USAID Energy Investment Activity Security of Natural Gas Supply in BiH Conference on Security of Gas Supply in Bosnia and Herzegovina Dušan Gvozdenac Hotel Termag, Jahorina, July 2 3, 2018
Topics: 1. Trans-European and Regional Natural Gas Pipeline Projects 2. Gas Pipelines that Can Increase the Security of Supply in BiH 3. Possible and Desirable Directions of Gas Supply in BiH 4. Conclusions 2
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Origin of Gas Supply in 2015 for the Area of EU28 4
Global LNG market - Qatar - Nigeria - USA - Russia etc Southern corridor pipeline Possible Sources of Supply for European Gas Import Demand 5
GAS 09 GAS 11 GAS 25 GAS 20, 21 and 22 GAS 13 GAS 01 GAS 02 GAS 03 GAS 04 B GAS 08 GAS 10 GAS 14 GAS 18 GAS 23 GAS 16 Projects of Energy Community Interest (PECI) Gas Interconnector Bulgaria Serbia (IBS) Gas Interconnector Serbia FYR of Macedonia Trans-Balkan Corridor Bi-Directional Flow between Moldova and Ukraine Caspian Region, crossing Azerbaijan, Georgia and Turkey and reaching markets in Georgia and Albania (via Trans-Adriatic Pipeline). Albania-Kosovo Gas Pipeline (ALKOGAP) Projects of Mutual Interest (PMI) Interconnection Pipeline BiH-HR North (Slobodnica-Brod-Zenica) Interconnection Pipeline BiH-HR West (Lička Jesenica-Tržac- Bosanska Krupa) Interconnector BiH-HR South (Ploče-Mostar-Sarajevo; Zagvozd- Posušje-Travnik Gas Interconnection Greece FYR of Macedonia (IGF) Gas Interconnection Serbia Romania Gas Interconnection Serbia - Croatia Gas Interconnection Poland Ukraine Romania Moldova Gas Interconnector (Ungheni Chisianau) White stream Gas Pipeline Ionian Adriatic Pipeline (IAP) 6
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Events since spring 2017 have greatly accelerated the development of the White Stream and Trans-Caspian Pipeline (TCP) projects, which are key building blocks for the wider Southern Gas Corridor bringing gas from Central Asia to Europe. 8
TANAP (Trans-Anatolian Natural Gas Pipeline) With the route of 1,850 km, TANAP is the longest of three segments of the so called Southern Gas Corridor that will, for the first time, supply gas from Azerbaijan to Europe directly. Annual capacity of TANAP will be 16 bcm/y. Out of that, Turkey will use 6 bcm/y and the remaining ten billion will be delivered to the European market. It is planned to increase the capacity of the TANAP Gas Pipeline until 2023 to 23 bcm/y and to 31 bcm/y until 2026 The costs for the construction of TANAP are about USD 8.5 billion 9
TAP (Trans Adriatic Pipeline) + IAP (Ionian Adriatic Pipeline) 10
TAP (Trans Adriatic Pipeline) TAP is 867 km long pipeline for the transport of gas from Azerbaijan. TAP transports gas from the Greek border over Albania and the Adriatic Sea to Italy and further on to Europe, Design capacity of the TAP gas pipeline is about 10 bcm/y. This capacity has been leased by Azerbaijan. The commissioning of this gas pipeline is expected in 2019 2020. The gas pipeline will also have additional capacity of 10 bcm/y. Possible leaseholder of this capacity is Russian GASPROM. This will require installation of additional compressor stations. 11
IAP (Ionian Adriatic Pipeline) The IAP conects the existing Croatian gas transmission system, via Montenegro and Albania with the TAP system. The total length of the gas pipeline from the Croatian town Split to Albanian town Fieri is 511 km. Its 5 bcm/y capacity provides the natural gas supply of Albania (1 bcm), Montenegro (0.5 bcm), the south of Bosnia and Herzegovina (1 bcm) and Croatia (2.5 bcm). The implementation of the entire Ionian Adriatic Pipeline project enables opening of the new energy corridor for the SEE region within the fourth EU transmission corridor, with the aim to establish a new natural gas supply direction from the Middle East and Caspian region. The IAP will have a bidirectional gas flow possibility i.e., it will be able to provide natural gas supply to SEE from other sources, one of them the future LNG solution on the island of Krk. 12
Turkish Stream Lenght Diameter Capacity Anticipated Operational Date 1,100 km Out diameter of 32 (813 mm) and will be installed in water depth up to 2,200 m Two streches: Each will have capacity of 15.75 bcm/y 2020 13
Greek Regional Gas Project The Tesla pipeline is a proposed natural gas pipeline which would connect the planned Turkish Stream pipeline (extending from Russia across the Black Sea to Turkey) further on to Central Europe, via Greece, Macedonia, Ser bia and Hungary, ending at the Baumgarten gas hub near Vienna, Austria. 14
BRUA (Bulgaria, Romania, Hungary and Austria) The most important connection for the BRUA pipeline is made within the Greek section of the TAP pipeline where the Greece- Bulgaria Interconnector (IGB) will enable transport of gas into Bulgaria and thus the start of the pipeline infrastructure for BRUA. Another pipeline that can be connected to the BRUA pipeline is proposed to run from the recently found gas reserves located offshore in the Black Sea. If plans go ahead to build offshore gas wells, the transportation of this gas will be carried via new pipeline running from Constanta to the BRUA GCS at Podisor. The bi-directional ability of the Project will allow for the Black Sea gas to be quickly distributed to both North and South Europe. 15
BRUA (Bulgaria, Romania, Hungary and Austria) 16
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The Gas Ring Observing wider the position of BiH and neighboring countries, the construction of planned gas pipelines will create the gas ring that will undoubtedly increase the security of supply of all parts within that ring. Existing pipelines Studies ongoing Potential projects not coordinated yet 18
Infrastructure in Serbia and the Supply of BiH from the Direction of Serbia 19
For Serbia, interconnections with Bulgaria and Romania are especially important. However, these interconnections are also important for BiH because it can buy gas from countries other than Russia over these interconnections. Basic data about these interconnections are as follows: GAS INTERCONNECTOR SERBIA-BULGARIA section on the territory of Serbia Pipeline length 109 km Pipeline diameter DN 700 Commission year 2022 Investment cost 85 M Project Status: FS and CBA implemented. Ongoing design and expropriation activities. Geo exploration works in progress. GAS INTERCONNECTOR SERBIA-ROMANIA section on the territory of Serbia Pipeline length 10 km Pipeline diameter DN 500 Commission year 2020 Investment cost 10 M Project status: Joint Serbian and Romanian TSO. Pre FS and ongoing analyzes for optimum technical solution of the Project. Spatial Plan is in the phase of preparation 20
Infrastructure in Croatia and Possible Supply of BiH from the Direction of Croatia The transportation system managed by the transportation system operator, Plinacro d.o.o., consists of international, major, regional and terminal gas pipelines and facilities on the gas pipeline, measuring reduction stations (MRS) with different capacities and other facilities and systems that enable reliable and safe operations of the transportation system. Especially favorable position of BiH in relation to the gas system of Croatia can easily be noticed, as well as numerous possibilities for the connection to this system. 21
Existing and future gas pipeline in BiH Total Future Capacity: 4.9 bcm/y 22
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1. If we talk about planned and possible interconnections of gas for BiH then, possible future consumption of gas is 4.9 bcm/y 2. The potential of current and planned gas pipelines in the closer and remoter vicinity will certainly ensure secure gas supply in BiH. 3. Gas consumption in BiH is very low (0.22 bcm/y) which indicates the need to intensify works on the promotion of the use of natural gas in BiH. 4. Perhaps, the best way is to follow offered scenarios for the development of energy sector envisaged in the EU Energy Roadmap 2050. 24
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