Milan Sedlacek - Head of EU affairs and strategy, Eustream – Slovakia

1. eustream, a.s.
Votrubova 11/A, 821 09 Bratislava
www.eustream.sk
Eurasian Natural Gas Infrastructure
Conference
Gas Transmission in the CEE region
Milan Sedláček,
eustream, a.s.
31st May 2017, Milan

2. 2
1. Introduction
2. CEE/SEE – where we are - myths and truths
3. Missing interconnections and import routes
4. Hardware without software is not enough
Agenda

3. Yamal
(33 mld.m3/a)
Eustream
East to South 80.3 bcm/a
South to East 14.6 bcm/a
North – South 24.5 bcm/a
Veľké
Kapušany
• Key infrastructure for delivery of gas to
Central and South Europe and Ukraine
• Biggest TSO for Russian gas towards EU
Eustream is the key player in transit of gas
to Western and Southern Europe

4. Market less developed and: - Russian gas dependency
- CEGH the only liquid hub
- No access to LNG
- Only East - West interconnections
- Fragmented markets
- Russia – Ukraine relations is the issue
- SoS problems
Usual rhetorics - gas market in CEE
Natural gas import dependency by Member
State (intra+extra-EU imports), 2012, %
Missing integration and diversification

5. GPL
NCG
AOC
ZTP
VTP
AT
TTF
NBP
GTF
TRS PSV
PEG
NORD
VTP
SK
CZ
MGP
PL
ZEE
LT
UA
VTP
SI
VTP
CH
Some of that no longer true

6. 6
Jonathan Stern: Natural Gas Pricing: future perspectives and competitiveness with coal, OIES JOGMEC Seminar, Tokyo,
March 2016
Market starts to be developed, at least in CE

7. 7
Jonathan Stern: Natural Gas Pricing: future perspectives and competitiveness with coal, OIES JOGMEC Seminar, Tokyo,
March 2016

8. Wholesale price
in the region
Source:
DG ENER Quarterly report Volume 8., 2015

9. Market less developed and: - Russian gas dependency
- CEGH the only liquid hub
- No access to LNG
- Only East - West interconnections
- Fragmented markets
- Russia – Ukraine relations is the issue
- SoS problems
Usual rhetorics - gas market in CEE
Natural gas import dependency by Member
State (intra+extra-EU imports), 2012, %
Market integration and
diversification
to be improved still

10. 10
1. Introduction
2. CEE/SEE – where we are - myths and truths
3. Missing interconnections and import routes
4. Hardware without software is not enough
Agenda

11. Lanžhot
Baumgarten
Veľké
Kapušany
Cancellation of the existing
Ukrainian transmission route
for Russian gas to Western
and Southern Europe
Planned expansion of
Nord Stream gas pipeline
Nord Stream 2 clearly designed to deliver
Russian gas to Southern and Eastern Europe
(including Italy) by circumventing the
traditional gas corridor through Ukraine
11
Nord Stream 2 Influence on Ukraine
Transmission System

12. Reverse Flow to Ukraine from the EU
OBA regime – Good news from Ukraine
In addition
As of 1/4/2016, Budince is:
- Technically available to export from Ukraine
- OBA regime is in place
Existing Ukrainian
Reverse Flow Options:

13. National plans: are they consistent and
integral from wider perspective? 1. Poland
13

14. National plans: are they consistent and
integral from wider perspective? 2. Czechia
14

15. National plans: are they consistent and
integral from wider perspective? 3. Slovakia
15

16. SK-PL project: essential for the NSI route
Key Facts
CS1 Veľké Kapušany (SK) –
Strachocina (PL)
Length: 164 km (106 km at SK side)
Diameter: DN 1,000 mm
Compression power : 32 MW (16 MW
at SK side)
Flow: Bi-directional
Technical capacity: 4.7 bcm (to SK), 5.7
bcm (to PL)
Total CAPEX: EUR 437.1 mil.* (current
estimate EUR 138.1 mil. at SK side)
* Official CAPEX from CEF grant application. CAPEX at PL side
covers also required upgrades and adjustments of the existing
system
Important Milestones:
Final Observation Conclusions of the EIA January 2016
Zoning Decision April 2017
Building Permits November 2018
Commissioning into commercial operation January 2021
16

17. National plans: are they consistent and
integral from wider perspective? 4. Hungary
17

18. Eastring
TANAP
TAP
Turkish Stream
EastMed
Poseidon
IGB
Ionian Adriatic Pipeline
Tesla Pipeline
RO part of BRUA pipeline
BG-RS interconnector
Southern Gas Corridor Pipeline Projects
Poseidon pipeline
Status: Advanced non-FID
Capacity: 12 bcm/y
COD: EoY 2020
Shareholder structure: IGI Poseidon (100%)
– Edison 50%; Depa 50%
EastMed pipeline
Status: Less advanced non-FID
Capacity: 16 bcm/y
COD: EoY 2020
Shareholder structure: IGI Poseidon (100%)
– Edison 50%; Depa 50%
TANAP
Status: construction
Capacity: 16 bcm/y
COD: 2018
Shareholder structure: SOCAR 58%; BOTAS
30%; BP 12%
Eastring
Status: Less advanced non-FID
Capacity: 20-40 bcm/y
COD: FID+3y
Shareholder structure:
Eustream + partners
TAP
Status: construction
Capacity: 10-20 bcm/y
COD: 2019
Shareholder structure: BP 20%; SOCAR
20%, Snam 20%; Fluxys 19%; Enagás 16%;
Axpo 5%
Turkish Stream
Status: FID
Capacity: 15.75 - 31.5 bcm/y
COD: EoY 2019 (first leg of TS)
Shareholder structure: Gazprom 100%Tesla pipeline
Status: Less advanced non-FID
Capacity: 27 bcm/y
COD: EoY 2019
Shareholder structure: Local TSOs
Interconnector Greece-Bulgaria
Status: FID
Capacity: 3 bcm/y
COD: 2018
Shareholder structure: IGI Poseidon (50%) –
Edison 50%; Depa 50%; Bulgarian Energy
Holding EAD (50%)
Ionian Adriatic pipeline
Status: Advanced non-FID
Capacity: 5 bcm/y
COD: 2022
Shareholder structure: Plinacro; BH-Gas,
governments of Montenegro and Albania
RO part of BRUA pipeline
Status: Advanced non-FID
Capacity: 1.5-4.4 bcm/y
COD: 2020
Shareholder structure: Transgaz 100%

19. Eastring
Option AOption B
Option D
Option C
CAPEX estimated:
(Option A) 1,851 mEUR
(Option B) 2,203 mEUR
(Option C) 2,539 mEUR
(Option D) 2,486 mEUR
Eastring
Capacity: 20 bcm/y bidirectional flow
Length: 832 / 1,015 / 1,187 / 1,160 km
Diameter: 1400 mm COD: EoY 2021
Capacity development: +20 bcm/y in case of higher
market demand
Shareholder structure: Eustream + partners
1. Eastring is dramatically different from other projects in Southern
Europe. Eastring is routed directly to Eustream system, which has
the flexibility to ship gas both to Western Europe and Southern
Europe. Other projects, that are routed directly to Baumgarten, do
not have this possibility. Capacities from Baumgarten from North and
West are very limited.
2. Eastring has the capacity to bring any new gas from Caspian region
and Middle East to practically all regions of Europe.
3. Eastring, unlike many small scale projects and interconnectors (1-3
bcm), with only local or regional significance aims to secure a
capacity of 20 to 40 bcm. The positive contribution of this project,
hence, exceeds the regional boundaries and brings benefits to the
whole EU.
4. Project resolves the missing connection of SEE countries to western
European liquid gas hubs (NCG, GasPool, CEGH, TTF).
Current Status: MoU on both TSO and
governmental level signed between Slovakia
and Bulgaria in 2016.

20. 20
1. Introduction
2. CEE/SEE – where we are - myths and truths
3. Missing interconnections and import routes
4. Hardware without software is not enough
Agenda

21. Sheet/Page Arial, 8 pt, line
spacing 1 line

22. 22
For more information www.eustream.sk