INITIATIVE FOR GAS HUB CREATION IN SOUTH EASTERN EUROPE SOFIA, 09.02.2015 г. Domestic production Fgreat Britain Denmark Holland Norway North Sea Russia Russia ЕС 32 % Share of Russian Gas Domestic production 56 % Share of Russian Gas LNG Potential Domestic fields Black Sea LNG Дял на вноса на газ от Русия спрямо общото потребление по държави за 2013 г Gas import from Russia by states for 2013, bcm/y Romania 1,10 Italy 24,90 Slovakia 5,30 Czech Republic 7,20 Serbia 1,15 Внос на газ от Русия по 0,53 държави за 2013 г.,Slovenia bcm/y Poland 9,60 Hungary 5,90 Share of the gas import from Russia toward the total consumption by states for 2013 100,0% Hu n ga ry Gr ee ce Au st ria Po lan d Se rb ia It a ly Ro m an ia Cr oa tia a ic ve ni bl Slo Re pu ga ria Cz ec h Bu l Slo va kia 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% Austria 5,10 Greece 2,40 BULGARIA KEY FACTOR ON THE REGIONAL GAS MARKET • The geographic location of Bulgaria defines it as a strategic partner • Well designed national gas infrastructure • Well balanced national transit system related with underground gas storage capacity • Exploration of Oil and gas fields in the region • Low domestic consumption - spare capacity for transit • Transparent public procurement procedures and construction at fair prices • Long and short term capacity • Bulgaria will use gained European experience in the development of trading platforms • Unified system for managing gas flows , previously agreed with the European gas partners • Investment opportunities - estimated investment costs Euro 2.2 billion NCG+ Gaspool CEGH BAGA PSV CS Chiren Domestic LNG Southern Gas Corridor 21,1 bcm BULGARIA – GAS HUB Central Europe 1a intermittennt 0 bcm Oriahovo 42,6 bcm/y (Black Sea) 2 1,5 bcm 1b Zajčer 42,6 bcm/y CS 1, 130 MW 2 CS 2, 130 MW bcm/y (Bulgaria) CS Provadia VARNA CS P. Senovets bcm/y CS Lozenets BG Dom 20 CS Petrich 3 bcm/y IGB, 3 bcm TAP LNG South Stream 6 GMS (Black Sea, CS Strandja 0,8 b CS V.Dol GMS CS Bul Dom (Bla New UGS 3,3 bcm/y CS NV 2, 3 CS NV 1 IBS, 1,8 bcm Romania Domestic bcm/y ITB, 3 bcm TANAP LNG Necessary infrastructure on the territory of Bulgaria – preliminary estimate Modernization of the existing infrastructure • • • • Construction of new infrastructure Increase of the capacity of CS Strandja with 10 MW Construction of Lozenets – Rupcha loop – 50 km. Construction of 20 кm. Gas pipelines Modernization and expansion of the North semi-ring ~ 272 кm. • ~ 844 кm. pipelines • 2 compressor stations with total installed capacity of 265MW (in the regions of the city of Levski and City of Provadia) • Construction of a receiving terminal Estimated investment costs Additional storage capacity • EUR 2 200 million – new infrastructure • EUR 140 million – Modernization and expansion of the Northern semi-ring • Chiren UGS expansion • Construction of new underground storage facility GAS HUB – PILOT PROJECT FOR ENERGY UNION • Key mechanism to improve security of gas supply to Europe - a key objective of the European Energy Union, enhancing the negotiating power of the EU and its economic partners vis-à-vis the external gas suppliers • Key project for the implementation of the Internal energy market - to overcome the energy dependence of the region of Southeast Europe, liberalization by creating a competitive gas market in compliance with EU legislation. Improving trans-border grid. • Gas infrastructure, securing the Member States with natural gas at a competitive price, energy-efficient, environmentally friendly energy source - improving energy efficiency. Energy Union should be designed to maximize the benefits of energy efficiency and managing demand. • In addition to energy efficiency, gas infrastructure allows reducing emissions in comparison to production from coal power plants alongside with this Bulgaria has achieved its targets for renewable energy sector. • Modernization of the gas transmission network will allow the use of innovative new technologies, switching to automatic control mode and well balanced transmission system. INITIATIVE FOR GAS HUB CREATION IN SOUTH EASTERN EUROPE THANK YOU FOR YOUR ATTENTION !