructures** Allowing reverse flow Access to Storage facilities Connection of gas markets More liquid, unified European gas market Price convergence 3

4 1) Interconnector Background: A Magyar Gáz Tranzit Zrt. mint új szállítói rendszerüzemeltető valósítja meg a As a new Hungarian Transmission System Operator, Magyar Gáz Tranzit Zrt. magyar-szlovák összekötő gázvezeték beruházást in cooperation with Eustream a.s. develops the HU-SK Gas Interconnector Magyar Gáz Tranzit Zrt., the new Hungarian TSO Primary goal is to build the HU-SK interconnector Magyar Gáz Tranzit Zrt. was established as of 1st Jan, 2012 The primary goal of our company is to build the new, highpressure Hungarian-Slovakian Gas Interconnector The company received a Transmission System Operator according to technical plans with reverse flow capabilities (TSO) licence on 24 February, 2012 and to start commercial operation by 1st January, Major shareholders with equal stake: o MVM Magyar Villamos Művek Zrt. o MFB Invest Zrt. We are determined to sell the pipeline capacities without discrimination and to transmit natural gas efficiently on a reliable, continuous basis. The good cooperation with our business partners, especially with Eustream a.s. is a key factor for MGT. Important part of North-South Gas Corridor Being an integrated part of the planned North-South Gas Corridor, the European Union provides 30 million EUR EEPR fund for the project and the Hungarian government declared the project as a priority public investment. The new pipeline highly contributes to the energy supply security of the region, provides and alternative supply route for natural gas and enhances the establishment of a liquid, unified European gas market. Vel'ké Zlievce Vecsés Key parameters of the pipeline Diameter: DN800 Pressure: PN75 Lenght (HU): 94 km Lenght (SK): 21 km Planned capacity: ~5 billion mᵌ/year Source: MGT 4

5 3) Commercial and regulatory background: Further enhancement of the Hungarian regulatory environment will support the realization of the project Connecting Gas Markets requires legislative changes Hungarian Government is commencing a dialog with the Hungarian gas industry, visioning the Gas strategy for Hungary after 2015, so called Gas Vision 2015 The submission date for comments is by end of November 2012 Consultation until early 2013 The Hungarian gas exchange, CEEGEX is expected to start by early 2013 Hungarian regulation is switching to multi-tso model that requires certain changes in legal environment Expected timing of the change is early 2013 In order to increase the potential market liquidity in Central Easter Europe Allowing Traders to have access to a more diversified supply portfolio Price convergence to Western European Gas hub prices Fostering optimization possibilities Access more storage capacities On top of the security of supply, enhancing optimization possibilities Source: MGT 5

6 4) Project details: 4 The DN800 pipeline with reverse-flow capacities will cross the border near Balassagyarmat at river Ipel with horizontal drilling technology Block Valve Compressor station Budapest Vel'ké Zlievce Balassagyarmat Romhány Szada Rád Vecsés End points Border Diameter: DN800 Pressure: PN75 Lenght (HU): 94 km Lenght (SK): 21 km Planned capacity: Infrstructures to be crossed (HU): Road: 32 Highway: 6 Railway: 8 River/Creek: 5 ~5 billion mᵌ/year Source: MGT 6

7 5) Project Development: The project (HU section) is on schedule, planning phase is ongoing, some pipeline material already arrived to the depo, construction is expected to start in spring 2013 Status of the Project (HU section) EPC contract was signed in September, 2012 Planning is ongoing Pipeline material is continuously arriving to the Depo at Balassagyarmat, 27 km will be delivered by the end of December 2012 Construction works are expected to start in spring 2013 Preparation of Hungarian legislative changes for the new, multi-tso model and long term capacity booking are ongoing, expected timing is in Q Letter of intents for capacity bookings are signed with shippers, capacity sales and binding contracts are expected in early 2013 Expected start of test period: 1 July, 2014 Expected start of commercial operation: 1 January, 2015 Pipeline material arrives to depo in Balassagyarmat in November, 2012 Source: MGT 7

8 Thank you for your kind attention!