Post on 18-Dec-2015
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The Bulgarian Natural Gas Market:
The TSO’s point of view
Angel Semerdjiev, Executive Officer, Bulgartransgaz EAD
30 January 2009, Sofia
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Development of the gas market in Bulgaria
1963
1974
70 - ties
1993
End of 2006
September2008
Discovery of Chiren - gas field with limited resources
Transformation of the depleted gas field into an UGS
Construction of the main gas pipeline from the former USSRto Bulgaria and the national gas transmission system
Establishment of Bulgargaz EAD – successor of the “Oil and Gas” state owned company. Activities: production, transportation, distribution, storage and sale of natural gas
Unbundling of Bulgargaz in compliance with Directive 2003/55/EC. Establishment of Bulgartransgaz as a TSO
Establishment of Bulgarian Energy Holding (BEH) with 100% state ownership. Bulgartransgaz part of BEH.
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Bulgarian Energy Holding EAD
BEH EAD subject of activities is generation, production, transmission, transit, storage, management, distribution, sale and/or purchase of natural gas, electricity, thermal power, coals, as well as any other type of energy and raw materials for energy production.
The Holding includes the following companies:
● Mini Maritsa East EAD ● Maritsa East 2 TPP EAD ● Kozloduy NPP EAD ● NEK EAD ● Electricity System Operator EAD ● Bulgargaz EAD ● Bulgartransgaz EAD ● Bulgartel EAD.
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Bulgarian Energy Holding EAD
With the establishment of BEH, Bulgaria has one of the largest
energy companies in the region with:
assets EUR 4.3 billion
consolidated revenue EUR 1.8 billion
number of employees 21 000 people.
All companies of the holding structure preserve their operational
independence and licenses, as they are all owned and directly
subordinated to the corporate centre BEH EAD.
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Present situation of Bulgarian gas market (1):
Main players:
Public supplier (Bulgargaz) – imports gas from Gazprom
(through contracts with three trading companies: Overgas Inc., Gazpromexport,
WIEE)
TSO (Bulgartransgaz) – natural gas transmission
SSO (Bulgartransgaz) – storage of natural gas
Producer (Melrose Resources) - Galata field
Five gas distribution regions
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Present situation of Bulgarian gas market (2):
One source and one route of natural gas – full dependence
on Russian-Ukrainian conflicts;
Contract for transmission only between the TSO and the
Public supplier: Public supplier holds all the contracts with
different customers and represents their interests - No direct
contact of the TSO with individual customers, no contracts
for balancing with individual customers;
Transmission Tariff – Post stamp.
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The licenses of Bulgartransgaz EAD:
The gas companies carry out their activity as per licenses,
granted by the State Energy and Water Regulation
Commission (SEWRC).
SEWRC has granted to Bulgartransgaz the following licenses:
License on natural gas transmission: the only one for the territory of the country;
License on transit transmission of natural gas;
License on natural gas storage.
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Bulgartransgaz EAD is owner and operator of:
Domestic gas transmission network in Bulgaria
1700 km of gas pipelines
4 compressor stations with total installed capacity 60 MW
Transit network in Bulgaria to Balkan region 945 km of gas pipelines:
40-48’’- 740 km; 20-28’’ - 195 km
6 compressor stations with total installed capacity 214 MW
Underground gas storage
the only one within the territory of Bulgaria.
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Chiren UGS
Legend:Main gas pipelineGas pipeline branchTransit gas pipelineCompressor stationGas reduction station
CS Kardam 1
CS Kardam 2
CS Lozenetz
CS Strandja
SevlievoLovech
Zlatna Panega
Roman
Botevgrad
Elin Pelin
Pleven
Sofia
Pernik
Vratza
MontanaRusse
Razgrad
IsperihKubrat
Turgoviste
BialaLevski
Varna
Dobrich
Gen. Toshevo
Burgas
DebeltIambol
Sliven
Rakovski
PlovdivPazardjik
Asenovgrad
Parvomaj
Stara Zagora
Dimitrovgrad
HaskovoCS Petrich
ROMANIA
SERBIA
GREECE
TURKEY
CS Polski Senovetz
CS IhtimanNova Zagora
CS Provadia
MACEDONIA
CS Valchi dol
Gas Transmission Infrastructure in Bulgaria:
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Organizational Structure of Bulgartransgaz
The structure of Bulgartransgaz EAD includes headquarter in Sofia
and regional offices in Botevgrad, Stara Zagora, Chiren, Ihtiman,
Valchi dol and BTRV and Repair.
Main divisions of the headquarter office:
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Gas transmission for domestic Market:
Capacities and utilization of the pipelines
The transmission of natural gas for domestic use during the last five
years shows a slight increase.
At the time the main system was built there were more working
facilities using natural gas and at present there is a lot available
capacity.
Natural gas transmission in Bulgaria in 2008:
3.65 bcm (44% of the capacity of the pipeline)
Although there is a lot of free capacity in the domestic pipelines a future
congestion near the town of Varna is expected.
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Gas transmission for Transit:
Capacities of the pipelines and real use
Bulgartransgaz transits natural gas to Turkey, Greece and Macedonia.
Total transit in 2008 – 16.7 bcm.
Transit by counties:
Turkey 13,71 bcm (81.5% of the capacity of the pipeline)
Greece 2.85 bcm (61.4% of the capacity of the pipeline)
Macedonia 0.12 bcm (12.4% of the capacity of the pipeline)
There is a long-term contract for the quantities of natural gas to the
three countries and a reasonable change in these quantities in the next
five years is not expected.
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National gas storage: Status quo plans 2011
One storage with total volume of working gas 560 Mcm 850 Mcm
Number of injection-withdrawal wells: 22 40
Maximum injection capacity daily: 4 Mcm 8 Mcm
Maximum withdrawal capacity daily: 4.3 Mcm 10 Mcm
In year 2008:308.4 Mcm of gas were injected and 246.6 Mcm were withdrawn.
Present production field near Galata is expected to become also a storage facility after year 2010.
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Construction of about 150 km gas transmission pipelines
Dobrich-Silistra and UGS Chiren–Kozloduy–Oryahovo.
To be accomplished by the middle of 2012 with own resources
and financing from Kozloduy International Decommissioning
Support Fund.
Additional drillings and over-ground facilities aiming at
expanding the UGS Chiren working gas volume, injection and
withdrawal capacity.
Investment activities - domestic:
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Lessons drawn from Winter crisis 2009
There is an urgent need of diversification:
Bulgaria is the most vulnerable European country, with full
dependency on Russian gas and only one supply route through
Ukraine;
Negotiations and agreements for new volumes and capacities in order
to differentiate the routes and sources of supplies;
Interconnections to neighboring countries;
Expanding UGS Chiren capacities and speeding up the conversion of
Galata gas field into second Bulgarian underground gas storage;
Research of opportunities related to natural gas production and LNG
terminal(s) construction.
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Other tasks of Bulgartransgaz for the near future:
1. Application for new Tariffs before SEWRC Tariffs for transmission and storage;
Tariffs for access and connection to network;
Tariffs for balancing.
2. Elaboration of Network code.
3. Work on transparency requirements: On-line booking and publication of available capacities in
transmission system and UGS, etc.
4. On-line protocol for communication with customers
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Thank you for your attention!