SGC Gas Regional Group meeting

Preparation of the third Union list of PCIs Presentation of and discussion on the PCI

candidates

Brussels, 16 February 2017

European Commission, DG ENER

Unit B1 Networks & Regional Initiatives

Agenda (14:00 – 17:00)

1. Welcome & presentation of the agenda- the Commission

2. Presentation of the TYNDP 2017 – ENTSOG

3. Information on the outcome of the call for the PCI candidates for the third Union list - the Commission

4. Presentation of the PCI candidates - the promoters of the PCI candidates

5. Presentation of and discussion on the proposal for the PCI candidates-groupings to be subject to the project specific cost-benefit analysis - all

6. Final remarks • Next steps and timeline for the process

• Supervision strategy for PCIs

Presentation of the TYNDP 2017 – ENTSOG -

Information on the outcome of the call for the PCI candidates for the third Union list

(SGC Gas) - the Commission -

PCI candidates for the third Union list of PCIs (SGC Gas)

PCI no (2nd list) TYNDP Code

TRA-N-1138

TRA-F-221

TRA-N-339

7.1.2 bisTRA-N-1129

7.1.7TRA-N-014

NEW PCITRA-N-971

NEW PCITRA-N-545

NEW PCI but part

of 7.1.6TRA-N-941

7.1.3TRA-F-051

7.1.7TRA-N-014

7.1.4TRA-N-010

7.1.2TRA-N-128

7.1.2 bisTRA-N-1129

7.1.7TRA-N-014

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7.1.7 Komotini — Thesprotia pipeline (EL)Compressor Station Kipi

Compressor Station Kipi Increment

Komotini-Thesprotia pipeline

7.1.4 Gas pipeline from Greece to ItalyKomotini-Thesprotia pipeline

Poseidon Pipeline

7.1.3 Gas pipeline from Greece to Italy via Albania

and the Adriatic Sea Compressor station at Nea Messimvria

Infrastructure gas pipeline Skopje - Tetovo - Gostivar - Albanian

border

Metering and Regulating station at Nea Messimvria

Trans Adriatic Pipeline

7.1.2 Gas compression station at Kipi (EL)Compressor Station Kipi Increment

Komotini-Thesprotia pipeline

7.1.1 Gas pipeline to the EU from Turkmenistan and

Azerbaijan, via Georgia and Turkey

7.1.1South Caucasus Pipeline Future Expansion - SCPFX

TANAP - Trans Anatolian Natural Gas Pipeline Project

Trans-Caspian

PCI Label TYNDP Project name

PCI candidates for the third Union list of PCIs (SGC Gas) cntd.

PCI no (2nd list) TYNDP Code

7.3

TRA-N-1146

7.3.1TRA-N-330

NEW PCITRA-N-1091

7.4.2TRA-N-140

TRA-N-339

TRA-N-053

NEW PCI but part of

7.1.6 TRA-N-971

NEW PCITRA-N-1091

NEW PCITRA-N-007

NEW PCITRA-N-068

Ionian - Adriatic Pipeline (IAP), Fieri (Alb)-Split (Hr)Ionian Adriatic Pipeline

TAP InterconnectionDevelopment for new import from the South (Adriatica Line)

Metering and Regulating station at Nea MessimvriaCompressor station at Nea Messimvria

Metering and Regulating station at MegalopoliMetering and Regulating station at Megalopoli

Gas pipeline from EU to Turkmenistan via Black Sea,

Georgia and Azerbaijan

NEW PCITrans-Caspian

White Stream

7.4.2 Interconnector between Turkey and BulgariaInterconnection Turkey-Bulgaria

7.3.1 Pipeline from offshore Cyprus to Greece

mainland via Crete EastMed Pipeline

Metering and Regulating station at Megalopoli

7.3.2 - Removing internal bottlenecks in Cyprus to

end isolation and to allow for the transmission of gas

from the Eastern Mediterranean region

Cyprus Gas2EU

PCI Label TYNDP Project name

PCI candidates for the third Union list of PCIs (SGC Gas) For information – applicants requesting inclusion in PCI cluster 7.1

PCI Label PCI no (2nd list) TYNDP Project name TYNDP Code

7.1 -PCI Cluster of integrated, dedicated

and scalable transport infrastructure and

associated equipment for the

transportation of a minimum of 10bcm/a

of new sources of gas from the Caspian

Region

7.1

Compressor Station Kipi TRA-N-128

Compressor Station Kipi Increment TRA-N-1129

Development for new import from the South (Adriatica Line) TRA-N-007

Ionian Adriatic Pipeline TRA-N-068

South Caucasus Pipeline Future Expansion - SCPFX TRA-N-1138

Trans Adriatic Pipeline TRA-F-051

Trans-Caspian TRA-N-339

White Stream TRA-N-053

Presentation of the PCI candidates

- the promoters –

Rules for the presentations:

• Presentation should include:

• a short description of the project,

• a capacity increment,

• an information on the state of advancement and commissioning date,

• an indication under which category of gas infrastructure mentioned in Annex II(2) to the TEN-E Regulation the project belongs,

• an explanation on how the project complies with the general assessment criteria laid down in Article 4(1) of the TEN-E Regulation and in particular why the project is necessary for the SGC Gas Corridor and what the cross-border impact of the project is.

• Presentation must not exceed 3 minutes.

• Slide should include a map showing the location of the project.

• One presentation for an interconnector.

Order of presentations:

• TANAP

• SCPFX

• Trans-Caspian Pipeline

• TAP

• Metering and Regulating station at Nea Messimvria

• Compressor station at Nea Messimvria

• Infrastructure gas pipeline Skopje-Tetovo-Gostivar-Albanian border

• Compressor Station Kipi

• Compressor Station Kipi Increment

• Komotini-Thresprotia Pipeline

• Poseidon Pipeline

• EastMed Pipeline

• Metering and Regulating station at Megalopoli

• Cyprus Gas2EU

• Interconnection Turkey-Bulgaria

• White Stream

• Ionian Adriatic Pipeline

• TAP Interconnection

Trans Anatolian Natural Gas Pipeline Project

TANAP Project Scope

(1334 km) (476 km)

Pipeline Route

Pipeline (1850 km)

Gas Transmission Capacity

(2x19 km)

Project Phase Actual Progress

Phase 0 – Gas to Turkey 74.8%

Phase 1 – Gas to Europe 38.5%

OVERALL 64.8%

South Caucasus Pipeline Future Expansion (SCPFX) Project

The list of performed studies up to date: - Pipeline Route Study in

Azerbaijan - Block Valve Station

Selection - Feasibility Study –

Borjomi region, Georgia - Geotechnical

Investigation in Azerbaijan and Georgia

- Spaceborn and Terrestrial Survey

For the transportation of +5 bcma/y, the scope (in red) comprises the followings: - Construction of new compressor station in Azerbaijan (~80

MWh); - Installation of 3 sections of 48” pipeline loop in Georgia

totaling 93 km. SCPFX project is currently at Select Stage.

Trans Adriatic Pipeline (TAP)

Facilitating interconnections

with several markets

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TAP’s Key Features

Can expand from 10 to 20bcm/a

878 km 105 km offshore

48” onshore 36” offshore

Built-in physical

reverse flow

Trans Adriatic Pipeline AG

TRA-N-941 M/R station at Nea Messimvria to TAP

Description: This projects consists of a bi-directional Metering & Regulating station enabling the

connection of the DESFA system with TAP (at first in the direction DESFA-TAP, at a second phase

in the opposite direction).

Capacity Increment: 142 GWh/d.

Status: The project is in the phase of basic design tender/award.

Commissioning: 2019

Criteria: (a), (b), (c ii) The project is located in Greece but has an impact in the TK/GR cross-

border flow.

TRA-N-971 Compressor station at Nea Messimvria

Description: The projects consists of a compressor station allowing the reverse flow at the

connection with TAP (i.e. from DESFA system to TAP)

Capacity Increment: 143 GWh/d.

Status: under consideration

Commissioning: 2022

Criteria: (a), (b), (c ii) The project will provide a partial alternative source of supply for TAP

Infrastructure gas pipeline Skopje-Tetovo-Gostivar-Albanian border

TRA-N-128 Compressor Station Kipi

Description: The project consists of a compressor station on the GR side of the GR/TK border with a

capacity of 9 MW in a 1+1 x 4,5 MW configuration.

Capacity Increment: 54 GWh/d

Status: The implementation is subject to the investment decision for 3rd party projects (Poseidon pipeline

in SGC and/or LNG terminal in Northern Greece in NSI-East)

Commissioning: 2020 (tentative)

Criteria: (a), (b), (c ii) The project is an enabler for projects with significant cross-border impact

TRA-N-1129 Compressor station Kipi increment

Description: The project consists of a compressor station on the GR side of the GR/TK border with a total

capacity of 29,1 MW (including the capacity of TRA-N-128) in a 2+1 x 9,7 MW configuration

Capacity Increment: 275 GWh/d (on top of the 54 GWh/d of TRA-N-128)

Status: The implementation is subject to the investment decision for 3rd party projects (Poseidon pipeline)

Commissioning: 2020 (tentative)

Criteria: (a), (b), (c ii) The project is an enabler for a project with significant cross-border impact

TRA-N-014 Komotini – Thesprotia pipeline

Description: The project consists of a 613 km (42”) pipeline with 58 MW compression capacity that

will be part of the Interconnector Turkey-Greece-Italy.

Capacity Increment: 275 GWh/d

Status: The implementation is subject to the investment decision for 3rd party projects (Poseidon

pipeline)

Commissioning: 2020 (tentative)

Criteria: (a), (b), (c ii) The project is an enabler for a project with significant cross-border impact

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IGI Poseidon Projects

POSEIDON

EASTMED

Komotini

Thesprotia

Otranto

Poseidon EastMed

50% 50%

100% 100%

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Poseidon Pipeline

POSEIDON

EASTMED

Thesprotia

Otranto

• The Poseidon project consists of a multisource offshore pipeline that will connect the Greek and Italian natural gas systems and transport gas available at the Greek borders from, e.g. Caspian, East Mediterranean, and Middle East sources.

• The Poseidon project addresses the following main needs:

• enhance energy security through the promotion of diversification of sources, routes and counterparts and improves the market integration via synergies with existing/new infrastructures.

• boosts competition in destination markets with additional new supplies and, in conjunction with the EastMed pipeline, enables delivery of a completely new source, via a new and exclusively European route to Italy and beyond.

• supply in reverse flow the Greek system and thereby contribute decisively during disruption periods.

POSEIDON Capacity: 14 Bcm/y (under assessment 20 Bcm/y ) FID: 2017 COD: 2H 2020 Status: Development activities completed

Komotini

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EastMed Pipeline

POSEIDON

EASTMED

Komotini

Thesprotia

Otranto

• The EastMed project is an approximately 1900 km offshore/onshore pipeline project that will directly connect the East Mediterranean gas resources to the European gas system.

• EastMed project addresses the following main needs:

• increases security and diversification of gas supplies to Europe, as well as competition in line with the EU objectives to complete the internal energy market;

• integrate Cyprus with the European gas system, further promoting gas trading in the South Eastern Europe region

• secures access to gas sources strategically located for EU , thus limiting the dependence on third countries

EASTMED Capacity: 10 Bcm/y FID: 2019 COD: 2H 2022 Status: Pre-FEED activities completed

TRA-N-1091 Metering & Regulating station at Megalopoli

Description: The projects consists of a Metering & Regulating station allowing the injection to the DESFA

system of gas delivered by the East Med pipeline.

Capacity Increment: 90 GWh/d

Status: The implementation is subject to the investment decision for the East Med

Commissioning: 2022 (tentative)

Criteria: (a), (b), (c ii) The project is an enabler for the East Med to cross the CY/GR border

HYDROCARBONS SERVICE MINISTRY OF ENERGY, COMMERCE, INDUSTRY AND TOURISM

Project promoter: Ministry of Energy Commerce, Industry and Tourism (MECIT)

7.3. Cluster of projects (SGC)

Member States: CY, GR

Supply gas resources to EU from Levantine Basin (Cyprus and Israel) as well as from other East Med potential resources.

The 7 options for removing internal bottlenecks in Cyprus are the following:

1) Cyprus Gas Pipeline (from Aphrodite to Vasilikos),

2) Pipeline from Aphrodite to Egypt,

3) FSRU for LNG imports to Cyprus (New gas supply solution by Cygas/DEFA),

4) EastΜed Pipeline (cross-border pipeline from Cyprus to Greece via Crete

5) FLNG (small scale) to Aphrodite,

6) LNG Storage (Mediterranean Gas Storage),

7) CNG

The project is included as a cross-border pipeline in the new TYNDP 2017 of ENTSOG (TRA-N-1146).

7.3.2 Removing internal bottlenecks in Cyprus to end isolation and to allow for the transmission of gas from the Eastern Mediterranean region (CyprusGas2EU)

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Interconnection Turkey-Bulgaria (PCI 7.4.2)

ITB is a new onshore gas pipeline in the section between the village of Lozenets and the Bulgarian-Turkish border (village of Strandja). Technical characteristics: • Length: ~76 кm (on BG territory), DN 700 mm; • Capacity: 3 bcm/y • Operating pressure: 64 bar • CS Lozenets–2. State of advancement: Feasibility study - finalized in 2016 - co-financed by the EU / CEF Action: 7.4.2-0061-BG-S-M-14 Commissionning date: 2020

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BULGARIA

TURKEY

• According to the energy infrastructure categories, mentioned in Annex II of the TEN-E Regulation(No 347/2013) the project belongs to 2 (a). • The project is located on the territory of one Member State, has a significant cross-border impact and is necessary for at least one of the energy infrastructure priority corridors and areas. • PCI 7.4.2 is crucial in terms of security and diversification of the sources and routes of natural gas supply to/through Bulgaria and the region. It would enable connection to the Southern gas corridor producers – Caspian region, Middle East, access to LNG terminals in Turkey etc.

TRA-N-68 IONIAN ADRIATIC PIPELINE (IAP)

•Connecting Croatian Gas Transmission System with project TAP in Albania via Montenegro

•5 bcm/y : ALB- 1 bcm/y

MNE - 0,5 bcm/y

BiH - 1 bcm/y

HR and CEE - 2,5 bcm/y

•Commissioning: 2023

•Comprehensive FS - drawn up

•HR: ESIA, LP - obtained, Main Design, FS – drawn up, Construction Permit obtained for the 1st phase

•MNE & ALB: Gas Master Plan - Drawn up, Preliminary Design – in progress

•Annex II 2a

•Market integration, security of supply, competition, sustainability

•Gasification of MNE and ALB; and southern part of HR and BiH

•Located on the territory of one MS and has significant cross border impact

•New supply source for the region from the Southern

Corridor

•Infrastructure allowing connection to new gas

sources from the Caspian Basin, Central Asia, Middle

East and Eastern Med Basin

NEW PCI: TAP Interconnection

TYNDP reference project: Development of new imports from the South (TRA-N-007)

• New pipeline (new interconnection): 55 km (DN1400)

• Capacity Increment: associated to TAP project (enabler of TAP capacity connecting TAP

entry point to the Italian transmission network)

• Expected commissioning: end 2019

• Annex II (2): category (a) – Transmission pipeline

New on-shore pipeline interconnecting TAP to the Italian main transmission network, with capacity and timeline aligned with the TAP project

Criteria and benefits of the project:

• SGC Gas Corridor: part of infrastructure for the transmission of gas from Caspian Basin to

the EU

• Cross-border impact: located in one MS with significant cross-border impacts

• Benefits: 1) enhancement of security and diversification of Europe's energy supply by

connecting TAP to the Italian main gas networks and allowing gas from the Caspian basin

to flow into the European market; 2) increase of competition by availability of new gas

sources.

PCI 6.18: Adriatica Line

TYNDP reference project: Development of new imports from the South (TRA-N-007)

• New pipeline (backbone development): approx.430 km (DN1200)

• New compression plant: 33 MW (FID)

• Capacity increment: 24 MScm/d (264 GWh/d)

• Expected commissioning: 2023

• Annex II (2): category (a) and (d) – Transmission pipelines and compressor station

New on-shore pipeline and compressor station allowing an increase of transport capacity at new or existing points in South of Italy and the strengthening of import capacities along the south-north route

Criteria and benefits of the project :

• SGC Gas Corridor: part of infrastructure for the transmission of gas from Caspian Basin,

Central Asia, the Middle East and the Eastern Mediterranean Basin to the EU

• Cross-border impact: located in one MS with significant cross-border impacts

• Benefits: 1) enhancement of security and diversification of Europe's energy supply by

connecting new sources from Caspian Basin, Central Asia, the Middle East and the

Eastern Mediterranean Basin to be trasported across Italy and spread to the overall EU;

2) increase of competition by availability of new gas sources.

Presentation of and discussion on the proposal for the PCI candidates-groupings to be subject to the project specific cost-benefit

analysis - the Commission -

Group Nb Project Name ENTSOG code

Trans-Caspian TRA-N-339

South Caucasus Pipeline Future Expansion - SCPFX TRA-N-1138

TANAP - Trans Anatolian Natural Gas Pipeline Project TRA-F-221

7.1.3 Trans Adriatic Pipeline TRA-F-051

7.1.6 Metering and Regulating station at Nea Messimvria TRA-N-941

New PCI candidate Compressor station at Nea Messimvria TRA-N-971

7.1.2 Compressor Station Kipi Increment TRA-N-1129

7.1.4 Poseidon Pipeline TRA-N-010

7.1.7 Komotini-Thesprotia pipeline TRA-N-014

6.18 6.18 Development for new import from the South (Adriatica Line) TRA-N-007

7.3.1 EastMed Pipeline TRA-N-330

New PCI candidate Metering and Regulating station at Megalopoli TRA-N-1091

7.3.1 EastMed Pipeline TRA-N-330

New PCI candidate Metering and Regulating station at Megalopoli TRA-N-1091

7.1.4 Poseidon Pipeline TRA-N-010

6.18 Development for new import from the South (Adriatica Line) TRA-N-007

SGC_08 7.4 7.4.2 Interconnection Turkey-Bulgaria TRA-N-140

7.1.1

SGC_04

7.1

PCI no (2nd list)

SGC_07

7.1SGC_01

SGC_05

SGC_06

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Group Nb Project Name ENTSOG code

NOT MODELLED New PCI candidate White Stream TRA-N-053

NOT MODELLED 7.3.2 Cyprus Gas2EU TRA-N-1146

NOT MODELLED New PCI candidate Infrastructure gas pipeline Skopje - Tetovo - Gostivar - Albanian border TRA-N-545

PCI no (2nd list)

Next steps - the Commission -

Next steps:

• Presentation of the PCI candidates & the PCI candidates-groupings: February

• PS-CBAs: February - May

• Assessment of the PCI candidates: May – June

o Opinions of the Member States pursuant to Article 3(3)(a)

o Opinions of the Member States pursuant to Annex III(2)(9)

o Opinions of the NRAs pursuant to Article 3(2)(7)

• Draft regional list: June

• ACER's opinion: July – October

• Final regional list: October

• Adoption of the Union list: October - November

Supervision strategy for PCIs

• Updated version of the monitoring strategy document: "Supervising the development of PCIs – a shared responsibility" uploaded to CIRCA BC (13)

• It (a) explains the available tools for monitoring the development of the PCIs and (b) describes the way Regional Groups and its members contribute to the monitoring of the projects

• Document presented and discussed in 21/22 September 2016

• Regional Group Members now given further opportunity to provided us with comments

• Please email us by 28 February 2017 - ENER-B1-PROJECTS@ec.europa.eu - subject: "supervision strategy"

• If no comments by that date – document will be considered as approved by the Regional Groups

• In the future meetings of the RGs we will be more frequently bringing in questions linked to the monitoring and the overall implementation of PCIs